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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

Accreditation status of the UFS School of Medicine
2016-06-14

This communication is a factual correction of the misinformation and accompanying hysteria that appeared in a local newspaper this past week on the accreditation status of programmes in the Faculty of Health Sciences’ School of Medicine. Here are the facts:
 
1. The flagship programme of the School of Medicine, the MB ChB, was fully accredited by the Health Professions Council of South Africa (HPCSA) through the year 2020. This is the maximum accreditation status that any programme can achieve, and the UFS leadership is extremely pleased with this outcome, as it expresses confidence in the work done by our academics in the School of Medicine. Not only was the basic medical training for new doctors fully accredited, the HPSCA approved an increase in the number of trainee doctors from 140 to 160, and also approved additional training sites in Trompsburg and Kimberley.
 
2. The honours programmes of the School of Medicine received full accreditation as well.
 
3. All the master’s degree programmes in the School of Medicine also received accreditation. The UFS is especially pleased with the significant improvements in the Department of Cardiology, which now has a full complement of staff under the leadership of the highly regarded cardiologist, Prof Makoali Makotoko.
 
4. Four master’s programmes received provisional accreditation, which means that (a) these programmes continue to be taught and (b) outstanding issues, such as inadequate staffing, must be fixed. It does not mean that these programmes will be or are likely to be discontinued.
 
5. It is a fact that staff retire or resign in all schools and departments of any university. It is also true that these departures offer opportunities to bring new academic and professional staff into the UFS. In fact, for the first time virtually every department in the School of Medicine now has a full-time Head of Department and 46 new staff were appointed since January 2015.
 
6. The main employer of academic staff in the School of Medicine is the provincial Department of Health (DoH), and the UFS works very closely and persistently with the Free State DoH to ensure that vacant posts are filled.
 
7. The attacks on the integrity of the outgoing Head of the School of Medicine were malicious. Prof Alan St Clair Gibson did not resign ‘overnight’; his departure has nothing to do with the accreditation status of the School – in fact, he can be proud of this achievement; and he effectively takes up a promotion post in New Zealand as academic Dean at the University of Waikato. Prof St Clair Gibson will be remembered for his leadership in transformation, especially regarding staff and student equity in the School of Medicine, and for securing our programme accreditation. For this, the university is deeply grateful.

Released by:
Lacea Loader (Director: Communication and Brand Management)
Telephone: +27(0)51 401 2584 | +27(0)83 645 2454
Email: news@ufs.ac.za | loaderl@ufs.ac.za
Fax: +27(0)51 444 6393

 

 



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