South Africa can no longer afford to focus on consumption In assuming the Presidency of South Africa for his first full term after the elections in 2019 Mr Cyril Ramaphosa faces nearly insurmountable challenges. Lesser people would have declined the position, given these challenges. It does not take a genius to compile a long list of everything that is wrong in South Africa and needs to be fixed in the next five years of Mr Ramaphosa's presidency. It remains to be seen whether the challenges can be achieved within five years, given the grip of the dire political and economic disposition of South Africa. Dealing decisively with steps to eradicate corruption must therefore be high on Mr Ramaphosa's list of priorities. The focus must be on the eradication of corruption at all levels of civil society in South Africa. Also, another pressing challenge facing Mr Ramaphosa after his inauguration is the appointment of a new Cabinet and realigning government institutions’ functioning? While most South Africans agree that the country requires a smaller Cabinet, it is also necessary to achieve governance efficacy. Mr Ramaphosa must also consult on three strategic appointments or reappointments at the SA Reserve Bank. The vacancy left by the resignation of Deputy Governor Francois Groepe must be filled, while the terms of office of Governor Lesetja Kganyago and Deputy Governor Daniel Mminele expire in the near future. The reappointment of Messrs Kganyago and Mminele will appease investors and financial markets. This will maintain financial stability and reinforce certainty about South Africa's monetary policy focus. It is important to remember that South Africa is an important (little) economy in world terms and the largest economy in Africa. By size, South Africa is the 26th largest country in the world, while the country's population places it in 25th place, with 0.75 per cent of the world's population. However, South Africa ranks only 32nd in terms of gross domestic product. The implication is clear: The Ramaphosa government must adopt economic policies that will stimulate growth in economic output to grow South Africa's economy to a level commensurate with the country's land and population sizes. Such an improvement in economic ranking will make inroads into South Africa's unemployment problem. Economic recovery in South Africa will help to restore the country's position as the gateway for investments in Africa. It will also serve as rejustification of the country's roles in the international arena at institutions such as the Security Council of the United Nations and the G20 international forum for the governments and central bank governors from 19 countries and the European Union. Higher economic growth in South Africa requires a complete change of the government's policy focus. Mr Moeletsi Mbeki, a political commentator, identifies consumption as the current policy focus of the ANC. This is evident from aspects such as the sharp increases in Cabinet positions, civil service remuneration and social grant payments. Growth in consumption has pushed South Africa closer to the fiscal cliff. The fiscal cliff is the point where civil service remuneration, social grant payments and interest on government debt account for all government revenue. Owing to the focus on consumption, these expenditure items increased by 15 percentage points to 70% of government revenue over the past decade. With subdued economic growth at a level lower than the population growth rate, the only way to fund continued consumption is by means of wealth redistribution. It is therefore no surprise that the policy focus has in recent years increasingly focused on such redistribution. It is therefore vital for the ANC to refocus its policy objective from consumption to investment and accumulation. To restate: Under Mr Ramaphosa's leadership, government should focus considerably more attention on saving and investment which will sustain accumulation, rather than consumption. However, this is only possible in an environment of rapid economic growth, which will require considerable political attention in the next five years. The important role of private organisations cannot be ignored. The Government will have to develop strategic initiatives that will involve collaboration with the private sector. Public Private Partnerships should be part of strategic planning. Having a strategy such as in the above case, or a strategic plan, should be set on achieving a specific outcome, and in important government business, having a strategy is do-or-die. No one succeeds in without having - whether it is just keeping the lights on or it is about going head to head with economic growth challenges. Strategic management in government is when the 2 government institutions’ management defines goals and initiatives that consider available resources as well as existing and impending environmental factors, both internal and external, that can impact or influence success in achieving those goals and initiatives. The advantage of strategic management is that it creates a clear path ahead and gives the entire team a goal to work toward. Among the many factors that affect an institution’s ability to innovate, compete, and engage employees and its customers, is corporate culture. Corporate culture is the amalgamation of values, vision, mission, and the day-to-day aspects of communication, interaction, and operational goals that create the organizational atmosphere that pervades the way people work. It’s hard to define and even harder to get right. No amount of modern furnishings, stocked kitchens, happy hours, or young, hip workers can create a corporate culture. The question in the mind of Mr Ramaphosa should be how to create an effective government ‘corporate culture’. If corporate culture can make the difference in performance and innovation, then what is the bottom line for fostering that environment in government? The fact of the matter is that, at the most basic level, a government organization is simply a group of individuals working towards a goal—the generation of corporate culture, therefore, stems from the individuals who make up the organization, from leadership to the front-line workers; Corporate culture is an ongoing system of checks and balances that needs to be reinforced at all levels of the organizational and employee life cycle. Having a strategy such as in the above case, or a strategic plan, should be set on achieving a specific outcome, and in important government business, having a strategy is do-or-die. No one succeeds in without having - whether it is just keeping the lights on or it is about going head to head with economic growth challenges. Judgementally deliberate the characteristics of strategic planning and management as a process.

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Strategic planning and management in government involve a structured process to set and achieve specific goals and initiatives while considering available resources and external factors Here are some ... View the full answer