TEN WASTED YEARS… Tito Mboweni’s colloquium “to think outside the box about economic growth” is akin to closing the stable door after the racehorse had not only bolted, but already won a race elsewhere. Scavenging in the ANC dustbin of rejected advice, Mboweni picked Harvard economist Ricardo Hausmann as advisor, knowing well Hausmann’s advice on productive knowledge had been flatly ignored by the ANC Government since 2008.
Hausmann considers productive knowledge as the key factor that separates successful countries from unsuccessful ones. A lack of productive knowledge therefore retards economic growth and development.
From 1990 to 2003 South Africa lost 7% of its professionally qualified people, predominantly high-skilled whites. After some stability that came during the high growth Mbeki-Manuel years the exodus was re-triggered by the growing ineptitude of an administration that radically transformed departments and state-owned enterprises (SOEs) into little more than facades.
The police service, SAA, Transnet, the NPA and municipalities are some examples where cadre deployment trumped productive knowledge. The result:
- At township level, the disgruntled resorted to service protests.
- At professional level, they packed their bags and headed to the emigration counter with highly skilled blacks now outnumbering their white counterparts, bound in solidarity by a deep non-racial gatvolheid in the slide into corruption, lawlessness, dismal public services and the undermining of property rights.
- At investor level, South African businessmen have emigrated through FDI: fixed investment by South Africans abroad exceed fixed investments lured to our shores.
Make BEE growth compatible
Continue reading “Ten wasted years: Preferring “Dumbing Down” to “Productive Knowledge””