Further economic deterioration inevitable

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“The Medium-Term Budget Framework Statement (MTBRS) that the Minister of Finance, Tito Mboweni, submitted today to Parliament is a very clear evidence that the ANC’s policy of the socialist and communist redistribution of the assets, the economic growth potential and prosperity will continue to destroy the economy and the country,” says independent agricultural economist Fanie Brink.

He said the already lowered economic expectations at the time of the budget in February of this year had again not realised. The economic growth rate will have to be further reduced to the point where the economy will no longer grow because the ANC government will clearly never understand that economic growth is in virtually all countries in the world driven and created through the profit motive in a capitalist economic system. The budget deficit and the government debt as a percentage of Gross Domestic Product (GDP) will increase further each year and ultimately drive the country over the fiscal cliff.

“The total exaggerated expectations that the National Development Plan (NDP), as a long-term vision, envisaged and the repeated commitment of the ANC to the plan, is entirely based on absolutely no economic foundation and has totally ignored the basic principles of how economic growth and prosperity are created. The economic growth targets of up to 4,5% on which all the findings and recommendations of the NDP are based were purely sucked out of the thumbs of the commissioners who drafted the plan and have already fallen apart because the economy grows virtually nothing, and the country also has no economic growth prospects anymore.”

The continued statements and acceptance of the agricultural industry’s ability to create millions of jobs and economic growth follow the same path as in many other African countries that made at least 85% of their populations dependent on the agricultural industry. The “job opportunities” that can be created, according to the NOP is, in fact, the main objective of the government, even if it means that a million small black subsistence farmers are plunged into debt and poverty.

Brink said the redistribution of farmland without compensation would be the final blow which would cause the country to fall into much greater unemployment, poverty and starvation, as it also forced the other countries in Africa to put an end to their further economic and technological development and progress.

The ANC government no longer had a choice but to finally fall back on the expropriation of commercial agricultural land as the only remaining alternative to continue to try and keep itself in power after the next election, even though it will destroy the economic growth and the land even further.

“The only solution that can prevent South Africa from falling into an underdeveloped country with much greater poverty, unprecedented famine and human suffering is the total rejection of the ANC’s political and economic policy that was worldwide no longer accepted a number of years ago and a total return to a capitalist economic system as before 1994,” according to Brink.

Written by Fanie Brink, Independent Agricultural Economist