Radical economic transformation shouldn\u2019t just be a slogan, but it needs to get to the root of poverty and inequality in South Africa, Finance Minister Pravin Gordhan said on Wednesday.<\/p>\n
Briefing the media ahead of his 2017 Budget Speech, Gordhan said whether one calls it radical economic transformation, or transformation, or inclusive growth, South Africa needs to consider something like a Charter of Economic rights in addition to the existing Constitutional Bill of Rights.<\/p>\n
Such a charter should address unemployment, facilitate training and retraining of citizens in the face of technological change and create an enabling environment for micro, small and medium businesses.<\/p>\n
Gordhan elaborated extensively on government\u2019s radical economic transformation objectives, emphasising its commitment to mass-based transformation that generates more meaningful black participation in the economy.<\/p>\n
South Africa needs to build a new national consensus and a new commitment to eradicate poverty, unemployment and inequality.<\/p>\n
\u201cPresident Zuma articulated this intent in the state of the nation address, rightly emphasising the radical nature of the socio-economic transformation we need,\u201d Gordhan said.<\/p>\n
Radical economic transformation does not mean a \u201cnarrow change that merely transfers ownership, benefits an elite and perpetuates inequality\u201d, Gordhan said.<\/p>\n
Although government has made progress in transforming the economy since 1994, which has led to a significant growth in the black middle class and provision of housing and services to millions of South Africans, the structure of the economy has remained largely unchanged.<\/p>\n
Government intends on addressing this challenge by implementing a programme that will focus on creating more jobs, eliminating poverty and narrowing inequality.<\/p>\n
Efforts to transform patterns of asset ownership and production, promoting competition and deconcentrating product markets will also be implemented.<\/p>\n
Growth should underpin transformation\u00a0<\/strong><\/p>\n Gordhan pointed out though that South Africa\u2019s growth challenge is intertwined with its transformation imperative.<\/p>\n \u201cWe need to transform in order to grow, we need to grow in order to transform. Without transformation, growth will reinforce inequality; without growth, transformation will be distorted by patronage. A growing economy makes more rapid transformation possible, but it is the fiscal system that is the most direct vehicle for redistribution and inclusivity,\u201d Gordhan said in his speech.<\/p>\n However, budgets alone cannot achieve our transformation goals and South Africa needs a combination of effective service delivery, collaboration between government, business, labour and the civil society and consensus about the sacrifices needed to realise radical economic transformation.<\/p>\n \u201cGovernment can be an important catalyst,\u201d Gordhan said, \u201cbut it cannot carry all of the responsibility for ensuring every citizen experiences a palpable change in wealth, dignity and well-being. It has to be our collective choice.\u201d<\/p>\n Gordhan agreed with Zuma that South Africa requires a new perspective on economic transformation.<\/p>\n The principles that should guide the transformation agenda should include programmes that create jobs, eliminate poverty and narrow the inequality gap, mass-based transformation that benefit the most disadvantaged South Africans, private and public partnerships for infrastructure and technological advances and the establishment of a new economy where the legacy of race domination is no longer visible.<\/p>\n