robt
03-01-2012, 05:18 PM
http://latitude.blogs.nytimes.com/2012/02/29/changing-south-africas-welfare-programs-can-help-economy/
South Africa is the only country in the world that has fewer employed workers than people on welfare, according to the economist Mike Schüssler.
...
In his annual budget speech last week, Minister of Finance Pravin Gordhan forecast for South Africa a growth rate of 2.7 percent for 2012 (and 3.6 percent and 4.2 percent for the two years after that). This means that South Africa’s projected growth is below the I.M.F.’s projections for both the world (3.3 percent) and sub-Saharan Africa (5.5 percent). It is also below projected growth levels for Brazil, Russia, India and China, the BRIC countries with which South Africa supposedly is on a par. This country is an economic impostor: it punches well above its weight in international forums.
...
Only 6.3 million South Africans meet the threshold for paying income taxes, whereas some 16 million receive some form of welfare benefit, like child support and old-age pensions. A large part of the country’s annual budget is earmarked for social spending.
Some very interesting stats and info, a very nicely written article.
The only bit I don't really agree with is:
Yet welfare is a necessity. South Africa is one of the most unequal nations on the planet, a legacy of apartheid. The government has a duty to care for those whose poverty is the structural result of historical conditions beyond their control.
Apartheid fell away 20 years ago, I think we've as a nation have had enough time. Seems like everytime there is some sort of failure to compete we drag out the Apartheid bogeyman as a way to excuse current failures.
Time to face up to reality and stop looking back.
South Africa is the only country in the world that has fewer employed workers than people on welfare, according to the economist Mike Schüssler.
...
In his annual budget speech last week, Minister of Finance Pravin Gordhan forecast for South Africa a growth rate of 2.7 percent for 2012 (and 3.6 percent and 4.2 percent for the two years after that). This means that South Africa’s projected growth is below the I.M.F.’s projections for both the world (3.3 percent) and sub-Saharan Africa (5.5 percent). It is also below projected growth levels for Brazil, Russia, India and China, the BRIC countries with which South Africa supposedly is on a par. This country is an economic impostor: it punches well above its weight in international forums.
...
Only 6.3 million South Africans meet the threshold for paying income taxes, whereas some 16 million receive some form of welfare benefit, like child support and old-age pensions. A large part of the country’s annual budget is earmarked for social spending.
Some very interesting stats and info, a very nicely written article.
The only bit I don't really agree with is:
Yet welfare is a necessity. South Africa is one of the most unequal nations on the planet, a legacy of apartheid. The government has a duty to care for those whose poverty is the structural result of historical conditions beyond their control.
Apartheid fell away 20 years ago, I think we've as a nation have had enough time. Seems like everytime there is some sort of failure to compete we drag out the Apartheid bogeyman as a way to excuse current failures.
Time to face up to reality and stop looking back.