Left's talk of 'radical transformation' a threat to growth

One of the more sober criticisms of the National Development Plan, arguably South Africa's best shot at achieving sustained economic growth, is that it is way too broad, more of a wish list than a workable action plan.

On the one hand, the plan, which is intended to create 11million (real) jobs by 2030 and reduce unemployment to 6%, requires sustained economic growth of more than 5% a year.

A flourishing business sector and massive investment by the private sector would be required to meet this ambitious target - South Africa is growing at a paltry 2% a year at present. These business-friendly underpinnings of the NDP have drawn vitriolic criticism from the ANC's powerful Left-leaning allies, who have branded the plan ''neo-liberal''.

And it seems, from President Jacob Zuma's choice of cabinet ministers, and the utterances of his new administration about its determination to implement a new, ''radical phase of socioeconomic transformation", that the Leftist vision of a dominant state spearheading ''inclusive'' economic growth has carried the day.

With the departure of Trevor Manuel and the downgrading of the once-powerful National Planning Ministry to a mere unit of the government, it remains to be seen whether the new finance minister, Nhlanhla Nene, will have the political clout to act as a counterweight to senior Left-leaning ministers such as Rob Davies (Trade and Industry) and Ebrahim Patel (Economic Development). The jury is also out on whether Zuma's new team will be able to improve the state's relationship with business, which is patchy at best.

The policies the new cabinet implements will be critical in determining whether the massive inflows of foreign and local currency that are required to kick-start the economy will happen.

Government policies that involve infringing on property rights to expropriate half of all commercial farms, ''nationalising'' the private security industry and giving the state ''free carry'' in oil and gas ventures are definitely not the way to go.