Milei’s example shows GNU was a mistake opposition parties should abandon – FMF

Free Market Foundation CEO David Ansara says recent actions by President Cyril Ramaphosa expose the folly of opposition parties joining a 'Government of National Unity', which was a ploy by the ANC to continue ruling as before. He points to Argentinian president Javier Millei's success as evidence that tinkering with reforms is a waste of time when circumstance demand radical transformation is required..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..If you prefer WhatsApp for updates, sign up to the BizNews channel here..Watch here.Listen here.Highlight from the interview .Alec Hogg of BizNews sat down with David Ansara, CEO of the Free Market Foundation, to discuss the challenges facing South Africa's political landscape and economic future. Reflecting on insights from the World Economic Forum (WEF) in Davos and Argentina's bold reforms under President Javier Milei, the conversation brought into sharp focus the struggles within South Africa's government and the broader implications of diverging global economic trends..BizNews Reporter ___STEADY_PAYWALL___.Coalition politics on shaky ground.The discussion began with the disarray within South Africa's Government of National Unity (GNU). Ansara described the coalition's dynamics as plagued by an "asymmetry of power" and a lack of mutual respect among its members. While the Democratic Alliance (DA) initially joined the GNU to temper the ruling ANC's policy excesses, Ansara believes the DA has failed to exercise meaningful leverage.."The ANC, as the dominant partner, has simply pressed ahead with its policy agenda," he noted, citing the Expropriation Act and plans for National Health Insurance (NHI) as examples of the ANC's disregard for coalition partners' concerns. These policies, according to Ansara, are emblematic of the ANC's adherence to the National Democratic Revolution (NDR)—a doctrine rooted in socialist ideals from the 1960s..Ansara criticized the ANC's approach as hostile to private property rights and fundamentally damaging to South Africa's economic prospects. He argued that the party's obsession with state control and redistribution continues to harm the very people it claims to represent..Lessons from Argentina: Freedom as a guiding light.In stark contrast to South Africa's trajectory, Ansara highlighted Argentina's dramatic policy shift under President Javier Milei. At the WEF, Milei's speech championing life, liberty, and private property resonated strongly with business leaders, in part because it underscored the failures of socialism in Argentina and the promise of free-market reforms.."Milei represents the antithesis of the statist, collectivist philosophy dominating South Africa," said Ansara. The Argentine president has halved the size of his cabinet, cut public sector spending, and closed inefficient state-run entities—all with the aim of liberating the economy from bureaucratic strangleholds..Read more: DA demands GNU reset: Steenhuisen declares formal dispute over NHI and Expropriation Bill.Ansara applauded these measures, arguing that they create space for individual freedom and economic growth. He drew a parallel between Milei's approach and the Free Market Foundation's advocacy for policies like the transfer of title deeds to low-income homeowners. "We believe in extending property rights to all South Africans," he said, emphasizing that secure property rights are foundational to a prosperous society..The stakes for South Africa.The contrast between Argentina's reforms and South Africa's direction could not be more striking. While global trends show a growing embrace of free-market principles, South Africa appears stuck in a cycle of state overreach and policy stagnation. Ansara warned that this disconnect could have dire consequences.."Our debt-to-GDP ratio is nearing unsustainable levels, and state spending continues to rise," he said. Treasury's efforts to rein in spending are being undermined by the broader fiscal pressures created by ANC policies. For example, NHI proposals threaten to expropriate private medical savings, while the Expropriation Act undermines property rights—further eroding investor confidence..Ansara also pointed to the cultural underpinnings of South Africa's challenges. "We need a return to Western values that prioritize individual freedom, the rule of law, and respect for private property," he argued. He contrasted these principles with the "woke" ideologies that seek to allocate resources based on identity rather than merit, warning that such approaches could deepen societal divisions..The role of the DA in the GNU.Hogg asked Ansara whether the DA should have joined the GNU in the first place. Reflecting on the May 2024 elections, Ansara argued that the DA might have been better off supporting a minority government through a confidence-and-supply agreement rather than formally joining the coalition. This approach, he said, would have allowed the DA to exercise influence without being complicit in the ANC's policy failures.."The DA has been too passive within the GNU," Ansara said, urging the party to take a firmer stand on issues like property rights and federalism. He also called for more decisive action to counter the ANC's cadre deployment practices, which he described as undermining the independence of civil servants and sabotaging the coalition's functionality..Read more: Neil de Beer: The GNU in crisis, the land act, the leadership battles, MK's "missing millions" – and tragedy in the Congo….A call for bold leadership.As South Africa grapples with its political and economic challenges, Ansara emphasized the need for bold leadership and a clear vision for the future. He pointed to Milei's metaphor of the "chainsaw" as a powerful symbol of the kind of decisive action needed to cut through entrenched interests and pave the way for reform.."The world is moving toward greater liberalization and freedom," Ansara concluded. "South Africa must decide whether it wants to join that movement or continue down a path of stagnation and decline.".The stakes could not be higher. With rising public debt, crumbling infrastructure, and mounting social unrest, the country's current trajectory is unsustainable. But as Argentina's example shows, even the most entrenched problems can be overcome with the right combination of vision, courage, and determination..Read also:.Isreal-Hamas hostage dispute delays Gaza return, strains trucePower shift: How Act's amendments ushers in new era for electricity in SA – Webber WentzelExpropriation Act fallout: SA institutions sound alarm over threats to property rights and economy

Milei’s example shows GNU was a mistake opposition parties should abandon – FMF

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