/Mamphela Ramphele: Socio-economic structural transformation more urgent than never

Mamphela Ramphele: Socio-economic structural transformation more urgent than never

2019-09-03 05:00

Young people are not only losing hope of future employment, but they are also becoming enraged and turning to violent means to express their frustrations, writes Mamphela Ramphele.

When you are standing on the edge of a
cliff and someone pulls you physically away from taking the fateful step
forward, would it be reasonable for you to be angry with this person? It is understandable
that being on the edge of a cliff may blur one’s awareness of the gravity of
the situation leading to mistrust of those trying to help.

A society with more than half its
able-bodied people unemployed and more than half its young citizens unable to
find jobs nor opportunities for on-the-job training is a society on the edge of
a fiscal cliff. We have more people on
social grants (17 million) than in jobs (16 million). Our pools of pension funds are sure to run
out. The young people who should be
contributing to these common pools cannot find jobs, nor create jobs themselves.

Minister Mboweni has risen to the
challenge of leadership by making concrete proposals to tackle the long-standing
structural problems in our economy. Our economy was designed for the benefit of
10% of the population designated as chosen on a colour-coded basis. His proposals are offering us a practical way
of addressing well-known bottlenecks and barriers to create platforms for
sustainable shared prosperity. 

The strategies outlined in his document
are long overdue. They are essential interventions in the key network
industrial sectors to get our economy going from its stalled position: Energy;
telecommunications; transport and water. These industries are the engines necessary to
drive our socio-economic development forward.

Organised labour should have been the
first to welcome these proposals and to make suggestions to strengthen them
wherever necessary, in order to secure the jobs at risk in our stalled economy. Union members’ pensions are at risk unless we
can generate the jobs desperately needed to absorb the millions of young people
to enable them to contribute to the national common pools of pension

Young people are not only losing hope of
future employment, but they are also becoming enraged and turning to violent
means to express their frustrations. Idle hands are fueling violent public protests that are destroying
public property, further undermining our common asset base and social stability.
Their sense of alienation is driving high levels of substance abuse, violent
crime and gangsterism in the degrading neighbourhoods they are forced to live
in. We dare not miss the opportunity to
signal to young people that we have the capacity and determination to implement
strategies to turn our joint futures around.

Organised Labour, as members of the
governing alliance, should also acknowledge its own complicity in the
development of a culture of poor accountability at the heart of state capture
and incompetence that have combined to undermine these key network industries
in both urban and rural areas. The
unions have also to accept major responsibility for the poor performance of the
education system, as the Volmink Report on KZN “money for jobs” scandal shows. Who
would not want to see these key sectors cleaned up to provide platforms for
on-the-job training for millions of young people?

Organised Labour should also acknowledge
that the Skills Training System imposed on our society by the unions and their
experts, despite its demonstrated failures elsewhere in the world, has failed
dismally to create the skills needed by our economy. A recent report indicated that the SETAs have
admitted that they could only successfully place an average of 30% of the
trainee cohorts who go through their system over more than a decade of
operation. Imagine that – a skills
system costing no less than R8bn per year performing at no higher than a
third of its required level! In
addition, the total number of beneficiaries of the Skills Development Fund stands
at no more than 50 000 per year! This in the face of no less than 6 million unemployed
young people is scandalous! It is time
to stop the betrayal of young people.

This week’s ENCA’s Checkpoint Report,
appropriately titled: Tertiary Trickery,
brings home to viewers the extent of the betrayal of young people through our
current skills development programme. The
SETA system has largely become a major feeding loop of the state capture
culture. Universities such as Limpopo are running Learnership Programs that
receive millions annually from SETAs. 
These funds disappear into the patronage networks, without any trace of
benefit to intended trainees. No one has
to date been held to account for this wastage. We need to stop feeding the beast that is this failed SETA system.

The network industries reforms proposed by
Minister Mboweni, coupled with President Ramaphosa’s District Development
approach, should become the arenas of real on-the-job training for all
able-bodied people currently marginalised in our society. We have to learn from
successful countries such as the German, Dutch and Singapore, with seamless
systems that train young people from school to the workplace. The best people
to run on-the-job training in all cases are people who have the experience in
the relevant professions, trades, and technical areas, not tenderpreneurs.

South Africa has to close the gap
between good public policies and implementation on the ground. Finance Minister Tito Mboweni’s intervention provides the
missing link – a business plan to move from policy discussions and consensus to
implementation. We should be grateful for
his leadership in showing us the pathway from the edge of the cliff to shared
prosperity. Let us get to work.

– Mamphela Ramphele is co-founder of ReimagineSA.

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