Summit leaves ANC as policy driver

THE ANC and its alliance partners ended a three-day summit on Sunday in which the economic policy direction was the major issue of difference, but the party appears to have held its ground with broadly pro-free market policies supported at the meeting.

However, a concession to the Left came in an agreement that the Reserve Bank’s mandate be reviewed and broadened. In setting interest rate policy, Cosatu has long indicated that development goals – and most particularly employment trends – must be part of the mix of indicators rather than overemphasising inflation.While a press conference at the end of the summit was delayed, earlier reports indicated that Cosatu had wanted itself, the SACP and the ANC to jointly forge economic policies, thus weakening the more conservative and pro-free market rump of the ANC, which supports inflation targeting, limited government spending and prudent monetary policies.This follows weeks of dissent within the party over whether Economic Development Minister Ebrahim Patel, a former trade unionist with strong left-wing credentials, and his allies, including Higher Education Minister Blade Nzimande, who is the general secretary of the SACP, should play a stronger role in setting the alliance’s policy goals.Patel wants South Africa to consider ways of reducing the value of the rand to make exports more competitive and to underpin the flagging manufacturing base of the country.Support for nationalising mines appears to be limited, with Deputy Transport Minister and SACP deputy general secretary Jeremy Cronin indicating that any attempt to nationalise would carry the cost of bailing out indebted mines.He has supported what he calls ‘socialisation’ of the mines with a greater say by workers in management and incremental expansion of the workers’ stake in the mines.However, it seems President Jacob Zuma wants Finance Minister Pravin Gordhan and National Planning Minister Trevor Manuel to continue to lead the economic planning function and continue their market-friendly stance.It would appear that the Left’s desire to play an equal role with the ANC in determining policy did not win the day at the conference.Zuma, who addressed the summit on Friday, reiterated his support for Manuel, giving him a vote of support to press ahead with a National Planning Commission, which would draw private sector experts into an advisory panel, to develop long-term development goals.- Business Report