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Opinion | Comment & Analysis

Mind the ethical gap

IRAJ ABEDIAN: COMMENT - Jun 22 2009 06:00
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Despite remarkable achievements during the past decade, South Africa's second "golden age" (after its acclaimed Sixties boom period) has come to an end, leaving behind some obdurate structural shortcomings.

It is now widely acknowledged that the past decade had some critical policy inadequacies and outright failures. The most obstinate factors hindering socioeconomic development include inadequacies in our education and training system and the absence of a well-defined industrial strategy that is rooted in the country's comparative advantages. General lack of effective implementation capacity within the various spheres of public sector is another evident shortcoming.

Yet, it may be argued that the most critical challenge facing the next phase of our democratic dispensation is none other than the absence of a set of well-defined and generally accepted ethical and moral values. As the forefathers of modern economics have convincingly argued, no socioeconomic system is sustainable, let alone prosperous, without a set of moral values that are generally internalised across the society. Democratic South Africa is no exception.

Over the past decade, a gradual but tangible rift has emerged between the country's socio-economic "formal (professed)" as opposed to "informal (practised)" ethics. For example, in the business sector, business executives and corporations formally subscribe to the "codes of good corporate governance". Their annual glossy reports are decorated with impressive evidence of their socially responsible citizenship.

Yet operationally they do not hesitate to collude and/or abuse their market powers. Evidence of price fixing among pharmaceutical companies, bread producers and steel manufacturers has emerged in high-profile cases over the past year or so. Sasol, South Africa's most celebrated petrochemical corporation, has been heavily fined, both locally and internationally, for its extensive anti-competitive practices.

The country's banking sector is also accused of malpractices and a report in this regard is yet to be made public by the Competition Commission. The banking sector appears to be exerting every pressure to halt its publication.

The gap between the formal and informal ethics within the government is even more pervasive. Frequently, government ministers and departmental executives espouse "global best practices", and in pursuit of such practices, they do not hesitate to spend considerable amounts of scarce fiscal resources on global travels and case studies. Yet operationally in their organisational and managerial behaviour there is little evidence of the values, standards or practices that conform to their formal statements.

It may be argued that much of the public sector's inability to perform may be attributable to the gap between the formal and informal rules. This is particularly pronounced at the top levels of public sector organisations which in turn filter down through the entire system.

Most importantly, the absence of political and executive accountability has been a key contributing factor. For instance, very few, if any, ministers or heads of department are taken to task when their annual financial audits are found unsatisfactory year after year.

CONTINUES BELOW


Such blatant condoning of poor performance and suboptimal use of public resources has a strong systemic and corruptive impact on the operational efficiency of the public sector. Indeed, the entire economy has been adversely affected. Duality of values is equally prevalent in labour unions and other social structures.

A socioeconomic and political milieu that admits and promotes duality of values is conducive to operational inefficiency and developmental inconsistencies. A case in point is our public sector environment, which lacks efficiency, consistency, coordination and systemic dynamism. This is true despite initiatives such as Batho Pele, the new Public Service Act and the Public Finance Management Act.

Given that nearly 40% of the country's GDP is managed within such an environment, unless the productivity of public sector improves drastically, the country's global competitiveness as well as its developmental imperatives is at risk. So is the prospect of accelerated social delivery.

More generally, it may be argued that the absence of a well-defined national value system is a major contributing factor to criminal behaviour within South Africa. The sooner a process of defining and adopting a generally agreed ethical value system is established, the sooner we are likely to lay the foundation for curbing crime and criminality in society.

As importantly, the raising of public sector productivity is a prerequisite for the ability of the economy to raise wage levels for the working classes. Ironically, the logjam between organised labour and government over the past decade has been one of the key contributors to the declining productivity in the public sector.

The South African economy now needs an appropriate mix of macro- and micro-economic policies to help increase the country's global competitiveness and achieve our developmental goals, dealing with growing socio-economic inequalities. Significantly, the conceptualisation of such a policy mix and its successful implementation require a skilful state. The success of economic policy henceforth rests on the capabilities of the state infrastructure and its effectiveness in policy development, coordination, integration and implementation. Transforming the modus operandi of the state therefore is indispensable if we hope to reverse some of the failures of the recent past.

The state as well as business and other organisational management, however, operates within a broader social value system. To turn the prevailing "formal-informal divide" within society around requires resolute business and socio-political leadership. Clearly, this is not a goal that government on its own can achieve. A much broader set of national capabilities has to be brought to bear on the subject.

However, government has a critical role to play. To this end, a conscious de-politicisation of the public service is the first and necessary step. This needs to be reinforced by a political and management leadership whose actions are congruent with their formal policy pronouncements.

At the same time, business leadership as well as labour unions and the broader social groupings have equally significant parts to play. Their commitment to and the promotion of an explicit set of value systems is as critical for changing the current pernicious culture of national resource utilisation.

