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21 July 2021 | Story Prof Philippe Burger | Photo Sonia Small (Kaleidoscope Studios)
Prof Philippe Burger is Pro-Vice-Chancellor (Pro-VC): Poverty, Inequality and Economic Development at the University of the Free State.

Government needs to see the private sector as a true partner, whose expertise and capital can leverage its plans

Opinion article by Prof Philippe Burger, Pro-Vice-Chancellor (Pro-VC): Poverty, Inequality and Economic Development, University of the Free State

Many South Africans watched in disbelief last week as KwaZulu-Natal and Gauteng descended into looting, chaos, and destruction after Jacob Zuma’s imprisonment. Though probably instigated by disgruntled pro-Zuma supporters, it is clear that the protests very quickly spun out of control.

In newspapers, the question was repeatedly asked: did we see the hungry poor looting for food, or the opportunistic middle-class turning up in cars and bakkies to grab big-screen TVs and fridges? While images and videos clearly show that the latter were present in large numbers, the sight of other people – including gogos – ransacking supermarkets and running off on foot with loaves of bread and bags of maize meal, point to the former. In short, if people had jobs and hope that their lives would improve, I doubt we would have seen such anarchy.

Only a matter of time before protests and unrest occurred

With official unemployment above 30% and the broad unemployment rate – which includes discouraged work-seekers – in excess of 40%, it was only a matter of time before protests and unrest occurred. Zuma’s imprisonment was surely incidental. If it hadn’t been that, something else would have triggered the chaos.

COVID-19 also aggravated the situation, with 1,4 million people losing their jobs as a result of lockdown measures. In addition, the R350 COVID-relief grant expired at the end of April, leaving many with less food on the table.

A number of people argue that, in light of what has happened, we should bring back the relief grant; government may not have much choice now, given the lingering effect of 16 months of COVID restrictions on levels of unemployment and poverty. It will simply have to rearrange its budget to do so. However, we can’t stop at grants.

Even though a grant puts a bit of food in your stomach, it does not give you hope that the future will look better than today. It’s that bleak-looking future, that sense of nothing to lose, that fuels the looting and gives unsavoury politicians leverage for their selfish interests. Contrast this behaviour with that of taxi drivers, who came out to protect malls and chase away looters. They did so because they have something to lose, a stake in the economy to protect.

Every South African has a stake in the economy

We need to ensure that every South African has a stake in the economy. That way, people will have a sense of belonging, they will have options and agency, and they will have resources to improve their lives. They will have hope that the future will look better than the present. A person with a stake in the system is unlikely to break that system. 

We therefore need to seriously reconsider our policies, speed up much-needed change, and start building a believable message of hope – hope stemming from real concern for the plight of the poor, and serious implementation of policy. To help the poor, we need to create jobs, and for that we need investment.

Analysis of economic data shows that for every percentage point rise in private investment as percentage of GDP, we lift GDP growth by a third of a percentage point. And, on average, for every percentage point that GDP grows, employment increases by 1%. In recent years, private investment has averaged a mere 12% of GDP. If we can lift it to 15%, or even to 18%, GDP can grow by an extra one or two percentage points. It might not sound much, but after a decade or two it makes a big difference.

However, for this to happen, the government will have to see the private sector as a true partner whose expertise and capital can leverage the state’s plans. With such an approach, for instance, it would not be necessary for government to own and run an airline – a private operator will fill the gap in the market with its own capital, saving government billions of rands. And the government could long ago have let the private sector play a key role in the generation of electricity, instead of resisting change and only belatedly agreeing to lift the cap on private generation capacity from 1 MW to 100 MW.

Build communities where people escape poverty and have hope

The type and location of investment is also important. Data from the Council for Scientific and Industrial Research shows that SA’s urban population will have increased to between 50 million and 52 million by 2035. This is an increase of 12 million to 14 million compared to 2018.

We must use the opportunity to build green industries. It will save money and build a better environment. In short, as a growth strategy, we need a green, urban-driven investment strategy that caters for SA’s burgeoning urban population.

That way, we can build communities where people have a stake in the economy, where they have jobs and businesses, escape poverty, and have hope that their future and that of their children will improve.

• The article was first published in Business Day


News Archive

Student Transformation Forum kicks off
2010-08-19

Ms Nida Jooste and Ms Modieyi Mothole
Photo: Lize du Plessis

The establishment of a Broad Student Transformation Forum (BSTF) at the University of the Free State (UFS) was initiated yesterday with a student consultative forum called to determine the agenda and delegations to the BSTF.

The establishment of the BSTF follows the suspension of the functioning of the Student Representative Council (SRC) recently and aims to provide students broadly with the opportunity to reach consensus regarding student governance at the Main Campus in Bloemfontein.

The meeting was chaired by student affairs specialist Prof. Cecil Bodibe and was attended by representatives from student associations from all faculties, representatives of non-faculty student associations and representatives from residences. Commuter students were represented through private student associations.

“The meeting clearly expressed agreement that decisions taken by the BSTF should ensure that the student body and student-life programmes truly reflect our constitutional commitment to building a non-racial, non-sexist and democratic society, and that collaboration between students and management in affecting the decisions of the BSTF to achieve this should be prioritised,” Mr Rudi Buys, Dean of Student Affairs, said.

The forum agreed that apart from addressing specific questions pertaining to student governance, the BSTF should also address transformation issues broadly. The forum also agreed that the delegations to the BSTF should ensure that the forum is truly representative of the diverse student population and is inclusive of all stakeholder groups, including international students and students with disability. A proper process to determine the credentials of participating association was requested and will be implemented.

The meeting furthermore expressed the wish that the BSTF should exist only to determine the key changes that should be made to student governance now, so that the postponed SRC elections may continue as soon as possible. The BSTF will thus have a temporary role to enable the student body to reach consensus regarding changes to the SRC constitution.

Meanwhile, an Interim Student Committee (ISC) was appointed, which has the role to ensure the continuation of daily student life programmes and to ensure student representation in management and governance of the university continues during the deliberations of the BSTF. The ISC serves as an interim structure that will dissolve when a new SRC takes office following the outcome of the BSTF and the continuation of the SRC election.

The ISC consists of 15 members who were appointed through a process of nomination of four (4) members each from the faculty-student associations, non-faculty student associations and from residences, and three (3) members from the student executive committees of Kovsie Community Service, the Irawa student newspaper and the Kovsie Rag executive committee.

The ISC elected Ms Modieyi Mothole and Ms Nida Jooste as its chairperson and deputy-chairperson, respectively.
“I’m encouraged with the initiative and response of students to ensure student governance continues, which bears witness to the depth of leadership our student body holds, while the level of engagement by students in the BSTF indicates that the student body seriously consider issues of transformation,” said Mr Buys.

Media Release
Issued by: Lacea Loader
Director: Strategic Communication (actg.)
Tel: 051 401 2584
Cell: 083 645 2454
E-mail: loaderl@ufs.ac.za  
19 August 2010
 

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