http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.19Change: -0.02
R/$ = 11.60Change: 0.05
Au 1196.03 $/ozChange: 21.62
Pt 1217.00 $/ozChange: 26.00
 
 
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 Contact Us
 
 
 
Article   Comments   Other News   Research   Magazine  
 
 
Sep 28, 2012

Obvious questions, no obvious answers

Back
Africa|Education|Africa|South Africa
Africa|Education|Africa|
africa-company|education-company|africa|south-africa
© Reuse this



In the post-Marikana era, new questions are being asked about inequality, with a particular spotlight being thrown on to the issue of executive remuneration and the size of the gap between the highest and lowest paid employees within a company.

It’s not a new theme and it is most definitely not an uncom-plicated theme. But there is a definite sense of unease, even revulsion, about current executive-pay levels and the method-ologies used to inform these packages. There is particular anger that most bonus schemes seem to be entirely immune to poor performance.

Without doubt, this is not a uniquely South African dilemma. Serious questions are being asked globally about the impact inequality is having on economic performance and on social cohesion.

For instance, the ‘Trade and Development Report, 2012’, which was published by the United Nations Conference on Trade and Development (Unctad) earlier this month, dedicates a great deal of attention to the issue of inequality, its impact on growth and possible remedies.

The analysis shows that, over the past 30 years, income inequality has increased within countries and that in several instances, the richest one per cent of the population now accounts for 10% to 20% of national wealth.

One of Unctad’s key messages is that “there is nothing natural about rising inequality that requires society to allow or accept it, nor does it improve the efficiency of market outcomes”.

In fact, the authors assert that the current weak global economic performance has its roots in faltering demand, which, in turn, can be attributed to issues such as wage compression, deleveraging and unemployment.

There will be no significant recovery, Unctad avers, until low- and middle-income groups achieve sufficient earnings to spend on consumption, which will create the demand required to drive modern economies.

In other words, it argues that dealing with inequality through more even income distribution will be critical to future economic performance.

This argument is premised on a view that high inequality deprives people of access to education and credit, and prevents the expansion of domestic markets. “Thus, a better income distribution pattern would help stimulate and sustain economic growth in the short run and would provide stronger incentives for investment, innovation and job creation in the long run.”

Given the extreme nature of South Africa’s wealth–poverty divide, it is only natural that this issue should receive greater attention and should be a top-of-mind priority for government, business and labour.

But there is also a need to grapple with issues of remuneration and inequality within the highly contradictory context of skills shortages amid chronic unemployment. In other words, we should not expect the answers to be easy to come by, nor that the remedies will be straight- forward to formulate and implement.

Edited by: Terence Creamer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Editorial Insight News
There is a sense of fatigue across South Africa as 2014 draws to a close. The year has been a difficult one for business and for citizens. The external environment remains problematic, with South Africa’s key trading partners performing unevenly and with commodity...
Some visibility may, at last, be emerging around South Africa's approach to the highly complex issue of beneficiation. It is understood that the Mineral Beneficiation Action Plan (MBAP), which is currently in draft form, should be finalised by the end of March....
Article contains comments
Given the attention, disproportionate or not, being given to nuclear energy in South Africa, it was interesting to see what the International Energy Agency (IEA) had to say about the future of technology in its World Energy Outlook 2014 (WEO-2014), released earlier...
Article contains comments
More
 
 
Latest News
A consortium of nine banks has restructured the financing for the Gebze-Izmir highway project in Turkey to $5-billion, while the maturity was extended to 15 years from a previous seven, banking sources said. The consortium consists of Deutsche Bank and eight Turkish...
Germany's HeidelbergCement has clinched a deal to sell its Hanson Building Products business to private equity firm Lone Star Funds for $1.4-billion to reduce its debt. Up to $100-million of the takeover price will be payable in 2016, depending on the 2015...
Global mining equipment and services provider Sandvik Mining has recently provided one of Africa’s largest contract miners Aveng Moolmans with five diesel-powered drill rigs for use on the Nkomati nickel mine, in the northeast of South Africa, near Machadodorp in...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
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