Comments on: State of Play in SA: The Post-Party Reality

By: OJ

OJ — Mon, 16 Aug 2010 18:05:57 +0000

South Africa has been riding a freak wave of good luck since the 1990’s. We have been in trouble for a long time and it will only worsen exponentially as time goes by. Here’s why:
1. We have no more key manufacturing industries. We manufacture almost nothing, relying mostly on export mining commodities. It’s the best strategy to stay a poor country.
2. We are destroying our commercial farming operations with bad politics. The very same people begging for land to squat on will be the very same people burning down everything in sight due to famine.
3. The current educational system is rubbish. There are loads of university students who is functionaly illiterate. To prosper, we need engineers, and then some more engineers and then even some more engineers.
4. With the whole of Africa suffering under mismanagement, the myth up north is that SA is the land of milk and honey. Millions of foreign Africans are already here, and millions more will flood the country. Most of them earn money here, and send it home to families. Our infrastructure cannot accommodate the flood of people and our economy can’t afford the outflow of cash.
5. On all levels government has things in control almost like a monkey flying a space shuttle. Collapsing local services is a reality. Budgets not spent is a reality.
6. It seems more and more likely that we will follow Zim down the drain, due to above mentioned points.

10 Years ago I decided to stay in the country trying to defy the odds. Lots of university friends moved to Austarlia at the same time. I lost almost everything I worked for over 20 years. They are living in a country that is steadily building a future for their children. I am not. I was a fool.

By: freeman

freeman — Tue, 03 Aug 2010 07:13:46 +0000

“SA has not actually been out of recession since 1990″

Say what? That’s just plain ridiculous. By the end of the 1980’s SA’s economy was in a sclerotic state, about to implode in on itself. There were great black and white and coloured and Indian political heroes of the struggle, but in reality the Apartheid state and economy collapsed under the weight of its own inadequacy.

While SA has only achieved a part freedom under the ANC government, the economy is a lot less regulated and tied up in red tape than it was in the 1980’s and early 1990’s.

Real value has rocketed tremendously in SA in a more free society. Much of our growth in the past 10 years was indeed frothy to the say the least, but recession since 1990, that’s just an idiotic statement with no grounding in any understanding of the way the world actually works.

High unemployment we may have, but that is a matter for another day. The escalation of real wealth in South Africa in the past two decades has been tremendous, despite lingering poor state policies, mass emigration of skilled people, and high crime rates. Say what you like, but in SA we seem to know how to beat the odds.

By: Theseus

Theseus — Sat, 31 Jul 2010 12:36:41 +0000

With 20% – 25% *official* unemployment, SA, despite Clever Trevor’s puffery and preening, has not actually been out of recession since 1990. And that is not counting *under* – employment.

With the vast majority of South Africans having no discretionary income, how effective can the Reserve Bank’s attempts at money management be?

By: T-man

T-man — Fri, 30 Jul 2010 13:36:42 +0000

Indeed, perhaps it is not political balls that are required, but something ostensibly different, with greater economic acumen and who reads this blog.

By: freeman

freeman — Fri, 30 Jul 2010 12:53:03 +0000

A woman perhaps?

By: T-man

T-man — Fri, 30 Jul 2010 08:38:18 +0000

A great synopsis, nice to get an understanding beneath all the metrics flouted in the media.

I suppose the great problem is that elections occur every 2/4 years, and for the politician, he needs to appear to be acting on the various issues at hand. Thus creating irrelevant departments and crazy legislation, resulting in further government bloat.

The greater interest then always falls second to self-interest. Indeed it would take a great orator with sound economic intelligence and political bravery to do and explain the correct course of action, in this case, patience. The question is, does such a man exist? Unfortunately it seems not.