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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

Little ‘Devil’s Worm’ on Top 10 New Species list
2012-05-29

 

Halicephalobus mephisto (Devil’s Worm)
Photo: Supplied
29 May 2012

A minuscule little worm found and researched with the assistance of researchers at the university has made it onto the list of Top 10 New Species of the world. The list was published by the International Institute for Species Exploration (IISE) at Arizona State University and a committee of scientists from around the world. It lists the top ten new species described in 2011.

An article on the new worm species appeared in the authoritative journal Nature in June 2011.
 
Prof. Esta van Heerden, leader of the university’s research team, says, “In our wildest dreams, we could not have imagined that we would get so much reaction from the worm’s discovery. We had to do so many checks and balances to convince Nature that the worm could survive in the old and warm water. We were very excited when the article was accepted but the media reaction was unbelievable.”
 
The tiny nematode, Halicephalobus mephisto (Devil’s Worm) of about 0,5 mm in length, is the deepest-living terrestrial multi-cellular organism on earth. It was discovered in the Beatrix gold mine near Welkom at a depth of 1,3 km.
 
The IISE says in a statement the species is remarkable for surviving immense underground pressure as well as high temperatures. The borehole water where this species lives has not been in contact with the earth’s atmosphere for the last 4 000 to 6 000 years.  
 
This top-10 list includes a sneezing monkey; a beautiful, but venomous jellyfish; a fungus named after a popular TV cartoon character; a night-blooming orchid; an ancient walking cactus creature; and a tiny wasp. A vibrant poppy, a giant millipede and a blue tarantula also made it onto the list.
 
The international selection committee made its choice from more than 200 nominations. They looked for species that captured the attention because they were unusual or because they had bizarre traits. Some of the new species have interesting names.
 
Prof. Van Heerden says, “We are very thankful for the exposure that the university gets as a result of the inclusion on the list and we enjoy the international cooperation immensely.”

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