Karima Brown and Amy Musgrave
1 December 2008
Johannesburg — THE global financial crisis will result in the African National Congress (ANC) tempering its election promises. Party leaders are warning that job-creation targets will probably have to be revised.
ANC policy unit head Jeff Radebe told Business Day yesterday the party's commitment to create 5-million jobs over five years starting next year would have to be reviewed.
"The issue of targets will have to be reconsidered. As the ANC we are a responsible organisation, and our analysis of the global financial sector shows that our (election) manifesto promises have to be within the global context.
"We have not decided yet (if the 5-million target) will go into the manifesto," he said.
The creation of "decent work" is central to the ANC's economic plans, but it is a tough challenge now. The party is under pressure to create unskilled jobs, and will ramp up the state's expanded public works programme to do so. The jobs target was set by a recent tripartite alliance economic summit to halve unemployment by 2014.
Radebe was speaking on the sidelines of the party's manifesto meeting, which is drawing up a manifesto framework document. The pledge will be revealed in January, suggesting the proposals will be revised.
He said all ANC election promises had to be budgeted for in the medium-term expenditure framework. There would be no "empty promises".
The caution on jobs comes amid threats of mining, automotive, leather and textile job losses. The Chamber of Mines, minerals and energy department and mining unions meet today on stemming job losses. The National Union of Metalworkers of SA has started similar meetings, including one with the National Association of Automobile Manufacturers of SA. General Motors SA intends to shed 2000 jobs this month.
The Congress of South African Trade Unions estimates 20000 jobs will be lost. Lonmin issued a section 189 notice last week that 4000 workers could lose their jobs .
Global gloom dominated the South African Communist Party (SACP) weekend central committee meeting. SACP boss Blade Nzimande warned of pressure on jobs and households. Deputy general secretary Jeremy Cronin said it was time to park the macroeconomics debate, and focus on the "real economy".
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And just the other day the government said the world economic slump would not affect SA so badly. Granted, very few, if any, economists of world standard had forecast the economic catastrophe the world is entering now. So, maybe the government economists have done their job right: They can describe in detail what has already happened and can give some clues as to why, but as to what the economy will do tomorrow, that would be pure guesswork on their part. Here the ANC (SACP!) are already backtracking on what they said a few days ago.