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SONA 2024 – Institutional incentives, not political affiliation, create prosperity

13 February 2024 Photo SUPPLIED

Opinion article by Prof Sethulego Matebesi, Associate Professor and Head of the Department of Sociology, University of the Free State.

President Cyril Ramaphosa’s 2024 State of the Nation Address (SONA) has, as expected, drawn mixed reactions. The speech placed strong emphasis on addressing significant sources of discontent and division within the country, such as gender-based violence, unemployment, crime, load shedding, poor service delivery, and corruption. The speech underscored the President’s commitment to economic reform and job creation through initiatives such as the Presidential Youth Employment Intervention.

At a time when South Africa is on the eve of national and provincial elections, where the youth hold immense potential to shape the outcome – if the registrations can translate into voting – it is interesting to note that the President’s approach of using the analogy of young ‘Tintswalo’ has drawn considerable debate.

‘Tintswalo’ and President Ramaphosa’s soft-line approach

While the President’s approach in utilising the positive life trajectory of Tintswalo – a young girl born in democratic South Africa – may have been intended to inspire hope and showcase progress for many since the end of apartheid, critics argue that it overlooks the persistent challenges that many young citizens still face. But is focusing on a single success story providing a misleading impression of the overall state of the nation and downplaying the continuous challenges South Africa faces?

Public opinion can vary, and different individuals and groups may have different perspectives on the nation’s current state. For many, the ANC-led government has created a nurturing environment through various policy interventions, and a system of social transfers geared towards sustainable and productive investment in citizens. This view was supported by the World Bank, which described the country’s policies and programmes for the poor as ‘effective, well-targeted, and providing sizeable benefits to the poorest households.’

Indeed, the post-apartheid environment and individual agency enabled today’s Tintswalos to prosper. These deliberate programmes and policy interventions provide an environment that fosters educational attainment, instils values, and encourages personal growth. However, it is important to acknowledge that not all young people have equal access to resources and opportunities.

President Ramaphosa did not appear harsh, but rather dignified in using political persuasion to convince the world of the government’s resolve to strive for equitable access to education, health care, and social services to ensure that all young people have a fair chance to prosper.

And, of course, relying on political persuasion is not hard.

The President, an advocate of the soft line approach, has perfected the art of smothering citizens with embraces – smothering that has lately been peppered with the phrase: ‘ba rata kapa ha ba rate (whether they like it or not), we have done well.’ He did not appear harsh each time he uttered this phrase, but dignified in the conviction of the achievements of the government he has been leading since February 2018. However, the effect of the Tintswalo analogy – accentuating the state’s weaknesses rather than obscuring them – is the opposite of what was intended.

The bottom line is that the number of unemployed, politically disengaged, and disgruntled youth is growing, as is their ferocity.

Shrinking fiscal resources and the central role of institutions

As South Africa achieves a significant 30-year milestone of political freedom, the protection of individual freedoms and the establishment of institutions to safeguard democratic values stand as noteworthy achievements. However, amid the celebrations, shrinking fiscal resources and the overarching impact of increasingly reduced budget cuts for the higher education sector will hamper the progress of a new generation of Tintswalos. It has repeatedly been proven that education is an essential pillar of a country’s economy.

In Why nations fail: The origins of power, prosperity and poverty, Acemoglu and Robinson underscore the significance of inclusive economic institutions. They argue that countries differ in their economic success because of their different institutions, the rules influencing how the economy works, and the incentives that motivate people.

Consider for a moment the difference between teenagers in North and South Korea.

According to these scholars, those in the North grow up in poverty and know that they will not become prosperous due to the propaganda they are fed in school. Those in the South obtain a good education, with incentives encouraging entrepreneurial initiative and creativity.

In South Africa, one of the most disheartening anomalies of our nation’s state is the blatant failure to ensure consequential management for the recurring unauthorised, irregular, fruitless, and wasteful expenditure by municipalities and state institutions reported by the Auditor-General. This is indicative of political power that is exercised arbitrarily.

In steering its future development, a South Africa that embraces diversity, prioritises economic recovery, invests in education, and leverages the incentives provided by state institutions will ensure equitable access to services and opportunities and allow all young people a fair chance to prosper, regardless of political affiliation.

News Archive

Guest lecture: Mr Pretorius, CEO of McCarthy Limited

2004-11-05

The challenges facing business leaders in a rapidly changing South Africa

“The world we used to know does not exist anymore. Leaders are continually dealing with crisis and opportunities, in a high-pressure environment,” said Mr Brand Pretorius, honorary professor from the University of the Free State , delivering his 13th guest lecture on the challenges facing business leaders in a rapidly changing South Africa .

Mr Pretorius, CEO of McCarthy Limited, identified certain trends which are responsible for changes to the South African business environment. He said the South African business environment is ever-changing, fast moving, complex and unpredictable. “As business people we have to deal with the impact,” he said.

“Years ago we were globally isolated. Now we live in a shrinking borderless world with crumbling trade barriers. Globilisation of our economy is accelerating. For South African business leaders this creates a sea of export opportunities,” he said.

Although there are ongoing demands for substantial profit growth from shareholders, the days of focussing only on their interests are gone, said Mr Pretorius. Stakeholder commitment now enjoys high priority and business leaders have to deal with the challenges accompanying black economic empowerment and employment equity.

Customers are also well-informed and demanding. Business leaders could easily loose the loyalty of their customers because of a hyper-competitive environment with an oversupply of goods and services.

Mr Pretorius stated that staff want to be involved and are looking for meaning in their workplace. Employers also have to deal with HIV/Aids in their workplaces. Trauma, absenteeism and financial implications could have a great effect on the viability of a business.

Against these changes Mr Pretorius pointed out the challenges business leaders are facing. In doing so a number of questions arise. The external business climate is characterised by turbulence and change. Internally there is a need for stability and meaning. How do we handle both challenges effectively?

Because of changes strategy decay is taking place and past strategies become irrelevant. Mr Pretorius said that business leaders need to modify their business models to prevent the downfall of their companies.

It is important for leaders to know what is happening in their world. “Continuous innovation is a critical success factor. The reality is that innovation is the only insurance against irrelevance,” he said.

Because of a changed environment leaders must perform and transform, simultaneously. How do we strike a balance between focused transformation and the achievement of world class performance, asked Mr Pretorius? “We need to bring about meaningful and sustainable empowerment, in order to create an inclusive economy and society. Leadership and management profiles should reflect the diversity of our teams, however at the same time every effort should be made to stop the brain drain and retain the expertise of experienced white managers.”

He also stated that leaders have an important role to play in terms of employment creation and corporate caring. “Sustainable stability and prosperity will not materialise without efforts in this regard.”

Mr Pretorius said that above challenges could be addressed by developing the ability to focus on creating a better future, rather than defending the past, a long-term vision, facing new realities, enhancing the value of brands and mobilising IT and the Internet to serve the business and customers better.

Retaining a positive vision of the future, embracing change and transformation, building your business according to the right principles and values and aspiring to be the best are some of the guidelines, according to Mr Brand, for future business success. He stated that creating a value advantage above one’s competitors, customer satisfaction and retention and inspirational leadership will add to the success of one’s business.

“We are indeed living in the era of the ultimate challenges, but also the ultimate opportunities. Let me clearly state that I have hope – in my view the tide has turned. Every day I experience small miracles inspired by ordinary people making an extraordinary difference,” said Mr Pretorius.

Media release
Issued by: Lacea Loader
Media Representative
Tel: (051) 401-2584
Cell: 083 645 2454
E-mail: loaderl.stg@mail.uovs.ac.za
5 November 2004

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