South Africa – the land of the free lunch
“There’s not such thing as a free lunch!” is an English saying derived from the late-19th century United States custom of enticing patrons to a saloon by offering a ‘free’ lunch with the purchase of a drink. Although the saloon often lost out on the deal,
But these ‘free’ goods and services come at a cost. The obvious ‘rand and cent’ costs are largely borne by the individual taxpayers, who comprise just 10% of the country’s population. But there are unseen socio-economic costs that must be considered too. One of these is the danger of violent protest when citizens’ expectations are repeatedly dashed, and another is the long-term cost of becoming a country of takers – a welfare state dependant on handouts for survival. In today’s article FAnews Online examines the latest ‘free for all’ policies unveiled by the state.
Healthcare for all – free of course
This year’s big story is the proposed rush-implementation of national health insurance (NHI). The ANC recently announced that its 2007 Polokwane policy decision on healthcare would have to be rushed through in the next five years. Incoming health minister Aaron Motsoaledi recently said “the present model of healthcare financing is just outright primitive and we are going to abandon it!” The minister rambled on about how the 8.5% of South Africa’s GDP currently spent on healthcare is unfairly divided, with less than half of the funds spent on 84% of the population. Most of the budget, he argues, services just 14% of the country’s citizens, the seven million members of private medical schemes. “Nowhere in the civilised world can you find that state of affairs,” ranted Motsoaledi. But the minister’s argument is fatally flawed. Although his percentages are close to the mark, the reality is that the seven million medical schemes members fund their medical services from after tax earnings. What government wants to do is convert medical schemes’ contributions into an ordinary tax and divvy up the funds across the entire country. The real shock is not in the status quo, but in the proposed change.
According to Motsoaledi, the answer to the country’s healthcare problem is taxpayer funded and state controlled. As Motsoaledi points out, “NHI is a system of universal health coverage where every citizen is covered by healthcare insurance – rich or poor.” What the minister doesn’t tell us is how a first world taxpayer funded healthcare system can work in a country with massive unemployment! He doesn’t address the fact that current infrastructure (public and private combined) will be inadequate to accommodate all of the country’s citizens. No mention is made of the burden of extending healthcare to the thousands of illegal immigrants who have flocked to South Africa over the last ten years. The minister brushes over the catastrophic state of the existing public healthcare sector and the administrative incompetence that created the shambles. Instead of criticising the plan, academics have had a field day planning fantastic healthcare systems without considering ‘real world’ limitations.
We often turn to Joe Public to clarify government thinking. In this case a Fin24 reader suggests that government consider three points before making a rash decision. They should “justify why the private healthcare sector needs to be simultaneously gutted, demonstrate the ability to resolve entrenched logistical and administrative issues as well as corruption, and explain their infatuation with importing Cuban doctors while punishing and chasing away locally trained medical professionals!”
Educashun, but we deedn’t wannah phey!
Another resurgent government promise is ‘free’ education. It’s a noble but flawed plan that will probably push the entire education system over the precipice. Since Comrade Blade Nzimande’s arrival at the ministry of higher education and training the agenda has deviated from the provision of quality education to the provision of ‘free’ education. The implementation agenda is ridiculous, much like government’s “halving unemployment by 2014” chaff. Government claims that as many as 40 percent of students already attend ‘no fee’ schools, with the ANC calling for 60 percent at their 2007 Polokwane conference. But the ruling party’s alliance partners want quicker action.
The Congress of SA Students (Cosas) wants 95% of South African public schools to be free to all students by 2010. Cosas president, Wesley Kgang, recently told a group of journalists that “... come next year the minister must come with us publicly to say we are now declaring about 95 percent of public schools no fee schools.” Why is the media providing these crackpots a platform? According to iafrica.co.za the student body wants to “make sure [they] ultimately achieve the goal of the Cosas – free compulsory education for all learners in public schools.” And they’re quite serious, because they will “continue to fight for [free education] recklessly!”
If their demands aren’t met they “will be forced to tell [their] constituency next year forcefully not to pay any school funds but to go to those schools free.” What a great legacy we are building for our children. The message is simple: “If you want something, go out and take it!” The entire education ministry would be wise to consider that you generally get what you pay for. If you pay nothing for your education then that’s probably the value you’ll attach to it. Besides, the education ‘free lunch’ will have to be funded from someone else’s pocket – hands up any taxpayers with a dime to spare!
Free electricity if you can grab it
The non-payment concept runs deep in modern South African society. Local municipalities carry the brunt of the ruling party alliances’ continued demands for free basic services for all. Apart from the millions of rand worth of electricity consumed through illegal connections, municipalities are owed billions due to years of non-payment. Many who can afford to pay simply choose not to. They enjoy their ‘free lunch’ while the municipality is forced to shelve infrastructure maintenance and expansion to the detriment of the entire community.
Editor’s thoughts:
South Africa is home to an estimated 48m people (we’re sure an accurate census will reveal millions more) and a taxpayer base of some 5m. Each social project announced by the ruling party requires these 5m taxpayers to cough up additional revenue despite not benefiting from the expenditure. Will the centre hold? We don’t think so! Add your comment below, or send it to [email protected]
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