In order to overcome the major problems facing the country, government and business need to foster a pragmatic relationship in order to develop a national development strategy that supports economic growth and job creation.

Speaking at the Institute of Directors Southern Africa's Annual Business Update Conference, in Sandton, on Thursday, Professor William Gumede of University of the Witwatersrand, argued that South African policy direction was being hindered by a lack of cooperation between business, government, organised labour and civil society.

Despite initiatives like The Presidency’s National Planning Commission to seek common goals to overcome social challenges, Gumede emphasised that compromise between all sectors was critical along the path to creating growth. Further, he argued that the scope of public-private partnership was often too broad and, instead of focusing on a national strategy for growth coalitions, they should rather focus on individual sectors, such as plugging the skills gap in the information technology sector.

Before such growth coalitions could be formed, however, there were a number of obstacles, in both the government and business sector, that needed to be overcome, he said.

On the governing side, he said there were certain factions in the African National Congress- (ANC-) led government that were ideologically opposed to business and argued that only the State could generate growth. These factions argued that government should discipline business. Others, within government, see business in a more opportunistic light and use it to further their own interests, he noted.

Certain elements in the business sector, on the other hand, were suspicious of the ANC government’s intentions and questioned the government’s motives when dealing with business. He also pointed out that there were some who had adopted a narrow capitalist approach, who argue that there is no role for government in driving growth.

In order to create successful growth coalitions, Gumede said that both government and business need to be more proactive in developing their relationship in order to develop clear policy directives on a micro scale.

Referred to as sectoral growth coalitions, he said that, by building partnerships on a smaller scale, government and business could gain credibility and momentum in dealing with the country's problems and, in turn, develop cooperation and build democracy.