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Opinion: White monopoly capital is real and must be called as such

There have recently been divergent views around the existence or non-existence of white monopoly capital.

There are those who say such a term has the propensity to divide and polarise the country.

While others, such as former president Thabo Mbeki, say this narrative is an attempt by some in government to conceal their predisposition to loot from state coffers and therefore use white monopoly capital - which does not exist - as a scapegoat.

There are others who say the discourse is long overdue and the ANC-led government must never be apologetic in its mission of "radical economic transformation".

Also read: 'White monopoly capital - what is that?' asks Mbeki

Choosing to dismiss the fact that one race dominates the ownership and management of key economic sectors is not only a historical, but it is a time bomb which seeks to delay the aspirations of the black majority who can no longer hide their impatience with the ANC.

We must admit, the government's economic policies - and ones mainly championed under Mbeki - failed to transform society.

Mbeki's responses then came as a surprise when a Gauteng-based radio station, Power FM, asked him to speak about his time as president of the ANC and the country. South Africa was once again reminded that nine years is indeed a long time in politics.

When asked about how the country should address the lack of jobs and low economic growth, his response was that "the country needs investment and more investment". He firmly still subscribes to the old idea that foreign direct investment (FDI) can solve all of SA's economic woes.

While Mbeki is correct about white families or owners selling down equity stakes, their control remains. While Christo Wiese owns less of Shoprite than he did originally, his voice in the fate of the company is significant. This is also true in terms of the Ruperts and Remgro, who have interlocking companies through cross-sharing and cross-directorship to a point where they have shares in more than seven of the top 25 JSE-listed companies.

Read: Winning the 'white' war could boost Cyril in ANC race

They also control the banks which give them access to capital and also control some asset management companies which are sub-contracted to the Public Investment Corporation, which enable them to play around with "Black Money".

This control is also reflected in terms of the number of CEOs in JSE-listed companies who are mainly white males. So the discussion of white monopoly capital effectively centres in control, even if you dismiss effective ownership.

In that sense, it takes us back to the discussion about decision-making in the economy. To his credit, Mbeki outlined how SA companies keep more than necessary cash reserves. He called it "maintaining high levels of liquidity" rather than using "cash hoarding" as it is explicitly called.

How can government roll out social grants, a minimum wage for youth, free education and healthcare when companies are engaged in acts of economic terrorism (dodging or delaying paying taxes)?

Essentially, the country had to borrow short-term to fund induced extraction of long-term capital which continue to sustain white wealth domestically and monopoly capital internationally.

Mbeki argues that the problem with SA's economy is that it doesn't have savings when he allowed the very extraction of these savings to the London Stock Exchange. This inexorably means the decision-making in terms of the use and movement of capital and its effect in the economy and on the lives of the majority remains intact .

How do we change this situation? We know in Africa we must call out bad spirits by their names if we are to expel them. White monopoly capital must be treated as such.

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