Abstract
M.Com. (Economics)
This study attempts to critically evaluate some of the aspects of policy recommendations
presently being made for economic development as a contribution to the debate on an optimal
approach for the reconstruction and development of the South African economy. The new
and, for South Africa, unknown democratic era, in which widely differing ideological
approaches towards economic development converge, offers an unique opportunity for
reconciliation within the democratic structures.
With this in mind, the ideological framework in terms of economic theory provides an
explanation as to the divergent views on economic development and the relief of poverty. The
White Paper, on Reconstruction and Development, to some extent seem to reconcile the
ideological differences found within the Government of National Unity. There do,
nevertheless, remain differences that need to be highlighted, especially when considering the
evolution of the ideological base of the African National Congress Alliance as the main
partner in the Government of National Unity.
The impact of changing circumstances since the Freedom Charter, the ANC's first major
economic policy statement, seem to explain the shift in the Alliance's socialistic and labour
related affinity in subsequent publications as well as the White Paper on Reconstruction and
Development. With the ANC evolving into a government in waiting and with external
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influences, especially the lessons from the international development experience and the policy
fundamentals inherent to the Normative Economic Model, becoming stark realities, the shift
towards a more pragmatic and market acknowledging approach, as expressed in the White
Paper on Reconstruction and development, became more pronounced.
When considering the White Paper as a management program for the development of the
South African economy, a wide array of sometimes contradictory goals are found which
further highlights the ideological base in favour of labour. This may be the result of a program that tends to be populist and attempting to satisfy needs over the full spectrum of society. However, the lessons from the international development experience were fully taken into account and the White Paper on Reconstruction and Development cannot be faulted for not incorporating all the ingredients of present day state-of-the-art development policy. Resources
for, and management ofthe program poses the more serious problems.
According to the Reconstruction and Development Program ofthe African National Congress,
the government submits to a people driven development approach. Following the evaluation of
the goals set to meet basic needs, two major problems arise, namely that the stated goals will probably be insufficient to satisfy the social backlog and will probably be unrealistic to achieve over as short a period as five years. The populist democracy that flows from the people driven process propagated by the Reconstruction and Development Program places certain constraints on the effective management of the reform process and as such may result in South Africa not achieving its potential rate of development. The inclusion of local an provincial government structures, civic organisations and others in the decision making process will enhance the credibility of policies but is slow in the development of policies and their implementation. The uncertainty surrounding the jurisdiction and competency of these new and democratised structures leads to the questioning of this process as far as the effective management of the development program is concerned. International experience has shown that a decisive and coherent economic team, visionary economic leadership and a strong political and judicial base to drive policy implementation are necessary ingredients for a development and reform program to succeed.