ANALYSIS: After the ANC government’s many failures, will it be big business to the rescue?

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Since the ANC won power at the beginning of our democratic era, one of the main tensions within our society has been the extent to which the government should control and run certain aspects of the economy. There have been strong indications, though, ...

The ANC’s position is that South Africa has a “mixed” economy in which the government runs certain parts of the economy while the private sector runs other parts of it.

Also, considering our history, and the way the apartheid government used its political power to control the economy, there was and is a need to transform the economy. The biggest agent available to do that is the state and the resources that it commands. But now Transnet will lease time on the lines to the private sector. The hope is that this will bring in more investment and a semblance of service to the people of this country.

In the provision of electricity, President Cyril Ramaphosa himself has said it is a grave risk to rely only on one single entity, Eskom, for power generation. However, there are also important pitfalls which must be avoided. And those who oppose privatisation have valid arguments they can make.

 

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crimemind3

Big business are not ultruists. Capital is mobile and easily takes flight to the environment that offers optimal reward/risk ratio. To expect business to bail out an economy is not gonna happen.

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They are unable to learn from their mistakes and even a child has that ability that is crucial for survival and growth

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