In his July 18th address to Parliament, President Cyril Ramaphosa asserted that building a Capable, Ethical Developmental State under the Government of National Unity (GNU) would drive “rapid... sustainable transformation in a country’s economic and social conditions through active, intensive and effective intervention in the structural causes of economic and social underdevelopment.”
A critical part of this plan involves professionalising the public sector, eliminating cadre deployment, and shielding state institutions from political interference to restore competence and public trust.
The 2022 framework for public service reform, adopted by Cabinet, prioritises merit-based recruitment and improved performance management systems.
Competency assessments and integrity tests are now applied across the public sector, even for political appointees like ministerial advisers.
Ramaphosa stressed that creating a professional public service committed to government policies—independent of political affiliations—was essential for repairing the damage caused by state capture.
During the Zuma era, public servants were instrumental in crippling state-owned enterprises (SOEs) like Eskom, where corruption and mismanagement resulted in load-shedding that continues to disrupt South African life.
Ramaphosa’s GNU prioritises appointing qualified professionals to leadership roles to rebuild these institutions, particularly at the municipal level. But this raises a deeper question: Can a developmental state achieve inclusive economic growth within the limits of capitalism?
The structural nature of capitalism conflicts with the GNU’s goals of inclusive growth and poverty reduction. Capital operates primarily for profit, not social upliftment.
Economic growth benefits the capitalist class, accumulating wealth through surplus value extracted from labour.
More so, job creation, properly construed, too, is nothing but how much labour capital is willing to buy in the market to produce surplus value/profit.
Capital does not wake up every day with the idea of creating jobs; if this was the case, there would be no question of unemployment.
It buys only so much labour power required by its production needs, no more, no less. And when the rate of profit falls capital has no compunction to rid itself of labour to reduce its production costs.
Furthermore, should the profit rate not rise to previous levels, then those who were retrenched will stay retrenched.
The point is that capital is not interested in labour’s welfare as human beings, it is only interested in acquiring labour’s ability to work for which it is prepared to pay for at the going market rate and not a rand more.
Employment rises only when it supports production and profit, and when profits fall, retrenchments follow—as seen across Eskom and other sectors.
Capital has no obligation to reinstate workers, and unemployment fuels poverty.
Korean academic Dae Oup Chang argues that the developmental state disguises the exploitative nature of capitalist social relations, making it appear that growth benefits all.
However, Ramaphosa remains committed to the idea that a Capable, Ethical Developmental State can restore industrialisation and economic stability, even though the capitalist system inherently produces inequality.
Ethical governance alone cannot overcome these structural contradictions.
Poverty is a by-product of capitalism. When workers are no longer needed, they are discarded and languish in poverty, a reality which is exacerbated by the possibilities of malnutrition and deprivation.
While economic growth may temporarily lift some out of poverty, systemic poverty persists.
In his 2024 SONA speech, Ramaphosa noted that in 1993, 71.1% of South Africans lived in poverty.
Today, 18.9 million people remain in extreme poverty, and 19.1 million are predicted by 2030—despite years of growth-focused policies. This demonstrates that capitalist growth does not eliminate poverty but reproduces it in new forms.
Even with governance reforms, poverty reduction remains elusive. Capital does not aim to eradicate poverty but merely manages labour costs to maintain profitability.
Eskom's struggles reflect this tension: despite state efforts to revive the SOE, the focus remains on reducing costs and outsourcing services, leading to further job losses.
Without challenging the profit-driven logic of capital, the state will struggle to address unemployment, inequality, and poverty sustainably.
In conclusion, whether the GNU operates as a Developmental State, a Capable Developmental State, or a capable, Ethical Developmental State, its actions remain constrained by capitalism’s priorities.
The state's efforts to foster inclusive growth are ultimately limited by a system prioritising profit over people.
The 27% of South African children under five suffering from malnutrition serves as a stark reminder that governance reforms alone cannot solve the country’s structural problems.
Without fundamentally rethinking the role of capital, the GNU will continue to face the same cycle of poverty, unemployment, and economic exclusion.
Biography
Dr Hoskins teaches Political Philosophy and South African Politics. He obtained his PhD thesis which critically analyses black economic empowerment in South Africa. His research interests include the socio- economic construction of race, black economic empowerment and theories of the developmental state. Mark obtained his BA, B Proc, LLB and LLM degrees from the University of the Western Cape. His LLM thesis focused on a historical materialist critique of disability law.
