south africa
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SOUTH AFRICA . What is the state of our nation? SARMA - 18 June 2012. We have come a long way since 1994… . Miracle transition to democracy Black snr managers up from 4% - 26% Percentage of people below $2 a day: down from 12.1% - 5% - PowerPoint PPT PresentationTRANSCRIPT
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SOUTH AFRICA
What is the state of our nation? SARMA - 18 June 2012
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We have come a long way since 1994…
Miracle transition to democracy Black snr managers up from 4% - 26% Percentage of people below $2 a day: down
from 12.1% - 5% Highest tax bracket: down from 43% - 40% Murders per day: down from 71- 44 Deaths per 1000 below 5 y down from 62-49 Consumer inflation: Down from 9.2% – 5%
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Or not?
Unemployment up from 31.5 – 35.4% (4.2m people)
Black income as percentage of white income down from 21.5 – 20.4%
Registered security guards up with 256% (from 115 331 – 411 109)
Percentage people with HIV up from 1.5% - 17% of population
Number of farms down from 60 901 – 39 966
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On balance?
Is South Africa moving in the right direction?
1994 = 43% 2011 = 55.3%
Answer depends on individual or collective vantage point (perception is stronger than fact)
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Weakness 1: Incapable state
“Our development strategy requires a capable state and active citizens” (8)
“A capable state focussed on service delivery requires a passionate… public service” (13)
Only 68% spent of infrastructure budget in 2011 (R178bn - R260bn; local government!)
Examples of mining and agriculture (5) “The time has come to confront uncertainty” (31)
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Report to Parliament last week….
Budget spend over 95% but delivery targets below 40%
Fruitless expenditure = R3.7bn
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UN Human Development Index
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HDI South Africa
1980 = 0.6591990 = 0.6981994 = 0.6442005 = 0.6782007 = 0.683(2011= 0.619)
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Weakness 2: Culture of corruption
New procurement rulesNew chief procurement officerOfficials with unspent budgets to held
liable
Counter-evidence in both public and private sectors is quite strong
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Corruption Perception Index
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Relative CPI scores for 2011
1. N Zeeland = 9.52. Denmark = 9.45. Singapore = 9.246. Mauritius = 5.164. S Africa = 4.1154 Zimbabwe = 2.2182 Somalia = 1.0
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Weakness 3: Education
Good participation rate in primary edWeak throughput rate in high schoolDrop in standards for NSCMisfit of post-school structuresUniversities: low participation and low
throughputNB This is the key source of
unemployment/unemploy-ability
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Weakness 4: Poverty and inequality
Dangerous levels of unemployment 18-
24 year olds Growing inequalities – social alienation
and the demand for economic liberation“Service delivery protests”
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Gini Coefficient
The Gini coefficient is a summary statistic of income inequality that varies from 0 (in the case of perfect equality where all households earn equal income) to 1 (in the case where one household earns all the income and other households earn nothing).
(Source: http://www.sarpn.org.za/documents/d0000990/)
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Top 10 Countries with lowest Gini Coefficients(Source: adapted from: http://en.wikipedia.org/wiki/List_of_countries_by_income_equality)
Gini Coefficient Column1 Column2
Rank UN Figure Country
1 0.247 Denmark2 0.249 Japan3 0.25 Sweden4 0.254 Czech Republic5 0.258 Norway6 0.258 Slovakia7 0.262 Bosnia & Herz8 0.269 Finland9 0.269 Hungary
10 0.281 Ukraine
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South Africa’s relative position
Gini Coefficient Column1 Column2
Rank UN Figure Country112 0.538 Honduras113 0.549 Chile114 0.551 Guatemala115 0.561 Panama116 0.57 Brazil
117 0.578 South Africa118 0.584 Paraguay119 0.586 Colombia120 0.592 Haiti121 0.601 Bolivia
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Opportunity 1: Use democracy
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Defend democratic freedoms/institutionsExpose and hold leaders accountableDiminish one party power to below 50%Constitution as supreme
law/Independent judiciary
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Ordinary people are NOT powerless
Participate in civil society Anti-retroviral medicine Arms deal re-openedE-toll saga
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Opportunity 2: Ride the global power shift
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The wave of the new global order
From West to East and South From G8 to BRICSFrom old economies to emerging onesFrom commodity exports to beneficiationFrom weak to excellent infrastructure
(over R800bn)
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RSA in new global order…
Stable macro-econ and monetary policies Stable non-toxic financial/banking system Independent Reserve Bank Efficient tax system with on-target collection Attractive governance rules (JSE rules, King
III, FICA) Positive economic growth in global context
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Opportunity 3: Green economies
SA is perfectly placed to develop leading technologies in wind and solar energy
Well positioned to benefit from eco-tourism (quickest job creation)
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Opportunity 4: Positive mindsetOpportunity 4: Positive mindset
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Positive attitude makes the difference
If a situation is on the knife’s edge: A positive mindset “creates” positive
effectsA negative mindset is a self-fulfilling
prophecy My personal verdict: SA one of the best
bets in the period 2012-2020
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Thank you very much!
Piet Naude Nelson Mandela Metro University Port Elizabeth