Having passed the strong ratings test of not being relegated to junk status, Finance Minister Pravin Gordhan called on South Africans not fall for Trump-style capitalism.
The minister who was speaking on Wednesday at the Gauteng Provincial Economic Indaba in Johannesburg, said the south African government, labour and business, must work together to create a growth economy that benefits all parts of society.
He said this while making reference to the US Republican presidential candidate Donald Trump whose economic and political policy is referred to as “crazy”
Last week President Obama lashed out at Trump’s economic policy proposals and his promises to tear down financial regulations through his policy of weaken regulations on Wall Street.
Speaking on the Trump-style capitalism, that the finance minister who also sited conversations had at the Organisation of the Petroleum Exporting Countries (Opec) meeting in Paris last week, said “the rich club is talking about similar concerns” that South Africa talks about regarding inequality.
“One of the issues people have is that productivity gains are not being broadly shared,” he said.
“Enterprises need to be productive, but the cream – depending on whether you’re on a Banting diet or not – is whisked away by a few at the top,” he said.
Further more, the minister made reference to recent story by a UK- based Guardian newspaper which stated that world millionaires investing in the fast growing Chinese economy and that of India, have a good push upward to a global private wealth of £115trn (R2 496trn) in 2015”.
Gordhan referred to a story in the UK-based Guardian newspaper this week, which said “rising numbers of millionaires in the fast-growing economies of China and India helped to push
“The 5.2% increase in wealth among the world’s richest individuals was driven largely by the Asia-Pacific area, which is expected to overtake western Europe as the second wealthiest region behind North America next year,” the report revealed.
Gordhan however said that most of the millionaires and billionaires are coming from the East, with special apologies to Gauteng. “It is not only the leftists who are commenting on these injustices, it is now becoming a wider concern,” he said, as he explains that rich countries are concerned about populist politics and socialist disruptions, which are increasing.
It is therefore becoming a global issue to create growth initiatives that benefit all parts of society, Gordhan said.
Meanwhile, praving Gordhan has been praised for a job well done for seeing to it that the country’s economy was not relegated to junk status.
Ratings agency Fitch, joins its peer in placing the country on BBB and Finance Minister Gordhan said the country need to do more to improve the economy by first avoiding the Trump-style capitalism.