The DA opinion is valid. Today we hear the economy shrank by a further 3%. That's bad news. We also hear Africa is lagging behind the rest of the world in the global recovery. Strange, it was also apparently the least affected. So they said. If that's true, why would Africa be lagging?
The "worst crisis" since the Global Depression turns out to have been perhaps the shortest as well. Many economies are already chugging back into life. In Australia, the only economy not to go into recession, the job losses have levelled off, companies are beginning to hire and growth is forecast, so much so inflation has become a worry and they are contemplating RAISING interest rates to keep the rebound in check. That's a good sign. But it needed intervention and clever thinking. Plus it does help that the government officials are not robbing the coffers blind and actually doing what they are paid to do.
Back in noddyland South Africa, the recession has been deeper because we have a very inflexible and unfriendly business environment, not to mention the retardation caused by unwieldy and unworkable social experiments. But you can't get the 'tards at the ANC to understand this can you? It's going to be a long road back to recovery, if ever.
GDP data: The real question is how South Africa will recover from the recession
South Africa will take much longer to recover from the current economic recession because of a host of ANC induced problems. The Q2 GDP figures clearly indicate that South Africa is firmly in the grips of the global economic downturn, but the long term prognosis for South Africa under ANC economic policy is a cause for concern - we will take longer to recover because of our structural problems. These problems are not due to the economic cycle, but entirely to a misguided ANC economic policy, and if not corrected, they will persist beyond the economic recovery and dampen optimal economic growth. In order to address these problems, the following needs to happen:
- South Africa's labour market needs to be liberalised in order to encourage employment creation
- SOEs that waste taxpayers' money need to be taken to task
- Handouts to industries that costs billions of rand each year -- without fostering sustainable sectors -- need to be halted
- Corruption throughout government spheres, which is drastically limiting the provision of basic service delivery, needs to be tackled and austerity measures need to be actually implemented
- SETAs need to be scrapped and an apprenticeship system needs to be reestablished