Political Economy - South Africa in crisis

THE Central Executive Committee of COSATU took a decision in 1986 that active discussion and study of the South African economy was a priority. This decision was prompted by the very serious problems of unemployment, retrenchment, inflation and poverty that we now face. It was also prompted by an understanding that organised workers must be able to propose and fight for solutions to these problems. In addition sanctions are now becoming a reality. The need to thoroughly understand the economy is even more urgent. One of the biggest problems for any person trying to understand the South African economy is the question: Through whose eyes do we study it? We can look at the economy through the eyes of the capitalists or we can look at it through the eyes of workers. Depending on which set of eyes we use, we’ll see a very different picture. The newspapers, radio, TV and education system all look at the economy through the eyes of the capitalist. They talk of economic laws* which are efficient and benefit everyone. And when the economy goes into a recession* or into a crisis* they argue that the economic laws are being interfered with. They want people to think that the economy is something controlled by laws that workers cannot change. In this booklet on the South African economy we will look at the economy through the eyes of workers. We will see how politics and economics have combined to the benefit of the capitalists. In doing this we will undertake a study of the political economy * of South Africa. The aim of this booklet is to provide a starting point for a study of the South African political economy. We will be looking back into our history to understand the very close link between politics and economics. The purpose of such a political economy study is to allow us to better understand just how serious the present crisis is. Being clearer on this will also allow us to begin discussing the real and effective solutions to the crisis. This is important because many of the solutions being proposed at present will benefit capitalism but will lead to small changes for the mass of the people