Procrastination in this regard is bound to deepen a culture of operational mediocrity across private and public sectors and a deepening of inconsistent value systems within the society. Given the recent public pronouncements by President Jacob Zuma, the timing might well be right for a national initiative in this regard.

Dr Iraj Abedian is founder and chief executive of Pan-African Investment and Research Services
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You make an excellent point - pity the language is over the heads of so many South Africans. Our politicians don't need this message - they know they are corrupt and incompetent, and they don't care if their greed ultimately bankrupts our country the way Mugabe's thugs have destroyed Zimbabwe. By then they will all be rich and retired. The only people who can hold them to account are voters - or, to be more realistic, the branch leaders of the ANC. Unfortunately these folk buy into their party's 'culture' of loyalty and tolerance, which means they have no choice but to accept endless promises 'delivery' and 'zero tolerance' and to forgive when those promises are continuously broken. The only way this downward spiral can be halted is by imposing a new 'culture' on the ANC - a culture in which there's no forgiveness for dishonesty, and there are clearly defined time-scales and indicators for delivery, with no extensions or excuses allowed. This applies equally to political governance and the parastatals. Until leaders are summarily fired or forced to resign for the kind of arrogant incompetence which has become the norm in our New South Africa, we're doomed. If words were the same as actions, our schools and hospitals would be models of efficiency, crime would be stamped out, and Escom, SAA, SABC, Transnet and all the rest would be soaring like eagles. But they're not. So how many of their executives have been fired? The same cabal of crooks are simply recycled, and the ANC rank and file watch helplessly from the sidelines. It's time for them to act, or accept there will be nothing left for their children.
Alastair Grant on June 22, 2009, 12:49 pm
This has been a point I have been wailing about in most of my comments - moral regeneration that is! I have always said that no matter how deplorable Mbeki's governing style was, as the age old saying goes that "every dark cloud has a silver ligning", I would applaud him for coming with this kind of campaign. Those that were anti-Mbeki did not see this as important for, they were blinded by the green pasteurs ahead of them. The careerists and power mongers forgot about everything that is ethical except when they were campaigning for votes! The latter is still to be put in action as our president would emphasise that there would be no room for disservice. The ball is in your court Mr President, prove that you meant what you said by putting words into action.

However, the above plea is in the latter stages of every human being's life. I had on numerous ocassions, suggested that the former Minister of Education should try to incororate learning areas such as political and criminal studies either in the Life Orientation programmes or individually as learning areas in their own right. These, I suggested, would do away with political illiteracy and inculcate responsible citezenship among our children and the youth. The former would for example, highlight the importance of politics of opposition in a democracy that would harmfully be absolute while the latter, would build the moral behavior of children by highlighting that even white collar criminals don't succeed. Its up to the current leadership in the education sector (especially the Department of Basic Education) to take heed and act dicisively!!!
Phillip Jonas on June 23, 2009, 7:56 am
"...a conscious de-politicisation of the public service is the first and necessary step. This needs to be reinforced by a political and management leadership whose actions are congruent with their formal policy pronouncements."

Dr. Abedian: This is the best synoptic analysis of SA's problems I have read. All of the points are valid and well supported by the evidence but the statement quoted above is particularly apposite. No democracy can function properly with a highly politicised Public Service. Every democracy needs--requires--a highly skilled Professional Pubic Service. The ANC's failure to distinguish between itself as the current majority political party and its role in government is at the root of the current impasse in SA's development as a democratic state.

The INCONGRUENCE between our Federal Constitution and the statements of the ruling party's 'deployees' is the crux of the problem. When, for example, the President of the ANCYL says that the ANC 'must rule every Province' in the country, he is demonstrating both a contempt for the outcome of a democratic election and for the freedom of people to choose a different political philosophy.

Amazingly, many members of the Cabinet also express profoundly anti-democratic beliefs as for instance when the current Minister of Education Angie Motshekga expressed the view during the recent electoral campaign that SA 'needs only one political party'. Or when a public official turns logic on its head in order to defend an obviously politically expedient decision, as in the NDPP's dropping of the case against Mr. Zuma.

As long as the confusion between Party and Government persists SA will continue on the downward spiral it is on right now.

Most of our MPs demonstrate by their actions and public statements that they do not have an adequate understanding of our legal system as set out in the Constitution. Nor do they evidence any understanding of what it means to function as Professionals in government. The need to be impartial, to place the welfare of the country above any and all personal considerations, the need to take responsibility for their job performance (or lack thereof), the need to make their policies and their public utterances conform to the requirements of the Constitution rather than personal preference, are the essential elements of Professionalism which apply to everyone in government.

In order to achieve this, there needs to be a full overhaul of the ANC's own Party Constitution from an 'underground para-military revolutionary movement's credo' to a fully democratic Party Constitution which conforms to the Republic of SA's Constitution which MUST take precedence over ANY party's internal operations.

