Broken States

By pjain      Published Jan. 31, 2021, 3:34 a.m. in blog Geo-Politics   

South and Central America

Africa

Libya

South Africa - "So called rich in resources, run for rich and cronies, poor in actuality"

Nigeria

South Africa -- XFR

Timeline, History

2000? peaceful transition to democracy, many obstacles hinder this walk to freedom.

South Africa's welfare

A so-called benevolent state has used substantial populist fiscal revenue to expand social assistance - 25% on Welfare Dole - 3% of GDP spent

  1. Rural, Poor Urban need economic growth needs to be more inclusive of those in micro-enterprises, rural areas Using the national poverty line of $43 per month (in current prices), 47 percent of South Africans remain poor. In 1994, this figure was 45.6 percent.

  2. Massive UE 25% - hurting the most important young and jobless.

  3. Massive Elite "capture of state" Persists after Sahara Guptas kicked out!

  4. Inequality persistent. The Gini coefficient, is at 0.69, marking the country as one of the most unequal in the world.

  5. Some Progress under Welfare Regime. South Africans with access to formal housing (77 percent), electricity (84 percent) and running water (72 percent) has increased drastically since 1994.

  6. Little development or GDP Growth Growth rates stuck at 2.5% rarely exceeding 5 percent. This is just to low growth so despite 70/73 quarters of positive growth since 1994, the net impact on poverty, inequality and unemployment remains inadequate.

  7. DOMINANCE BY LARGE COMPANIES. High growth rates are unachievable in part because the structure of South Africa’s economic growth path is dominated by large firms to the exclusion of the informal sector

  8. Work Rules, POLICIES TO FAVOR unions and upper skilled workers, and hurt the unemployed 25% masses. The returns from economic growth favor the organized, the educated, the highly skilled and the well connected. This unequal growth path is sustained through product and labor market regulations that unintentionally protect insider employers and employees alike.

  9. SRC Economic Inequality Is a Major Obstacle to Growth in South Africa - NYTimes.com


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