Why Ramaphosa’s hands are tied when it comes to making the big changes South Africa needs

Ancalagon

Honorary Master
Joined
Feb 23, 2010
Messages
15,564
Unions are holding the country hostage, and don't realize that if they don't give ground soon, there will be nothing left to negotiate over.

Which is not say that it is good that people could be out of jobs at a time when there are not enough jobs to go around. But the country is in a very sticky situation and unfortunately things will get worse no matter what Ramaphosa does. But some of the things he could do will bring more short term pain followed by greater long term gain.

Ultimately the ANC has only themselves to blame. They could have voted out Zuma years ago but they refused, and now the entire country is paying the price. You know that when things go really bad, they will blame WMC, apartheid and white people who are not patriotic and leave the country. Anyone but themselves.
 

HunterNW

Executive Member
Joined
Oct 21, 2014
Messages
8,181
"Ramaphosa “believes, fatally in our view, that maintaining unity among the crew is a priority,” it said.'

Let all drown while holding hands ..... FFS.
 

walterl

Expert Member
Joined
Oct 19, 2006
Messages
1,336
From the article: The country’s biggest business lobby told its members last week that the government has no political will, no sense of urgency and, unless it changes its ways, will be forced to seek relief from the International Monetary Fund.

So an IMF bailout is looking more and more like a reality for us. How soon and how will it affect the average man in the street?

From this article
https://www.sciencedirect.com/science/article/pii/S0161893815001003#targetText=The short-term focus of,economic development and investor protection.

It sounds like the IMF typically require these reforms when bailing out a country:

Typical economic reforms include devaluing currencies, lowering tariffs, encouraging foreign investment, privatizing state-owned enterprises, and reducing expenditure on the public sector. It is fair to say that these policy reforms are mainly free-market oriented.

1. devaluing currencies - So the Rand will tank even further - making imported goods more expensive (Fuel)
2. lowering tariffs - will have an impact on people producing goods that are protected by the tarrifs
3. encouraging foreign investment - sounds good?
4. privatizing state-owned enterprises - sounds fantastic?
5. reducing expenditure on the public sector - sounds fantastic?
 
Last edited:

Ancalagon

Honorary Master
Joined
Feb 23, 2010
Messages
15,564
Actually I hope they devalue the currency so that I can pay off my mortgage in one shot!

Jokes, but perhaps they need to.
 

wernerdp

Active Member
Joined
Apr 10, 2016
Messages
51
From the article: The country’s biggest business lobby told its members last week that the government has no political will, no sense of urgency and, unless it changes its ways, will be forced to seek relief from the International Monetary Fund.

So an IMF bailout is looking more and more like a reality for us. How soon and how will it affect the average man in the street?

From this article
https://www.sciencedirect.com/science/article/pii/S0161893815001003#targetText=The short-term focus of,economic development and investor protection.

It sounds like the IMF typically require these reforms when bailing out a country:

Typical economic reforms include devaluing currencies, lowering tariffs, encouraging foreign investment, privatizing state-owned enterprises, and reducing expenditure on the public sector. It is fair to say that these policy reforms are mainly free-market oriented.

1. devaluing currencies - So the Rand will tank even further - making imported goods more expensive (Fuel)
2. lowering tariffs - will have an impact on people producing goods that are protected by the tarrifs
3. encouraging foreign investment - sounds good?
4. privatizing state-owned enterprises - sounds fantastic?
5. reducing expenditure on the public sector - sounds fantastic?
Before the loan they will first drain your private pension
 

Sarg3_ZN

Well-Known Member
Joined
May 17, 2010
Messages
251
If you imply counting all that BEE/AA money and getting elbow deep in the trough, then yes his hands are tied.
 

Milano

Honorary Master
Joined
Feb 7, 2004
Messages
12,115
This problem stems from the reality that the government in SA is the largest union. They are fully aligned to labour, employ excessive numbers of unnecessary workers, give too many salary increases at absurd levels plus bonuses that are all way beyond performance levels. They are firmly opposed to the business sector, strongly against skilled immigrants, they are against all forms of privatisation including private health, private education, private security and so forth. They are pro-crime, pro-corruption, pro-welfare and they support unfettered population growth. The only miracle is that SA survived 25 years of ANC leadership.

That in itself is part of the larger problem. Ramaphosa's hands are not tied by any particular faction. The ANC is committed to the National Democratic Revolution. The NDR is directly opposed to every policy essential to the reforms required to save the country.
 
Last edited:

joshuatree

Expert Member
Joined
Jul 2, 2012
Messages
1,062
Politicians are always in somebody 's pocket. It is the old age nature of the game that they are in - the degree just differs. Unfortunately.
 

krycor

Honorary Master
Joined
Aug 4, 2005
Messages
14,944
This problem stems from the reality that the government in SA is the largest union. They are fully aligned to labour, employ excessive numbers of unnecessary workers, give too many salary increases at absurd levels plus bonuses that are all way beyond performance levels. They are firmly opposed to the business sector, strongly against skilled immigrants, they are against all forms of privatisation including private health, private education, private security and so forth. They are pro-crime, pro-corruption, pro-welfare and they support unfettered population growth. The only miracle is that SA survived 25 years of ANC leadership.

That in itself is part of the larger problem. Ramaphosa's hands are not tied by any particular faction. The ANC is committed to the National Democratic Revolution. The NDR is directly opposed to every policy essential to the reforms required to save the country.
The problem presents itself with Pravin Gordon’s interview (702/MoneyShow and other interviews) where he categorically says he can’t, in good conscious, kick 30k people to the curb wrt Eskom without there being a plan for employment elsewhere in the economy.

Now uncle Pravin is a nice guy and while he is correct in saying that in a consumption based economy, that impacts 30k families which doesn’t help much.. he is also being stupid because he easily forgets that gov is the policy maker.. not the employer. Ie sure, maybe let go 5-10k each year while you streamline line business BUT being in gov is not a one trick pony.. regulations and monopoly can be changed which indirectly gives these employees (well the ones that are capable) the ability to find new jobs.

Instead they acting as gate keepers which leaves them with greater moral debates around retrenchment impact.. again, gov should not be in business.. only policy, administration of state, welfare and policing. So ya.. till they fix this seemingly ideological issue it’s not gonna change on the ground.

People that complain about population size without strat on why are as silly as Pravin.. ie population growth is not a problem if you manage the country properly.. you won’t hear any ceo whine about growth of populous unless they managing welfare and then they doing a pathetic job.. which is what gov is doing.
 
Top