http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.51Change: 0.08
R/$ = 10.51Change: 0.04
Au 1288.03 $/ozChange: -7.54
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
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 28, 2012

Some will stay marginalised – economist

Back
Education|Standard Bank|System|Europe|China|South Africa|United States|Goolam Ballim
education-company|standard-bank|system|europe|china|south-africa|united-states|goolam-ballim



A section of South African society will forever be marginalised, Standard Bank chief economist Goolam Ballim said on Tuesday.

"There is a fair section of South African society that will forever be outside of the formal employment system, simply because they do not have sufficient capabilities to participate in the economy," he said.

Ballim said this sector would be forever excluded because their intellectual capabilities were crippled during the apartheid era.

"If you have been exposed to an education system that did not render you able to participate in a modern economy – which requires fairly sophisticated skills – the chances are you will not be able to get access to, let alone the opportunity of, decent pay, or a job that can satisfy middle-class aspirations," he said.

This was why government had to provide social grants, in order to mitigate the legacy of the apartheid era.

Ballim was speaking at a briefing to highlight global economic problems and their impact on the South African economy.

He said the European economy would experience weak growth for a long time.

"Over the next 20 to 30 years, Europe is going to see a roughly 14% shrinkage in its workforce," he said.

At the same time, the proportion of youths not yet working would rise.

Poor economic performance in Europe and the United States would impede global economic growth, Ballim said.

In the past decade, China had been able to achieve double digit growth, but it would be hard for the Asian economic giant to reach its targeted eight percent growth in current global economic conditions.

"China has grown to become the world's second-largest economy. It has a role to play, even though it was not the cause... of the crisis. It has a role to play in providing mitigating measures that impact the rest of the world."

China had grown to be South Africa's largest trading partner over the past decade, surpassing Europe and the US.

It accounted for 12.5% of South African exports.

Commodities made up two-thirds of South African exports, and China was the largest importer of local commodities.

Ballim said China's relations with South Africa extended far beyond the commodities it bought from South Africa.

"If China grew at six percent, it would encourage a recession in the commodities markets," he warned.

He said weak growth in China, Europe and the US – which made up two-thirds of global GDP – would translate into slower growth in the global economy.

South Africa had performed better than other emerging economies before the financial crisis. But this had changed, and the country was now lagging behind other emerging markets.

Ballim said household spending in South Africa had slowed down and would "reinforce its slowing momentum".

Household spending had grown by six to seven percent a year before the crisis, but had not picked up during the economic recovery to stimulate further growth in South Africa.

On fixed investment, which accounted for 20% of GDP, Ballim said the country had recently depended on parastatals.

Two-thirds of investment which emanated from the private sector was static.

On the recent Marikana mine shooting in North West, Ballim said: "The events in Marikana must stand as a scar on the conscience of every single South African."

Edited by: Sapa
Comment Guidelines
 
 
 
 
 
 
 
 
Other Economy News
Implementing big data analytics processes and enabling business intelligence systems are not information technology (IT) exercises, and require active involvement of relevant parts of a business to ensure the resultant capabilities meet future operational...
Business analysis systems expose the true performance of a business to enable daily operations to be cognisant of business performance and conditions, and executives to test and validate their strategic concepts using real performance data, says business intelligence...
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of South Africa’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
More
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
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...
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
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
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)...
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...
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...
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