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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

Knific Duo from US lecture and perform at OSM
2017-05-12

Description: ' 000 Knific Duo Tags: Knific Duo

Profs Tom Knific and Renata Artman Knific from the Western
Michigan University School of Music are visiting the Odeion
School of Music at the University of the Free State.
Photo: Supplied

The renowned Knific Duo will not only perform at the University of the Free State (UFS) soon, but will also share their expertise at the Odeion School of Music (OSM). The duo, consisting of Profs Tom Knific and Renata Artman Knific, from the prestigious Western Michigan University School of Music, are presenting a masterclass series hosted by the OSM Concert Agency. The series takes place from 10-14 May 2017 and the concert on 16 May 2017.

Concert features local pianists

The first half of the concert on 16 May 2017 will present a programme leaning towards the classical genre. Apart from three works composed by Prof Knific, it will also include two movements from the Violin Sonata by the Hungarian composer Miklós Rózsa. 
In the second half Prof Knific will collaborate with two local pianists, the legendary jazz pianist, composer and music educator, Noel Stockton, and the talented Andile Qongqo, and for a carefully curated jazz programme mainly from the oeuvre of Prof Knific. Random Dreams, a work composed by Stockton will also be included.

Well-known around the world

Prof Knific (double bass) is a Professor at the Department of Jazz at the Western Michigan University School of Music. He has been principal bassist of orchestras from the US to Europe and performed as a soloist and in chamber music festivals around the world. He also is a former president of the International Society of Bassists.

Prof Artman Knific (violin) is a professor of violin at the same institution. Her international career began in London at 21 when she joined the English Chamber Orchestra. Tours of Europe, North and South America and Asia followed where she collaborated with artists such as Herman Bauman and Isaac Stern. She has worked with conductors such as Daniel Barenboim and Christoph Eschenbach, and recorded records for EMI, Decca, and CBS labels.
 
Date: 16 May 2017
Time: 19:30
Place: Odeion (Bloemfontein Campus)

Musicians interested in masterclasses can contact Ninette Pretorius at  pretoriusn@ufs.ac.za

 

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