Xenophobia: the solution is not better border control, but a change in economic policy

Johannes Wessels
@johannesEOSA1

Is Donald Trump advising the ANC and the DA?  Bashing (illegal?) immigration is a key pillar in both these campaigns and both parties are as wrong and misguided as Trump on this subject, trying to address consequences and ignoring the cause.

The ANC election manifesto promises the party will ensure “those who come to South Africa do so legally and that the country knows what they do while they are in the country”. It will take “tough measures against undocumented immigrants involved in criminal activities in the country or in cross-border crimes, including those involved in illegal trading and selling adulterated food in townships and villages”. 

It is hard to spot the difference when the DA’s Musi Maimane says “securing our borders is not simply about keeping people out. It is about ensuring that all migration occurs legally and knowing who has entered the country. It is about being able to plan ahead and make sure our budgets can stretch to cover all they need to cover. It is about making it easier for those who want to enter South Africa legally – because we want legal, law-abiding people to bring their skills here and help grow our economy – but making it impossible for those who want to enter illegally.”

the fault line of prejudice …

Continue reading “Xenophobia: the solution is not better border control, but a change in economic policy”

SA lost 83 000 companies in the financial & business sector in 10 years

Johannes Wessels@

@johannesEOSA1

The landscape of incorporated South Africa in the financial and business services sector has changed dramatically: in 2007 a total of 222 532 companies in this sector submitted tax returns, but SARS Company Income Tax (CIT) data show by 2016 this figure had shrunk to 139 664: a 37% decline.

The CIT data base records a decline by almost 83 000 incorporated firms.  What happened?

This sector includes banks, money lenders, short term insurance firms and independent brokers, investment advisors, business consulting firms as well as real estate services. Figure 1 shows how the number of firms were relatively stable from 2007 to 2010 before a rapid decline before stabilising again from 2014 onwards.

Continue reading “SA lost 83 000 companies in the financial & business sector in 10 years”

SA Government values mice as cheese factory managers more than productive knowledge

Almost 50 years ago, in 1970, Alvin Toffler in Future Shock wrote: Knowledge will become a more important driver of growth than capital or labour.

The two parties that then dominated the South African landscape did not hear the message: they had ideological ear wax and blinkers.

Inside the country the National Party wasted an opportunity to revamp and refocus Bantu education. In the words of Verwoerd, Western education was “of no avail for training which has as aim absorption in the European community while he cannot and will not be absorbed there. There is no place for him in the European community above certain forms of labour. However, within his own community all doors are open… For that reason, it must be replaced by Bantu Education. In the Native territories where the services of educated Bantu are much needed, Bantu education can complete its full circle, by which the child is… developed to his fullest extent in accordance with aptitude and ability…”  

The harvest: the Soweto 1976 riots. 

In exile and underground the ANC under the SACP influence believed labour was all important and capital from hell and that labour time was all that gave value to a product or service – a belief still voiced in 2016 by their leader.  (That statement was never repudiated by Ramaphosa or any leader in the ANC.)

The 80’s introduced “liberation before education”, the burning of schools and the intimidation of teachers and after 1994, the ANC government ensured SA’s education system became one of the worst performers in the world at the highest cost (% of GDP).  

The harvest:  a suffocating labour regime that leaves SA businesses hamstrung (considering productivity levels) and that promotes low-employment business practices.

Whilst race remains an important indicator to measure inequality, trying to always explain situations from a racial perspective often implies ignoring solutions with better potential than betting on race.  The ANC is not alone in operating with racial blinkers. Musi Maimane’s statement that race remains “the only consistent measure we have at this point for measuring inequality”, is simply wrong.

So is Ramaphosa when he offered protection for Maimane for that remark.

And so is Chris Bateman’s editorial to a recent Bloomberg report on Johann Rupert’s comments during the Chairman’s Conversation when he wrote: “What he (Rupert)  misses in his strong argument that Eskom and other SOEs are the real monopolies, is that White Monopoly Capital, like all effective propaganda, is built on the fundamental truth that our Gini-coefficient runs on racial lines – due to the architecture of apartheid.

There are non-racial measure tapes available… and some measure more accurately than race.  After a few examples where the ANC government chose cadres rather than knowledge, the focus will fall on one non-racial explanation for income and wealth inequality.

Continue reading “SA Government values mice as cheese factory managers more than productive knowledge”

SheNenegans and zol clouds: Summits almost like old-age home talent concerts

Government has developed a fool proof strategy to divert (most) attention from its frenetic fumbling of the economy that they had successfully put on full-throttle reverse.

The Job Summit’s rehearsed pitches and agreements to create jobs (almost as if jobs can be manufactured like overalls), to minimise retrenchments and to buy local,  reminds one of the annual retirement village talent concert: nothing new, innovative or inspiring. Rather old hat. It solicited respectful applause, but thankfully Nhlanhla Nene (ably assisted by Julius Malema and by the grace of the Guptas) diverted attention from the dreary Summit.

One has to give it to the ANC:  just as the Job Summit was obscured by sheNenegans, the previous big building block – the Emergency Stimulus Package – was enveloped by a court verdict releasing thick aromatic clouds of “Personal stimulus by zol”.  That high successfully obscured the regurgitating of empty promises of yesterday’s infrastructure development plans.

Can Trevor Noah develop such a script? Continue reading “SheNenegans and zol clouds: Summits almost like old-age home talent concerts”

Stimulus package ignores the Achilles heel of high crime

SA’s 2018 Crime statistics & the economy (2)

Government’s ad hoc stimulus package aims at infrastructure investment to promote growth.  It is totally silent on high crime levels that is one of the major causes of divestment with SA deteriorating into a combination of the Wild West and a Mafia state.

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South Africa’s shocking crime statistics were paraded on social media and media talk shops as being mainly caused by poverty.  Economic growth can therefore be considered as essential to get poverty down. Then crime levels would also decline…

Looking at data, an inverse picture emerges.

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Proletarian shopping at the Soweto Maul: Cele’s whistling in the graveyard doesn’t scare off the criminals

SA’s 2018 Crime statistics & the economy (1)

SA is increasingly deteriorating into a combination of the Wild West and a Mafia state with Government incapable of keeping crime in check. Minister Beki Cele admits “the ball was dropped” but remains adamant that “(w)e haven’t reached a state of lawlessness in South Africa and we won’t”.

The South African population begs to differ:  Crime pays… and quite handsomely as well.

Fred Mouton on crime stats

The returns on crime far exceeds returns on long-term investment in blue chip stocks.  South Africans’ trust in and reliance on the police is scarcer than icebergs in tropical oceans.  And inefficient policing doesn’t only kill the economy:  it kills justice as well.

Continue reading “Proletarian shopping at the Soweto Maul: Cele’s whistling in the graveyard doesn’t scare off the criminals”