Sunday 2 June 2024

29 May 2024: Neoliberalism vs Socialism by Lindokuhle Mponco

 

Introduction

South Africa was faced with the reality of either shifting to the left or to the right. On the left, the most distinguishable parties are the EFF, and PAC. The entry of Umkhonto WeSizwe Party throws a spanner in the works since MKP doesn’t have a distinguishable ideological base. Thus, leading one to the conclusion that MKP has a similar ideological base as the ANC, broad church, with the dominant tendency being centre-left conservative.  On the right, we have DA, FF+, Action SA, BOSA, PA, IFP and Rise Mzansi, which is much more centre-right than they are full blown right wing. The South African voter is confronted with that blunt reality. The ANC of course stands at the centre of it all, while ideologically it tilts to the right, slowly but surely shifting away from its centre right position. Thus, the South African voter was confronted with choosing between a leftist alternative which is characteristically socialist, or the current status quo, which is a right-wing reality called neoliberalism, or a political reality with MKP in the centre of the reviving neo-feudal forces, and ownership patterns which see aristocrats control land distribution and allocation.

 

30 Years of Neoliberalism

Since 1994, the ANC led government has pursued a social-economic reality which is centred around the free-market, and Monopoly Capital driving development, and subsequently growth. It has manifested itself in many macroeconomic frameworks (GEAR, ASGISA, and NDP) which have led to inequality, poverty, and unemployment. These triple challenges have escalated instead of decreasing due to the macroeconomic framework of neoliberalism failing to create jobs, grow the economy in a sustainable and equitable manner, redistribute wealth, and develop society while uplifting millions from the doldrums of poverty. The World Bank review of 2024 had the following analysis on the state of South Africa:

"Weak structural growth and the COVID-19 pandemic have exacerbated socio-economic challenges. (“South Africa Overview: Development news, research, data | World Bank”) South Africa’s GDP has recovered to its pre-pandemic levels, but the strength of the recovery has been hindered by multiple structural constraints, including ongoing power shortages and logistics bottlenecks. The recovery in employment continued in 2023 (790,000 jobs were added, leading to a higher level of employment than before the pandemic) but the pace of job creation has not kept up with the growing labour force, resulting in a rising number of unemployed people. The unemployment rate stood at an elevated 32.4% in 2023, with women and youth persistently more impacted. Inequality remains among the highest in the world, and poverty was estimated at 62.7% in 2023, based on the upper-middle-income country poverty line, only slightly below its pandemic peak. These trends have prompted growing social demands for government support, which could put the sustainability of public finances at risk if they are to be met." (“South Africa Overview: Development news, research, data | World Bank”)

The biggest Neoliberal institution in the world deems South Africa the most unequal society, thus, an admission that Neoliberalism has put South Africa in a precarious position. The precarity of our position is such that any seismic shift in the socio-economic conditions towards a negative posture, will lead to a socio-political crisis.  The observation the World Bank made was not only limited to the structural defects of the Neoliberal framework of growth, but it further made these observations:

"South Africa remains a dual economy with one of the highest and most persistent inequality rates in the world, with a consumption expenditure Gini coefficient of 0.67 in 2018. High inequality is perpetuated by a legacy of exclusion and the nature of economic growth, which is not pro-poor and does not generate sufficient jobs. Inequality in wealth is even higher, and intergenerational mobility is low, meaning inequalities are passed down from generation to generation with little change over time."

The admission by the World Bank that South Africa's economy has largely maintained its colonial character and Neoliberalism has not done enough is another point towards Neoliberalism not being the appropriate ideology towards emancipating the masses of our people. 30 years later, we remain a Neoliberal failure of epic proportions.

Where to from here?

The results of the recent elections despite the many objections regarding the fairness of the results have yielded a pro-neoliberal power base. The dominance of the Neoliberal faction in the ANC puts us in a precarious position as the Left in South Africa. However, there is a silver lining in the dark cloud. The EFF (the biggest Left-Wing Party in the country) might have lost electoral support due to the MKP's rise, and dominance in KZN, but it still represents the aspirations of the toiling masses of our people. The EFF can still form a government with the ANC and another centrist party and consolidate a Centre-Left regime which will ultimately be a radical Social-Democratic outlook in terms of economics and politics. There is a faction within the ANC that has no qualms with this arrangement, and this group consists of mainly the Polokwane 2007 group which removed former President Thabo Mbeki in the name of ending the neoliberal order. 

 

However, the reality is that the Neoliberal faction is in charge and is two steps ahead of the Polokwane remnants. This reality is unavoidable, and it seems from the recent conversations on social media by bourgeois journalists and commentators that a push for neoliberal consolidation of the ANC and the DA is advanced. This means that the bourgeois power structures are in phase 2 of their fight, and that is consolidation of their power bloc with the intention of accelerating the privatization agenda, and the neo liberalization of the Higher Education Sector through outsourcing Accommodation and Transportation. This means the status quo will be altered, and we will head to a hyperinflation phase. We must remember that when Boris Yeltsin pursued similar policies, Russia fell into the worst economic crisis since the 1917 crisis which led to two revolutions in one year. In Argentina, Javier Milie has implemented the same policies, and Argentina is going through a wave of protests due to hyperinflation and the increasing cost of living, and the decreasing standards of living. It is quite clear that we are headed to that scenario should there be a consolidation of the ANC and the DA's neoliberal agenda.

 

A scenario of the ANC going into a coalition with MK will require the removal of Ramaphosa, Presidential pardon for former President Jacob Zuma, and the amendment of the constitution to allow for a third term. Should that be agreed upon, we will have a coalition of the MKP and the ANC, which will fundamentally be no different from the period of 2014 - 2018. Furthermore, this will represent the consolidation of the ANC into a petty bourgeois conservative neoliberal party. No Leftist worth their salt can view the MKP as a genuine left-wing force or ally due to the politics of the MKP, ideological base, and the political history and contribution of the leader of the MKP to this Neoliberal reality. The ANC and MKP coalition will continue with the blatantly corrupt behaviour we have been witnessing for the past 15 - 25 years. A scenario of the ANC, MKP, and EFF would yield a much more stable outcome given the outright Left-Wing character of the EFF.

The ANC is so far right that it needs a Left-Wing party to yank it to the centre left. A total shift to the left would be wishful given the fact that we suffered a setback. 

 

However, the most practical and expected outcome is that the EFF won't feature in any coalition given the big push by White Monopoly Capital to block any coalition which has EFF forming part of it. This outcome is an outcome the Party must accept and internalise should it become a reality. It should not just accept it but actively work towards growing the Party qualitatively and quantitatively. This means sinking our roots deeper into the working class, middle class, students, and peasants. This means we must continue pushing our clarion call for Land, Jobs, and to Stop Loadshedding Now! This means that the Party must build structures around that immediate clarion call while not forgetting to emphasise that ours is a generational mission which seeks to actualise a Socialist economy and a political order that follows that same character whereby the working class and the peasantry control and own the means of production, and benefit from the fruits of their labour.

 

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