The challenges of radical socio-economic transformation

Significant shortcomings that hinder inclusive economic growth and perpetuate inequality

- BRIAN MAHLANGU

NOTWITHSTANDING the projected economic growth and job creation in the National Development Plan, South Africa's macroeconomic policies leave much to be desired.

Pursuing the current version of radical socioeconomic transformation policies, with glaring weaknesses, may not deliver the expected fundamental changes in the economic ideology, system, structure, and institutions necessary for sustainable growth and job creation. After everything has been said in the name of radical socioeconomic transformation, the ideological superstructure and economic substructure in South Africa are likely to remain intact. Thus, radical socioeconomic transformation may not result in inclusive economic growth and job creation to counter high unemployment.

Inclusive economic growth refers to decentralised and de-concentrated growth in areas where poor people live and work, allowing them to participate in economic activities. It should equitably redistribute national resources, income, and benefits to all citizens as a human right imperative, rather than denying opportunities to large sections of the poor population. When most poor people are excluded from the mainstream economy, the state must ensure that all citizens enjoy the fruits of inclusive economic growth.

Unfortunately, the shortfalls of substantive transformation sometimes occur even when blacks occupy top management positions in private and public institutions. This raises concerns about the sincerity of commitment to transformation among leaders mandated to accelerate it. Leadership must be accountable for the failure of socioeconomic transformation, rather than making excuses.