South African budget prompts cheer and wider divisions

2021 ◽  
Keyword(s):  
South African ◽  
Communist Party ◽  
Trade Unions ◽  
Economic Recovery ◽  
Structural Reforms ◽  
Content Type ◽  
The Social ◽  
Social Grants ◽  
Alliance Partners ◽  
Roll Out

Significance However, cuts to the social grants budget and a continued focus on the planned three-year wage freeze for civil servants has annoyed (among others) the ruling ANC's ‘Tripartite Alliance’ partners, the Congress of South African Trade Unions (COSATU) and the South African Communist Party (SACP). Impacts Pressure will grow on a joint National Treasury-Presidency initiative, ‘Operation Vulindlela’, to hasten long-promised structural reforms. The success of the government’s mass vaccination programme will depend on its efficacy and willingness to work with the private sector. The government's modest economic recovery projections could prove too optimistic if vaccine roll-out falters or further COVID-19 waves hit.

South Africa’s Zuma could face early exit

2017 ◽  
Keyword(s):  
South African ◽  
Communist Party ◽  
Economic Freedom ◽  
Current Crisis ◽  
Sharp Drop ◽  
Content Type ◽  
Early Exit ◽  
Finance Minister ◽  
Freedom Fighters ◽  
Alliance Partners

Significance The news prompted a sharp drop in the value of the rand, its largest one-week fall against the dollar since 2015 and the previous sacking of a finance minister. Zuma’s decision came against the wishes of many within the ANC and its alliance partners and prompted opposition parties to propose a parliamentary motion of no confidence in the president. Impacts Anti-Zuma protests could bring rival trade union organisations closer together. Poor relations between the ANC and the South African Communist Party (SACP) will worsen ahead of policy and elective conferences. The Economic Freedom Fighters (EFF) will benefit most from the current crisis, as the Democratic Alliance (DA) struggles with infighting.

South Africa’s Zuma will limp on as ANC splits further

2017 ◽  
Keyword(s):  
South African ◽  
Trade Unions ◽  
Public Affairs ◽  
Left Wing ◽  
The South ◽  
South African Council ◽  
Content Type ◽  
Freedom Fighters ◽  
Alliance Partners ◽  
National Coalition

Significance Earlier this month, the South African Council of Churches (SACC) and the Public Affairs Research Institute (PARI) released separate reports alleging a corrosive process of ‘state capture’ by influential business figures. Meanwhile, officials in the ANC’s alliance partners -- the South African Communist Party (SACP) and the Congress of South African Trade Unions (COSATU) -- are openly calling for Zuma's resignation. Impacts If Nkosazana Dlamini-Zuma triumphs in the ANC's leadership contest, COSATU could withhold support for the party at the 2019 elections. Support for both the Democratic Alliance and the Economic Freedom Fighters will increase and hasten formal national coalition talks. The nascent left-wing United Front movement could draw support from the ANC if a coalition with new trade union SAFTU is formalised. Racial polarisation could worsen as ANC populists blame 'white monopoly capital' and 'foreign agents' for government failings.

South African entrenched interests could stifle reform

2019 ◽  
Keyword(s):  
South African ◽  
Trade Unions ◽  
Balance Of Payments ◽  
Growth Strategy ◽  
Power Utility ◽  
Content Type ◽  
Finance Minister ◽  
Private Sector Investment ◽  
Business Confidence ◽  
Alliance Partners

Significance Although this was above market expectations and the economy has avoided entering a technical recession, fears persist over the slow pace of reforms by President Cyril Ramaphosa’s administration. Promised details on the overhaul of state-owned power utility Eskom have yet to be unveiled, and a new growth strategy released by Finance Minister Tito Mboweni has been pilloried by the ruling ANC’s Alliance partners, the Congress of South African Trade Unions (COSATU) and the South African Communist Party (SACP). Impacts Part of the opposition to the new document reflects longstanding ANC divisions and labour unease with Mboweni, a more pro-market figure. Despite recent chatter, Pretoria is a long way off the kind of balance of payments crisis that would likely necessitate a turn to the IMF. Business confidence and private-sector investment will likely remain weak until there is clear evidence of a commitment to implement reform.

Italy’s public sector reforms face uphill battle

2021 ◽  
Keyword(s):  
Public Administration ◽  
Financial Market ◽  
Radical Change ◽  
Economic Recovery ◽  
Northern Europe ◽  
Structural Reforms ◽  
Far Right ◽  
Content Type ◽  
Public Sector Reforms ◽  
Slow Progress

Significance The PNRR is vital to revive growth in the EU’s most fragile economy. In addition to providing foundations for a strong economic recovery from COVID-19, the PNRR also focus on broader structural reforms that have long constrained competitiveness. Among these, radical change to public administration is a key element. Impacts Perceptions that the recovery plan is struggling would damage financial-market confidence in Italy’s capacity to survive in the euro-area. Slow progress on the recovery would also entrench opposition in northern Europe towards deeper EU fiscal integration. Polling support for the far-right League party has been declining, which could force it to withdraw from the Draghi government.

