The ANC’s Sellout to Neoliberalism – Lessons for Turkey Brazil and the Rest of the Democratic Capitalist World

Ronnie Kasrils has published a fascinating piece on the legacy of the ANC in power. (For background in this remarkable figure see here and here). This legacy is likely to receive particular scrutiny in the days ahead in light of Mandela’s health troubles. South Africa has one of the world’s highest rates of social protest. The phenomenon is unsurprising given the nation’s stark inequality.

The situation is illustrative. The dominant paradigm for the globe has become the same democratic capitalism and neoliberal austerity that was pressed on South Africa in the early ’90s. South Africa, however, had a rare opportunity for pushing past that model towards some form of democratic socialism. If the wave of protests that have swept the world in the last few years manages to create a similar opportunity somewhere, the warning South Africa provides is clear – do not blink before the international bankers.

Kasrilis, it must be noted, has an overly optimist view of party politics. He still sees hope for change from within the ANC, the Communist Party, and Cosatu. International history furnishes very little to support such optimism, leaving only his other pole for hope: the popular movements. Fortunately, they are strong – we can only hope that misplaced devotion to the ANC (0r the memory of what the ANC once was) and party politics generally will whither and be supplanted by activity in these grassroots organizations.

http://www.guardian.co.uk/commentisfree/2013/jun/24/anc-faustian-pact-mandela-fatal-error

“How the ANC’s Faustian pact sold out South Africa’s poorest
In the early 1990s, we in the leadership of the ANC made a serious error. Our people still paying the price ….
Most shameful and shocking of all, the events of Bloody Thursday – 16 August 2012 – when police massacred 34 striking miners at Marikana mine, owned by the London-based Lonmin company. The Sharpeville massacre in 1960 prompted me to join the ANC. I found Marikana even more distressing: a democratic South Africa was meant to bring an end to such barbarity. And yet the president and his ministers, locked into a culture of cover-up. Incredibly, the South African Communist party, my party of over 50 years, did not condemn the police either.
South Africa’s liberation struggle reached a high point but not its zenith when we overcame apartheid rule. Back then, our hopes were high for our country given its modern industrial economy, strategic mineral resources (not only gold and diamonds), and a working class and organised trade union movement with a rich tradition of struggle. But that optimism overlooked the tenacity of the international capitalist system. From 1991 to 1996 the battle for the ANC’s soul got under way, and was eventually lost to corporate power: we were entrapped by the neoliberal economy – or, as some today cry out, we “sold our people down the river”.
What I call our Faustian moment came when we took an IMF loan on the eve of our first democratic election. That loan, with strings attached that precluded a radical economic agenda, was considered a necessary evil, as were concessions to keep negotiations on track and take delivery of the promised land for our people. Doubt had come to reign supreme: we believed, wrongly, there was no other option; that we had to be cautious, since by 1991 our once powerful ally, the Soviet union, bankrupted by the arms race, had collapsed. Inexcusably, we had lost faith in the ability of our own revolutionary masses to overcome all obstacles. Whatever the threats to isolate a radicalising South Africa, the world could not have done without our vast reserves of minerals. To lose our nerve was not necessary or inevitable. The ANC leadership needed to remain determined, united and free of corruption – and, above all, to hold on to its revolutionary will. Instead, we chickened out. The ANC leadership needed to remain true to its commitment of serving the people. This would have given it the hegemony it required not only over the entrenched capitalist class but over emergent elitists, many of whom would seek wealth through black economic empowerment, corrupt practices and selling political influence.
To break apartheid rule through negotiation, rather than a bloody civil war, seemed then an option too good to be ignored. However, at that time, the balance of power was with the ANC, and conditions were favourable for more radical change at the negotiating table than we ultimately accepted. It is by no means certain that the old order, apart from isolated rightist extremists, had the will or capability to resort to the bloody repression envisaged by Mandela’s leadership. If we had held our nerve, we could have pressed forward without making the concessions we did.
It was a dire error on my part to focus on my own responsibilities and leave the economic issues to the ANC’s experts. However, at the time, most of us never quite knew what was happening with the top-level economic discussions. As s Sampie Terreblanche has revealed in his critique, Lost in Transformation, by late 1993 big business strategies – hatched in 1991 at the mining mogul Harry Oppenheimer’s Johannesburg residence – were crystallising in secret late-night discussions at the Development Bank of South Africa. Present were South Africa’s mineral and energy leaders, the bosses of US and British companies with a presence in South Africa – and young ANC economists schooled in western economics. They were reporting to Mandela, and were either outwitted or frightened into submission by hints of the dire consequences for South Africa should an ANC government prevail with what were considered ruinous economic policies.
All means to eradicate poverty, which was Mandela’s and the ANC’s sworn promise to the “poorest of the poor”, were lost in the process. Nationalisation of the mines and heights of the economy as envisaged by the Freedom charter was abandoned. The ANC accepted responsibility for a vast apartheid-era debt, which should have been cancelled. A wealth tax on the super-rich to fund developmental projects was set aside, and domestic and international corporations, enriched by apartheid, were excused from any financial reparations. Extremely tight budgetary obligations were instituted that would tie the hands of any future governments; obligations to implement a free-trade policy and abolish all forms of tariff protection in keeping with neo-liberal free trade fundamentals were accepted. Big corporations were allowed to shift their main listings abroad. In Terreblanche’s opinion, these ANC concessions constituted “treacherous decisions that [will] haunt South Africa for generations to come”.
An ANC-Communist party leadership eager to assume political office (myself no less than others) readily accepted this devil’s pact, only to be damned in the process. It has bequeathed an economy so tied in to the neoliberal global formula and market fundamentalism that there is very little room to alleviate the plight of most of our people.
Little wonder that their patience is running out; that their anguished protests increase as they wrestle with deteriorating conditions of life; that those in power have no solutions. The scraps are left go to the emergent black elite; corruption has taken root as the greedy and ambitious fight like dogs over a bone.
In South Africa in 2008 the poorest 50% received only 7.8% of total income. While 83% of white South Africans were among the top 20% of income receivers in 2008, only 11% of our black population were. These statistics conceal unmitigated human suffering. Little wonder that the country has seen such an enormous rise in civil protest. ….
I do not believe the ANC alliance is beyond hope. There are countless good people in the ranks. But a revitalisation and renewal from top to bottom is urgently required. The ANC’s soul needs to be restored; its traditional values and culture of service reinstated. The pact with the devil needs to be broken.
At present the impoverished majority do not see any hope other than the ruling party, although the ANC’s ability to hold those allegiances is deteriorating. The effective parliamentary opposition reflects big business interests of various stripes, and while a strong parliamentary opposition is vital to keep the ANC on its toes, most voters want socialist policies, not measures inclined to serve big business interests, more privatisation and neoliberal economics.
This does not mean it is only up to the ANC, SACP and Cosatu to rescue the country from crises. …. The strategies and tactics of the grassroots – trade unions, civic and community organisations, women’s and youth groups – signpost the way ahead with their non-violent and dignified but militant action.”

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