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06 March 2020 | Story Valentino Ndaba | Photo Stephen Collett
Lesetja Kganyago, Governor of the South African Reserve Bank
Reserve Bank Governor, Lesetja Kganyago, presented a public lecture at the UFS on 4 March 2020.

With a 7% fiscal deficit on the Gross Domestic Product (GDP) projected by the National Treasury for the 2020/21 financial year, it would not take long to arrive at a dangerous level of debt at the rate that South Africa is borrowing. Although the South African Reserve Bank Governor, Lesetja Kganyago, does not consider a debt to GDP rate of 60% a disaster, he did express his concern regarding the country’s fiscal deficits being over 6% of the GDP.

Governor Kganyago presented a public lecture at the University of the Free State (UFS) on 4 March 2020, focusing on how we should use macro-economic policy and its role in our economic growth problem.

Unsustainable policies 
South Africa’s fiscal situation is not about tight monetary policy. According to the Governor: “Weak growth is endogenous in our fiscal problems. We cannot keep doing what we are doing and hope that growth will recover and save us. Growth is low, in large part, because of unsustainable policy.”

Avoiding an impending crisis
To address the problem, as a policymaker with more than 20 years’ experience, the Governor suggested that the recommendations made by Minister Tito Mboweni be taken into consideration. “The Minister of Finance, Tito Mboweni, is a man who says things that are true even when they are unpopular. His message is that we have to reduce spending and he is right to put this at the centre of our macro-economic debate,” said Governor Kganyago.

The state needs a radical economic turnaround strategy which is able to diminish the risk of losing market access and being forced to ask the International Monetary Fund for help. Governor Kganyago is positive that such a reformative tactic would go beyond monetary policy and ensure that the interest bill ceases to claim more of South Africa’s scarce resources. 

News Archive

Academic delivers inaugural lecture on South African foreign policy
2007-08-06

 

In her inaugural lecture Prof. Heidi Hudson from the Department of Political Sciences, focused on the impact that Pan-Africanist sentiments have had on South Africa’s foreign policy. She also put the resulting contradictions and ambiguities into context. At her inaugural lecture were, from the left: Proff. Frederick Fourie (Rector and Vice-Chancellor of the UFS), Heidi Hudson, Engela Pretorius (Vice-Dean: Faculty of The Humanities) and Daan Wessels (Research Associate in the Department of Political Science).
Photo: Stephen Collett

Academic delivers inaugural lecture on South African foreign policy

“We are committed to full participation as an equal partner … opposed to any efforts which might seek to project South Africa as some kind of superpower on our continent. … the people of Africa share a common destiny and must therefore … address their challenges … as a united force...” (Mbeki 1998:198-199).

Prof. Heidi Hudson from the Department of Political Science referred to this statement made by president Mbeki (made at the opening of the OAU Conference of Ministers of Information in 1995) when she delivered her inaugural lecture on the topic: South African foreign policy: The politics of Pan-Africanism and pragmatism.

One of the questions she asked is: “Can the South African state deliver democracy and welfare at home while simultaneously creating a stable, rules-based African community?”

She answers: “South Africa needs to reflect more critically and honestly on the dualism inherent in its ideological assumptions regarding relations with Africa. South Africa will always be expected by some to play a leadership role in Africa. At the moment, South Africa’s desire to be liked is hampering its role as leader of the continent.”

In her lecture she highlighted the ideological underpinnings and manifestations of South Africa’s foreign policy. Throughout she alluded to the risks associated with single-mindedly following an ideologically driven foreign policy. She emphasised that domestic or national interests are the victims in this process.

Prof. Hudson offers three broad options for South Africa to consider:

  • The Predator – the selfish bully promoting South African economic interest.
  • Mr Nice Guy – the non-hegemonic partner of the African boys club, multilaterally pursuing a pivotal but not dominant role.
  • The Hegemon - South Africa driving regional integration according to its values and favouring some African countries over others, and with checks and balances by civil society.

She chooses option three of hegemony. “Politically correct research views hegemony as bad and partnership as good. This is a romanticised notion – the two are not mutually exclusive,” she said.

However, she states that there have to be prerequisites to control the exercise of power. “The promotion of a counter-hegemon, such as Nigeria, is necessary. Nigeria has been more effective in some respects than South Africa in establishing its leadership, particularly in West Africa. Also needed is that government should be checked by civil society to avoid it sinking into authoritarianism. The case of business and labour coming to an agreement over the HIV/Aids issue is a positive example which illustrates that government cannot ignore civil society. But much more needs to be done in this regard. South Africa must also be very careful in how it uses its aid and should focus potential aid and development projects more explicitly in terms of promoting political stability,” she said.

Prof. Hudson said: “It is also questionable whether Mbeki’s Afro-centrism has in fact promoted the interests of ordinary citizens across Africa. Instead, elite interests in some countries have benefited. But ultimately, the single most important cost is the damage done to the moral code and ethical principles on which the South African Constitution and democracy is founded.

“In the end we all lose out. More pragmatism and less ideology in our relations within Africa may just be what are needed,” she said.

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