Very simply, here is an example of how wealth is created. Buy a piece of barren land. Install services and build something on it. You either live in it, or turn it in to something that produces an income, goods, services,and perhaps employment - or you rent it out. You may sell what you produce. You pay your contractors and labour. They in turn buy things, they exchange money for goods and services, money circulates.
In most modern democracies, it's the private sector (also known by the wise as the goose that lays the golden egg) that produces the wealth and pays the salary of the government and its bureaucrats - people who are appointed by the electorate to serve them. If it weren't for business, there would be no place to get the money from. Governments produce absolutely nothing - if they do, it's because they have taken away something that once belonged to an entrepreneur. The government's job is to serve it's people, administer the country, and be rewarded for their effective performance, while the people go to work every day to earn money to fuel the economy so that everyone has something to eat and somewhere to stay.
So the wealth is always created by the private sector. Anywhere in the world where businessess have been nationalised, like mining or telecommunications for example, the result has been inefficiency. Governments rise to power through democratic elections - or that is how democracy should work. The most important component for democracy to be effective is that those in power should be accountable for their portfolios in every sense and should suffer the consequences of failure to perform.
In the most developed parts of Asia, the Americas and Europe, if politicians misuse their positions, make poor decisions or merely fail to perform, they are red carded. Right now the English are kicking out cabinet ministers for not declaring donations for heaven's sake - you don't even have to steal anything there and you're out. Unfortunately this seems not to be the case in Africa - and sadly not in the country which boast one of the finest constitutions in the world - South Africa. Our track record shows that our politicians seem to be immune from accountability.
The world over, politicians who stand for office are seldon required to have qualifications, neither do they have to write examinations of competence in order to govern - the criteria to govern is to be well ensconced in the upper echelons of the most popular party, and know how to promise their constituents things that will get them elected, and bingo, you're on the gravy train! Some promises they manage to deliver, the balance remain undelivered, because the sum of promises are seldom rooted in reality or to capacity to deliver, they are merely stated policy. The most important component for democracy to be effective is that those in power should be accountable for their portfolios in every sense and should suffer the consequences of failure to perform. To a reasonable extent one would also hope that they would keep their promises.
For example, the portfolio of Finance seems to be getting it right. The Reserve Bank has on balance kept inflation down, helped to fuel economic growth, and we have a currency that still competes in the marketplace. SARS is collecting record amounts of income tax and closing various loopholes. The Department of Justice has it's problems, predominently in it's leadership, but the system still works even though it is groaning at the seams. However, this can not be said for other government departments and institutions.
And now, because it's something we have all tangibly experienced this year, we are finally starting to take notice. This is not the way to run a country. I could go on, but you get the picture. We now have 2 out of 3 South Africans living off state grants. This is all paid for by the productive minority without whose tax (and Trevor's diligent management thereof) the whole stack of cards would already have collapsed. If SARS can collect record amounts of tax, why can't the other departments simply do their jobs? It is because there is a culture of non-accountability permeating our government.
We need a government that is measured according to the standards of its delivery and held accountable for it's performance. Just as Zimbabwe held the future of their country in their own hands in the early eighties when Robert Mugabe swept to power on a wave of populism, we South Africans have the same decisions to make. Do we adopt a drastic Mindset Shift, admit that things are going wrong and do something about it - for instance elect people who do what they are elected to do - run this beautiful country effectively and with integrity, or do we let the rot continue?
The Goose is still laying those golden eggs, but she's getting jumpy. We need to nurse her back to health. They did it in Chile. They're doing it in Argentina. If we have the collective will, we can do it here.
We have living proof that a major South African City can be run properly and effeciently by dedicated South Africans - Cape Town! Helen Zille is a bit like the Jake White of South African politics - she took over a shaky ship, turned it around and made it work properly - and now they want her head on a block. Eish!
Do we collectively have the will to do the same for the country?
Paul du Toit
Professional Speaker, South African, Mindset Shifter,
