South Africa’s second largest opposition party, the Economic Freedom Fighters (EFF), has lodged a parliamentary to amend laws that govern the management and ownership of the country’s central bank. Judging by the content of the EFF is clearly intent on upping the ante on economic policy ahead of the national elections in 2019.
The amendments come hot on the heels of the party pushing for the of land without compensation. The EFF was formed five years ago after it split from the African National Congress, positioning itself on the left of the political spectrum. The EFF on its own won’t be able to affect the Reserve Bank change given that it only has 25 MPs in parliament.
But the ANC has also thrown its weight behind the idea, adopting a at its national conference last year to nationalise the South African Reserve Bank. It’s not the call for the nationalisation of the central bank, per se, that’s raising concern. It’s how its been dressed up by the EFF and the prevailing political environment.
What the EFF wants to achieve is control of monetary policy by politicians. This would be dangerous for South Africa. Experiences from other countries that do this, like and , are not good.
They are all economic basket cases.