Fin24 reports that the Department of Social Development's Comprehensive Social Security and Retirement Reform Green Paper, which was gazetted last Wednesday, caused a lot of uproar.

Two days later, National Treasury clarified that it was not the official position of government, as it had not been submitted to Cabinet "as yet". Instead, Treasury pointed out that it remained a "very soft proposal", reflecting the aspirations of some stakeholders who were consulted over almost two decades. Business and labour leaders publicly criticised key proposals of the Green Paper and there was a huge outcry among taxpayers who balked against measures which would require them to contribute to a state-managed retirement fund. Moreover, the suggestion of a 12% contribution into a state-managed retirement fund will require extensive consultations with retirement funds and their current members. Meantime, the debacle spotlighted how fragmented the SA government's approach to constructing economic policies is. "I think it speaks to the divides within government and the ideological divides, where the Treasury is seen by many within the [governing] party as being neoliberal and following the lines of what the IMF and investors want to hear," said economist Azar Jammine. In his view, the green paper reflected the position of the populist faction of the ANC, which was testing boundaries on how far it could push for things that are "fundamentally unaffordable". This faction has the backing of supporters of so-called "radical economic transformation" within the party. "Also, what it does show is a lack of leadership within government to coordinate these kinds of these disparate types of views on the way the economy should be run," said Jammine. He hopes the new Finance Minister Enoch Godongwana will be the voice of reason.

• Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24

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