Until we establish CONGRUENCE between the majority party's REAL VALUES and those of the Republic's Constitution, all of our problems from under-performance to mass corruption will only get worse.
on June 23, 2009, 11:13 am
High quality stuff for a change, pity the response of individuals obsessed with "overhaul of the ANC" spoilt my reading.I know it's your democratic right so be 'objective,independent' but spare us your diatribe for a change.
In order for us to progress as a nation we need to embrace ethical practices in totality,without exception and stop nitpicking on those because of their complexity ,we have condemned to perpetual failure.
Moral regeneration also require that state machinery not be used to supress the will of the people!
SIZWE mazibuko on June 23, 2009, 1:01 pm
Good blog Dr. In the time that i have known Dr Abedian, he has proven consistant in his contributions to social dialogue. The same can be siad about the constant ANC bashing by Alastar Grant. If the model of modern living - vis Ameriaca and Europe has not mesed up the world I would have supported his ranting.
The voters of South Africa have for four concecutive elections chosen the ANC over "morality spewing" parties. Unless Grant is saying that those who vote ANC are "roten to the core" then his rantings - will remain a whiteman's whinging.
On the matter of societal values to benefit all we owe it to ourselves today and our children tommorow to ensure that we live each day as up right citizens. We don't share in the proceeds of crime - blue color or white color. For many a time politicians come in for a drabbing while the corruptors are let off the hook. What the Competition tribunal is uncovering is shamefull. Those sleezy "vulgar capitalist" must sent to the Island to learn ethical business conduct!!!!!
Mohlapametse Maditsi on June 23, 2009, 3:14 pm
"The sooner a process of defining and adopting a generally agreed ethical value system is established, the sooner we are likely to lay the foundation for curbing crime and criminality in society."And who exactly is supposed to "define and establish" something as intangible and historically-rooted as a value system? A committee of experts? The fact is that all of us have received from the past a set of values that are not what we pretend them to be. South Africans are not the friendly, hospitable, good-natured, "ubuntu"-practising folks we fancy ourselves to be. All of us, of all complexions, seem to possess a nasty streak of selfishness, rudeness, and a beggar-they-neighbour approach to each other. (South African driving is a case in point). Whatever the origins of this "value system", the only way to change it is to teach different values to our children, and for out leaders to practise those values visibly. Sadly, that hasn't happened at all since liberation - quite the opposite.
Ted Baumann on June 23, 2009, 6:55 pm
mohlapametse,

in addition to how you start, maybe the good doctor could be followed by ted baumann. an honest man and i believe with a good account for more of the ills of this country as opposed to anc bashing.

we have to question where this corruption is rooted. we have to find out what drives it and understand it to its core. no people have custody of this destructive endemic. the perpetuated stereotype that somehow black people are the cutodians of corruption is for me at the root of our inability to tackle corruption. we have to change tact and be more honest about this issue. how many people exceed the speed limit? buy stolen goods? swear and fight in front of their kids? live off credit? teach their kids to hate?

my humble take is that a lot of rich people who did not work for their money have a lot to answer for. not that they be villified, but for all others to aspire to act differently would be a good start. dont show off your wealth, enjoy it. humility. sharing. helping where you can. neighbourliness. you get my flow...

guess wha ted, it will show in our driving too, as you rightfully point out!
Edwin Matlapeng on June 24, 2009, 7:14 pm
The South African economy now needs an appropriate mix of macro- and micro-economic policies to help increase the country's global competitiveness and achieve our developmental goals, dealing with growing socio-economic inequalities. - I totally agree!
Jimmy Sweeney on June 29, 2009, 11:51 am
Unlike Dr Iraj Abedian, I don’t want to rely on Jacob Zuma to deal effectively with corrupt- and/or under-performing elected representatives. It should be the responsibility of the electorate to remove and replace these individuals. Sadly our electoral system does not make provision for us, the electorate, to recall corrupt- and/or non-performing elected representatives.

In 2002 an Electoral Task Team recommended the introduction of constituencies to our system of proportional representation where a portion of MP’s are elected from constituencies while the remainder are populated from a party list. The motivation was to make MP’s accountable to the electorate as opposed to party bosses. Unsurprisingly Thabo and his cabal rejected this, favouring the current party list system.

Again, in January 2009, a panel of 11 eminent persons commissioned by parliament found that the electoral system needed change to make MP’s more accountable to the electorate. Before parliament had a chance to debate this, our new political overlords got rid of Thabo and his groupies.

Despite all the accuracies it contains, your article has a hollow ring to it since you fail to acknowledge that we, the electorate is RSA, are being deprived of something that is regarded as best practice the world over; namely the right to recall elected officials.

adri stone on July 3, 2009, 5:27 pm
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