http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.82Change: 0.01
R/$ = 14.65Change: -0.04
Au 1286.35 $/ozChange: -0.90
Pt 1066.00 $/ozChange: -1.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 14, 2012

Activist, ethical State needed to address SA’s inequality problem – Netshitenzhe

Back
Joel Netshitenzhe discusses the efficacy of the developmental State model in addressing inequality in South Africa. Camerawork: Nicholas Boyd. Editing: Darlene Creamer.
 
 
 
Johannesburg|Africa|Education|Efficiency|System|Africa|South Africa|Services|Joel Netshitenzhe
|Africa|Education|Efficiency|System|Africa||Services|
johannesburg|africa-company|education-company|efficiency|system|africa|south-africa|services|joel-netshitenzhe



The prevailing call for the transformation of South Africa into a developmental State should not be considered a silver bullet for the country’s enduring socioeconomic inequality and poverty alleviation issues.

Addressing attendees at the memorial colloquium of the assassination of writer and activist Ruth First, in Johannesburg, last month, Mapungubwe Institute executive director Joel Netshitenzhe stressed that, while high rates of economic growth, coupled with lower unemployment levels, may reduce absolute poverty, it would not impact on the lasting challenge of inequality.

“South Africa represents extreme manifestations of inequality, which are far more prevalent and systematic than in other States. This reality, coupled with the historical racial and class features of our society, makes it a highly complex issue,” he said.

Netshitenzhe said that interracial inequality had decreased during the first decade of South Africa’s democracy, as black South Africans were able to break through the glass ceiling of apartheid.

However, intragroup inequality within the black community increased in parallel, as only a fraction of its members were able to exploit the new opportunities.

Moreover, once the base effects of democracy had manifested during the first decade, interracial inequality widened from 2004 to 2009 during a period of high economic growth.

“This was a direct result of the rich being better positioned to take advantage of a burgeoning economic sector than the poor,” he noted.

While Netshitenzhe accepted that higher rates of economic growth and increased labour absorption mechanisms, as encouraged in the developmental State model, would reduce absolute poverty, he believed that an activist State, as an instrument of redistribution, was required to reduce relative poverty, or inequality levels.

He said that this approach would include the absorption of marginalised groups into economic activity, the provision of free and good- quality education as well as dedicated skills development efforts.

In addition, South Africa would be required to institute free or subsidised high-quality public services for the poor, place restrictions on executive remuneration packages to boost the distribution of wealth and implement a minimum wage policy and inflation limit.

“Progressive taxation would also go some way towards addressing inequality, but for this system to retain legitimacy, the efficiency and ethical conduct of the State, particularly in the administration of the higher income brackets, are paramount,” he pointed out.

He added that measures to address spatial settlement patterns in relation to areas of high economic activity were also required.

Netshitenzhe said that dealing with inequality entailed a reversal of South Africa’s ‘trickle up’ economy, in which the perpetuation of vastly divided socioeconomic classes was observed, and cited a recent statistic in support of this statement.

“Twenty per cent of the poorest citizens of this country earn only 2.3% of the national income, while 20% of the richest earn 70% of the national income,” he concluded.

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
Updated 2 hours 55 minutes ago A new World Bank report warns that some regions of the world, including parts of Africa, could see their growth rates decline by as much as 6% by 2050 as a result of water-related losses, with water scarcity also exacerbated by climate change. Titled ‘High and Dry:...
Tourism Minister Derek Hanekom
South Africa's tourism sector expects strong growth in 2016 after some strict new visa rules that reduced the number of arrivals in the previous year were lifted, Minister Derek Hanekom said on Tuesday. South Africa last year relaxed some of the visa rules it...
The seasonally adjusted Barclays Purchasing Managers’ Index (PMI) improved to 54.9 in April, its highest level since August 2013. This was compared with the 50.5 points registered in March and much higher than market consensus of 50.2.
More
 
 
Latest News
Updated 2 hours 45 minutes ago A new World Bank report warns that some regions of the world, including parts of Africa, could see their growth rates decline by as much as 6% by 2050 as a result of water-related losses, with water scarcity also exacerbated by climate change. Titled ‘High and Dry:...
Human Settlements Minister Lindiwe Sisulu
Updated 7 hours ago The Department of Human Settlements (DHS) has approved 101 “catalytic” public–private partnership (PPP) projects, valued at around R340-billion – more than half of which would be sourced from the private sector – that would mobilise and coordinate private-sector...
Updated 7 hours ago By 2050, agricultural productivity in Africa has the potential to increase by 70%, through technological innovation leveraged by the Internet of Things (IoT). This would meet the continent’s growing food demand which, based on population growth, is set to grow by...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149