Economic Freedom Index: More commitment to poverty eradicating fundamentals needed

17 September 2008

KOBUS MARAIS, MP
DA SPOKESPERSON ON FINANCE

The latest Economic Freedom Index - which has seen South Africa drop from number 49 to 55 on the global index - makes it clear that, in the battle to eradicate poverty in South Africa, our leaders must take a firmer stand on the key issues of judicial independence and property rights.

The ability of the South African economy to create jobs for the country's unemployed millions depends on our ability to offer the same, or better, economic advantages offered by successful economies around the world. It is only if our businesses are able to compete with other economic powerhouses that South Africa will be in a position to attract the foreign investment and the skills needed to create significant numbers of jobs.

Several factors have seen South Africa falling five places on the economic freedom ranking in the past year. In particular, threats to judicial independence created by the Jacob Zuma trial, and the threat to property rights created by the (now withdrawn) Expropriation Bill have diminished trust in what are some of the tenets of a thriving economy.

While the Expropriation Bill has been shelved for the moment, there is no indication that the ANC has abandoned its objective of allowing the state to arbitrarily seize land, businesses and any other possessions held by private individuals; and there have been suggestions that the Bill will be reintroduced in 2009.

At the same time, the ongoing onslaught on the courts by members of the ANC has helped to foster the impression that the organisation has little respect for the independence of the judiciary.

Both of these problems must be tackled head-on, with unambiguous commitments from the ANC's leaders to respect both the right to own property and the independence of the courts, if South Africa is to create an environment in which businesses can thrive and the scourge of endemic poverty can be eliminated.