http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.50Change: 0.09
R/$ = 10.50Change: 0.06
Au 1294.90 $/ozChange: -0.67
Pt 1413.00 $/ozChange: -15.50
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
Article   Comments   Other News   Research   Magazine  
 
 
Sep 28, 2012

Obvious questions, no obvious answers

Back
Education|South Africa
education-company|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
 
 
 
 
 
 
 
 
Other Editorial Insight News
Updated 7 hours ago Trade and Industry Minister Dr Rob Davies took the high road when responding to news that Nigeria had officially surpassed South Africa as the continent’s largest economy. Following a rebasing of its gross domestic product (GDP), Nigeria’s statistician-general...
Article contains comments
Besides frighteningly frank warnings (which some have disparaged as being apocalyptical) about the threat posed by climate change to everything from food security to human health and ecosystems, one of the stand-out themes from the latest Intergovernmental Panel for...
With South Africa poised to open the way for shale gas exploration, it was interesting the gain insight into the issue of hydraulic fracturing (fracking) from UK special representative on climate change Sir David King. King, who was born in Durban in 1939 and...
Article contains comments
More
 
 
Latest News
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
ANC SG Gwede Mantashe (L), chairperson Baleka Mbete (C) and President Jacob Zuma (R)
The creation of a small and medium enterprises department is very likely, African National Congress national chairwoman Baleka Mbete said on Thursday. "We are talking about a focused department looking at small and medium businesses because the departments must be...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
Updated 7 hours ago The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
Updated 7 hours ago The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
Updated 7 hours ago The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
Updated 7 hours ago AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
Updated 7 hours ago South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
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