AND SO THE CAKE CRUMBLES
We are now paying 12% + of our hard-earned cash into the pockets of our government employees. This simply means that twelve SA Rand of every one hundred SA Rand recovered through taxation, is not available for schools, roads, hospitals and other urgently required development.
We are ranked one of the TOP five countries in this regard – this is not a GOOD top five, it means that we are amongst the WORST FIVE COUNTRIES in this respect, probably placing us in the same league as Zimbabwe and some of the South American states.
Government officials quote Rand values earned for exports. (you can multiply the value of one British pound by a factor of 17+ to get the Rand value). This makes things sound terrific. On the other hand, if we have to import, the Dollar, Euro or Pound values are quoted. (The Rand value divided by 17+ to convert back to British Pounds)
When taking into account that our kids are taught only rudimentary mathematical skills and are expected to know only 30% of this rudiment to get a pass, most are unable to interpret or distinguish between the monetary values and are lead to believe that the RSA is competing well at international level. (These kids will be voting in the upcoming election)
The cake crumbles some more and soon our esteemed leaders will say “let them eat crumbs” (if anything is left)
We have not seen any new tertiary education establishments arise since the inception of our Democracy twenty years ago. (This is good for the government as very few are educated to the level where they can actually oppose them.)
The population on the other hand has grown by a factor of five to ten or so. We have certainly taken on about half of the Zimbabwean population, many hundreds of thousands of Mozambicans, Malawi’s, Nigerians, Pakistanis and so on, many unaccounted for by the local officialdom.
We are now getting to the stage where we will have to start using a *Cyclotron to divide the cake in order that there will be enough molecular particles to honor the command of our government leaders.
(The “let them eat Cake command”)
Weakening of a monetary unit is almost always an indicator of poor country management (better name for government) and specifically, poor fiscal policy and planning. It is a short-term solution to boost exports – providing that you can compete in quality and price with other countries. It rarely materializes as the know-how has already fled down-under or further abroad due to draconian AA and BEE policies, forcing them to look for greener pastures. Without the required skills-in-situ, product quality and prices are negatively affected. The result being the inability to compete on the global market.
“Low comparative currency values will always attract investment from countries with stronger currencies.” This statement is only true if the political and social environment as well as internationally accepted norms pertaining to property ownership etc. is honored.
Scream NATIONALIZATION and investors will quietly start moving their assets out of the country. THERE WILL CERTAINLY BE NO INGRESS OF INVESTORS. Those who do invest during times like this surely have other, more sinister motives. I can name one for sure but I do not fancy taking a 7.62 mm bullet from a cheap AK produced en-masse, in the country referred to.( the name starts with a “C”)
An investor friendly environment with fair and just labor legislation, which can place the host country in the position of a desirable destination for investment opportunities, will certainly help a lot in providing much needed cash for the purposes of development and job creation.
On the other hand, Threats of Nationalization of mines and other assets, belonging to Multinational INVESTORS, poor management, draconian labor laws, high crime and corruption, expensive transport, poorly maintained rail transport facilities, expensive, infrequent electricity and water supply, unjust employment policies and so forth will not attract any investment even if the comparative values of the investor’s currency is worth a million times our beleaguered SA Rand. (Almost forgot E-Toll)
AA and BEE for the sake of forcing the private sector into employing incompetent people based on the color of their skin is not only racist but also counter-productive. It simply pushes the price of our products for export, above the price that importers are willing to pay. The two major factors are affected negatively, namely Quality and Price. Couple this to minimum wage laws and generally poor work ethics and we are totally unable to compete with countries like Korea. Taiwan, etc. where true work ethics are fostered and management positions are obtained through hard work and education, not government policy.
The window period for reversal of the downward spiral is still open but we are rapidly moving into that well known sorry state where we will be relying on aid from well run countries to feed the nation.
It is a sorry state as we have the potential to feed the whole African continent and have some product left over.
The Zimbabwean model proved that the BEE and AA concepts are unworkable, a billion times over. If we gaze to the North, beyond Zim, we will find that the same concepts killed off most of the economies on this poor continent.
The will of the cannon fodder, cake molecule munching populace, is only fostered until their puppet master is in power. (The aim normally being to be in this position for life) The tax collection system is upgraded to match and even surpass that of many “Developed” entities and the “suction” process begins.
Pity is that the Cake Hoarding Monster does not know when to stop or how to curb its’ appetite.
Soon, the streets are littered, once, majestic looking buildings become the dwelling of thousands and the facades become streaked with excrement as the machinery to process the smelly stuff becomes unserviceable, (technicians working in OZ) forcing people to chuck the brown stuff out through windows. Infrequent rain brings temporary respite from the “aroma” permeating everything but in the process, “the cake residues” are washed into storm drains and eventually into rivers and dams. The water poor country is robbed of its most precious commodity, potable water. In short, everything turns to S H ONE T. His Excellency is unperturbed, he has cake and imported bottled H2O.
Sounds sort of familiar, doesn’t it. It started in Kenya 50 years ago and has at last reached the Southern tip of Africa.
The “corrective” action named CHM* BEE and AA, that ruined all but a few of the African states is now alive and well and living in South Africa.
* Cake Hoarding Monster