Gordhan talks arrogance, ANC and the political economy

8 September 2016

Cape Town – Finance Minister Pravin Gordhan is currently reading a book about how people in power can easily become too confident and arrogant and then come to a fall.

That was his answer to the opening question by political analyst Justice Malala at a discussion session at the Open Book Festival in Cape Town on Thursday.

Gordhan added that over the last 104 years the ANC has gone through many things and, therefore the last 20 years should be seen in that context.

"Like any organisation you have to confront reality from time to time. The local elections showed we were not quite in tune with what citizens want. We have to look in the mirror. The public told us as the ANC what they like and what not, and what they like us to change if the ANC wants their vote in future," said Gordhan.

"Like any other organisation we have to confront our weaknesses and also have the humility to build on our strengths."

Regarding the recent burning down of a building at the University of KwaZulu-Natal in Durban, Gordhan said South Africans have to find a better way to understand each other.

Student fees

He put the fees issue in context by saying that, although one has to look for ways to enable people to get an education, it is also imperative for South Africa to reduce its deficit and get its debt under control.

"We have to look at how Government can become much more efficient at spending money and where we can cut. That is the work going on now. The minister of higher education will make an announcement about the fees issue soon," said Gordhan.

"Whatever Government decides, we will have to find the money - of course it also depends on how much money it would be we have to find."

Political economy

When Malala asked Gordhan whether issues in the country are about politics or about the economy at the moment, Gordhan quickly answered that it is about the political economy.

"You cannot separate politics and economics. We must take personal and collective responsibility. If the matter is serious enough, we must make a call," said Gordhan.

"Every political leader would like to see the economy grow 4% to 5%. Every political leader would want to make changes to the economy. Then why is it not happening? It is because there are always winners and losers."

He said that if the potential losers are powerful enough, then their resistance is more.

"Vested interests determine if you have the space to bring change or not," said Gordhan.

When a member of the audience asked Gordhan whether Government in SA is at war with itself, he said there will always be disagreements if one has a family or group of more than five people. If that is not the case, one is living in an "artificial world".

Gordhan takes a broad view of what leadership means.

"The absence of a leader at a particular point in time does not mean the absence of their action. I do not have to wait for a lead to get things done," said Gordhan.

"Even within the ANC we have problems. We have certain perception challenges and we need to reflect on what we hear from the public and change. That is the test for the ANC over the next months. There are always lessons to be learnt from the past. We are living through quite an historic period."

This article first appeared on Fin24, see here.