Andreas E Peltzer
Namibia experiences yet another phase of high inflation and unemployment. Prices for food and transport rise. Nothing we can do about it, we are told. Once the prices of food or petrol decrease, the general economic situation does not improve.
Higher interest rates lead people to get into trouble.
Unfortunately, the central banks have to raise the rates to maintain the currency stability. Instead of helping the people, governments have to tighten their belts as well.
Nobody really is in charge of these ‘monetary’ processes. The answer may surprise me. It actually is a taboo not many talk about: the labour market in southern Africa is the big elephant in the room.
The non-functioning of the labour market is a key reason for many wrongs.
Supply and demand are not balanced to signal the scarcity of a position. Instead, we observe ‘political prices’ that reflect the power of the bargaining groups in partial labour markets.
Every time the inflation figure is published, the requests for salary increases shoot up into similar territories. Governments give in to the demands and passively adapt the monetary figures. In economics, causalities can be misunderstood.
Fragmented politicised labour markets, unions with unreasonable demands (to attract members) and employers acting as monopolistic gatekeepers are the reasons for the unhealthy structure we face today.
To reform southern African labour markets may take a decade. But with the guidance of economic ethics, we know what is needed to get stable labour institutions – instead of forever accusing anonymous monetary figures.
In this particular case, it is an advantage that Namibia is a small state. Reforms are easier to implement.
Strengthening the tripartite negotiations, keeping retrenched employees in the unions and abolishing unnecessary professional entry standards seem necessary. Raising awareness if not negotiating with SADC countries on these issues is crucial.
Due to the difficulties in the education sector, the unemployment rate amongst the youth may be higher than the ‘natural’ rate. Nevertheless, it should be possible to decrease the general rate of unemployment by 15%.
The reform of the labour market can be a national project, including churches, civil society and other stakeholders. Even in municipalities, the communities may define how labour relations can improve locally.
All this presents a real task at hand. It creates enhanced communication and trust on the way forward beneficial to everyone.
*Andreas E Peltzer is a Catholic theologian.