South African labour movement will fracture further

2017 ◽  
Keyword(s):  
South African ◽  
Communist Party ◽  
Eastern Cape ◽  
Gauteng Province ◽  
Content Type ◽  
Democratic Movement ◽  
Labour Movement ◽  
Kwazulu Natal ◽  
Inkatha Freedom Party ◽  
Do So

Significance COSATU is part of the longstanding tripartite alliance with the ruling ANC and the South African Communist Party (SACP). Relations between Zuma and COSATU are irreparably damaged: the union has endorsed South Africa's deputy president, Cyril Ramaphosa, to succeed Zuma as ANC head at December's national conference. Impacts Whoever wins the ANC presidency will struggle to end party divisions, although Ramaphosa looks best placed to do so. The United Democratic Movement and Inkatha Freedom Party could make electoral gains in Eastern Cape and KwaZulu-Natal, respectively. The ANC's control of economically vital Gauteng province could be in jeopardy in 2019.

South African 2020 budget may delay Moody's downgrade

2020 ◽  
Keyword(s):  
South African ◽  
Civil Servants ◽  
Structural Reforms ◽  
Short Term ◽  
Content Type ◽  
Political Contention

Significance While the measures have been welcomed by investors, they depend on Pretoria reaching a deal with civil servants, whose unions have denounced the government’s plans. Impacts Despite commitments to a series of growth-boosting structural reforms outlined last year, progress will likely remain halting. Renewed funding for embattled South African Airways (SAA) will be a recurring source of public and political contention over the short term. Debt costs could rise further if a ratings downgrade sees investors demand even higher yields on South African debt.

South African relief plan will not halt further slide

2020 ◽  
Keyword(s):  
South African ◽  
Structural Reforms ◽  
International Financial Institutions ◽  
Severe Damage ◽  
Public And Private ◽  
Content Type ◽  
Social Fabric ◽  
Tobacco Sales ◽  
Legal Challenges ◽  
Public And Private Sector

Subject South African relief package. Significance A 500-billion-rand (28-billion-dollar) socio-economic relief package that President Cyril Ramaphosa announced last week will use public- and private-sector funding to provide some assistance to businesses and households impacted by the COVID-19-related crisis. However, many details have yet to be clarified, implementation is a risk and the package will not prevent severe damage to the economy and social fabric. Impacts With or without support from international financial institutions (IFIs), Pretoria will be forced to undertake some structural reforms. The country will emerge from the crisis even more heavily indebted, and dependent on IFI lending in a way it never previously was. Social tensions could grow over contentious lockdown measures, such as bans on cigarette and tobacco sales (which face legal challenges).

scholarly journals Do Social Grants Displace Remittances? Evidence From South Africa

2017 ◽  
Vol 16 (4) ◽  
pp. 275-284
Author(s):  
Mduduzi Biyase ◽  
Talent Zwane ◽  
September Rooderick
Keyword(s):  
South African ◽  
Negative Impact ◽  
National Income ◽  
Income Dynamics ◽  
Full Sample ◽  
Rural And Urban ◽  
The Social ◽  
Social Grants ◽  
Crowd Out ◽  
Social Grant

This paper employs a newly-available and representative National Income Dynamics Study (NIDS) data of South African households to investigate whether social grants crowd-out or displace remittances. The estimated results based on full sample reveal that while the social grants have a negative impact on the amount of remittances received, the effect is statistically insignificant – social grants do not crowd out or displace remittances. The coefficient on the social grant is also insignificant in both sub-samples (rural and urban), consistent with the results on the full sample

South African budget plans may prove too ambitious

2020 ◽  
Keyword(s):  
South African ◽  
Structural Adjustment ◽  
Poor Quality ◽  
Economic Recovery ◽  
Strategic Investment ◽  
Adjustment Programme ◽  
Content Type ◽  
Public Sector Unions ◽  
The Cost ◽  
Spending Cuts

Significance However, the MTBPS relies even more heavily on getting powerful public-sector unions to agree to unprecedented wage freezes over the next three years, putting its credibility in doubt at a time when Pretoria urgently needs to win back the confidence of investors. Impacts The risk is rising that the country could be forced to go to the IMF for a full structural adjustment programme within a couple of years. Funds for South African Airways (SAA)'s rescue will not cover the cost of creating a new carrier, which depends on strategic investment. The spending cuts could weigh further on poor-quality delivery of public services and may also dampen an economic recovery.

Ten Reasons Why I Oppose Boycotts Against Israeli Academics (And Why You Should Too!)

2019 ◽  
pp. 83-86
Author(s):  
Robert Fine
Keyword(s):  
South Africa ◽  
South African ◽  
Communist Party ◽  
Trade Union ◽  
Trade Unions ◽  
Political Life ◽  
Racial Democracy ◽  
First Time ◽  
Socialist Politics ◽  
Political Battle

This is not the first time I have been embroiled in a boycott debate. In the 1980s, I was involved in solidarity work with the fledgling indepen- dent trade unions in South Africa. They were a living expression of non-racial democracy across so-called national lines. Solidarity included establishing direct links between South African and British unions at official and rank–and-file levels. As a result of our solidarity activities, we were pilloried by leading figures in anti-apartheid, the ANC, and the South African Communist Party for breaking the boycott! When we invited a South African academic, a leading advocate of the new unions and anti-apartheid scholar, to speak at our Comparative Labour Studies pro- gram at Warwick University, a demonstration was organized by a couple of SACP stalwarts to prevent him from speaking. When we wrote a trade union solidarity pamphlet, we were told that unions could only be legal in South Africa if they collaborated with the regime and that we were in effect collaborationists. Beneath the argument about boycott what was really going on was a political battle between a progressive socialist politics and quite reactionary nationalist politics. It is a battle that has not stopped and is rising to the surface in contemporary South Africa. I grant there is no direct analogy between the boycott of apartheid South Africa and that of Israeli academic institutions, but I contend that a similar political battle is taking place—a battle for our future political life.

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