A critical part of this plan involves professionalising the public sector, eliminating cadre deployment, and shielding state institutions from political interference to restore competence and public trust.
The 2022 framework for public service reform, adopted by Cabinet, prioritises merit-based recruitment and improved performance management systems.
Competency assessments and integrity tests are now applied across the public sector, even for political appointees like ministerial advisers.
Ramaphosa stressed that creating a professional public service committed to government policies—independent of political affiliations—was essential for repairing the damage caused by state capture.
During the Zuma era, public servants were instrumental in crippling state-owned enterprises (SOEs) like Eskom, where corruption and mismanagement resulted in load-shedding that continues to disrupt South African life.
Ramaphosa’s GNU prioritises appointing qualified professionals to leadership roles to rebuild these institutions, particularly at the municipal level. But this raises a deeper question: Can a developmental state achieve inclusive economic growth within the limits of capitalism?
The structural nature of capitalism conflicts with the GNU’s goals of inclusive growth and poverty reduction. Capital operates primarily for profit, not social upliftment.
Economic growth benefits the capitalist class, accumulating wealth through surplus value extracted from labour.
More so, job creation, properly construed, too, is nothing but how much labour capital is willing to buy in the market to produce surplus value/profit.
Capital does not wake up every day with the idea of creating jobs; if this was the case, there would be no question of unemployment.
It buys only so much labour power required by its production needs, no more, no less. And when the rate of profit falls capital has no compunction to rid itself of labour to reduce its production costs.
Furthermore, should the profit rate not rise to previous levels, then those who were retrenched will stay retrenched.
The point is that capital is not interested in labour’s welfare as human beings, it is only interested in acquiring labour’s ability to work for which it is prepared to pay for at the going market rate and not a rand more.
Employment rises only when it supports production and profit, and when profits fall, retrenchments follow—as seen across Eskom and other sectors.
Capital has no obligation to reinstate workers, and unemployment fuels poverty.
Korean academic Dae Oup Chang argues that the developmental state disguises the exploitative nature of capitalist social relations, making it appear that growth benefits all.
However, Ramaphosa remains committed to the idea that a Capable, Ethical Developmental State can restore industrialisation and economic stability, even though the capitalist system inherently produces inequality.
Ethical governance alone cannot overcome these structural contradictions.
Poverty is a by-product of capitalism. When workers are no longer needed, they are discarded and languish in poverty, a reality which is exacerbated by the possibilities of malnutrition and deprivation.
While economic growth may temporarily lift some out of poverty, systemic poverty persists.
In his 2024 SONA speech, Ramaphosa noted that in 1993, 71.1% of South Africans lived in poverty.
Today, 18.9 million people remain in extreme poverty, and 19.1 million are predicted by 2030—despite years of growth-focused policies. This demonstrates that capitalist growth does not eliminate poverty but reproduces it in new forms.
Even with governance reforms, poverty reduction remains elusive. Capital does not aim to eradicate poverty but merely manages labour costs to maintain profitability.
Eskom's struggles reflect this tension: despite state efforts to revive the SOE, the focus remains on reducing costs and outsourcing services, leading to further job losses.
Without challenging the profit-driven logic of capital, the state will struggle to address unemployment, inequality, and poverty sustainably.
In conclusion, whether the GNU operates as a Developmental State, a Capable Developmental State, or a capable, Ethical Developmental State, its actions remain constrained by capitalism’s priorities.
The state's efforts to foster inclusive growth are ultimately limited by a system prioritising profit over people.
The 27% of South African children under five suffering from malnutrition serves as a stark reminder that governance reforms alone cannot solve the country’s structural problems.
Without fundamentally rethinking the role of capital, the GNU will continue to face the same cycle of poverty, unemployment, and economic exclusion.
Biography
Dr Hoskins teaches Political Philosophy and South African Politics. He obtained his PhD thesis which critically analyses black economic empowerment in South Africa. His research interests include the socio- economic construction of race, black economic empowerment and theories of the developmental state. Mark obtained his BA, B Proc, LLB and LLM degrees from the University of the Western Cape. His LLM thesis focused on a historical materialist critique of disability law.
