INCLUSIVE ECONOMY
NEVA MAKGETLA: Voting class will pay for state capture
The democratic state can bring about a more equitable economy only if politicians remain accountable to voters, writes Neva Makgetla
Debates concerning the state-capture report underscore the ambiguity of the term. The state in every capitalist country works closely with big business on a variety of issues, from providing infrastructure and tax incentives, to determining and managing property rights and enforcing environmental protection and health and safety laws. Some observers have argued all of these activities constitute state capture. But state capture occurs when a few connected businesses can ignore or circumvent the rule of law, abusing the power of the state to seize privileges and property for themselves. These companies may seem to profit primarily at the cost of other businesses, but they disempower and rob all citizens. Working people and the poor pay the highest price. Consider the findings in the public protector’s report on Eskom. Who ultimately pays for the shenanigans to do with Tegeta? If the process pushes up the price of coal or debt for Eskom, everyone who buys electricity will pay more. As...
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