The myth: economic transformation will lead to happiness: The mantra of indigenization is a failed policy in the economic emancipation of the masses
I think that we should not be naïve to assume that in the event of a successful second transition, as envisaged by the ANC, the masses in South Africa will achieve a general level of happiness. The pursuit of happiness without unfair limitation is a fundamental human aspiration that any democracy should pursue.
I contend that the achievement of economic transformation in South Africa will not necessarily result in happiness. In other words, this vision of economic transition does not mean the average South Africa will be better off.
My perception is that we can achieve poverty alleviation and give the masses a chance to attain happiness in this lifetime by the better management and use of the financial resources that we have. This has nothing to do with how many blacks are in senior positions in the private sector nor has it anything to do with how many black capitalists we have or how many tenders are awarded to black owned companies. The black ownership of assets does not eradicate poverty, joblessness and unhappiness. It is a convenient myth.
As JF Kennedy once remarked: The great enemy of the truth is very often not the lie -- deliberate, contrived and dishonest, but the myth, persistent, persuasive, and unrealistic. Belief in myths allows the comfort of opinion without the discomfort of thought.
There are many examples in Africa where the transfer of the economy into black hands has led to more suffering and increased level of unhappiness. The mantra of indigenization is a failed policy in the economic emancipation of the masses.
Given the above, I think we must focus not on economic transition as the universal solution to our problems but we must first ask the question: What needs to be in place for us to increase the level of happiness of a majority of South Africans? The answer to that, would allow us to isolate and focus on those things that really matter.
It is important here to note that I am not saying that economic transformation is a bad thing and unnecessary nor am I saying that the ownership of economic assets by blacks is not desirable. I am definitely not on the side of those that are threatened by this transformation so let them not use my interpretations here as confirmation of their fears. Rather I am saying that, it will not spontaneously address the pressing economic challenges we face. As I have said before: let us not wait for mangoes under an apple tree.
The National Planning Commission (NPC) headed by Trevor Manuel identified the problems that we need to address to take South Africa forward, these being, among others: Poor education, unemployment levels too high, poor infrastructure, people locked in poverty where they live, limited access to the health, poor public services delivery and corruption.
In my opinion these problems will exist whether blacks own 100% of this economy or not and so it should be obvious that our focus must be how we deal with the above problems.
In the event that less black South Africans are in poverty, they live in decent neighborhoods and their children have access to a good affordable education, they have access to affordable health services and we stamp out corruption we would have been successful in increasing the general level of happiness of the majority. Ownership of assets is therefore a side issue and is not the silver bullet. In fact I would make that the 3rd transition. The experience in Zimbabwe is that you need education and skills first before you can successfully manage the assets that you may own in the future. The success of Asia is based on the maximization of the potential of human capital first and everything else follows.
In order to effectively deal with the problems identified by the NPC, first and foremost we need well educated and skilled people to manage the process and that ought to be our focus now. If for example the ANC only focuses on that for the next five years, this country will transform significantly because we would have removed that which is stopping us from achieving happiness.
This is where Mugabe got it right. The priority after independence was education and skills and the second phase, which of course has been a disaster, was ownership of assets or transformation. He focused on the input firsts and we should do the same in South Africa.
There is a tendency for us to want to tackle all the complex issues that face us all at once and we may in that process, lose the advantage of an informed and clinical approach. Let us therefore agree that the potential of this country is hidden in the brains, hopes and aspirations of South Africans and using our time and resources in unleashing that is a sensible approach.
Vince Musewe is an economist he is promoting new thinking about Africa under the topic "New African Minds" and you may read his philosophies about change by going to vincemusewe.blogspot.com or email him on [email protected]
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