P e r s p e c ti v e

extract from MMS Service 11-Apr-02

Time for South Africa to wake up !? 11-April-02
     
From an economic perspective it can be argued that South African Policy makers are rather inept. One just has to look at the latest developments of the Rand commission to come to any conclusion. The SARB clearly has lost touch with the financial markets and has made numerous blunders to the detriment of the country as a whole. We have witnessed that exchange
controls have no effect in the transfer of capital, nor do they ahve a stabilizing effect on the currency and rather than punish these players one should look inward to see where the problems arose. Investment Bankers are paid
to look for the most attractive way of raising capital and reducing risk, South Africa's exchange controls provide the perfect stomping ground for exploitation for profit. It is not only in this arena that mistakes have been made, FDI which our politicans scream for everyday has alluded us
why?. Well as an investor would you place your confidence in a country with restrictive labour laws, corrupt officals and a criminal sector that acts with impunity.
However there is hope, the Government need only look to the Far-East for some direction. The smart money is moving into emerging Asia at a fair rate. This is due in part to their ability to adapt. After the 1997-1998 crisis there was a robust and remarkably quick recovery in
these countries, the same can be said for the recent global hiccup. They welcome change and encourage competition. They essentially have free economies, they have a willing and able labour force which is attractive
to any export based concern. There is a growing middle class sector and their capacity for consumption of goods has increased.
South Africa and Africa as a whole needs to adjust their attitude. The continent cannot move forward with this feeling of being hard done by. South African labour and economic must change for the benefit of the country, unions have a stranglehold on the economy - this must stop for the better of all South Africans. When jobs are created crime will reduce as poverty reduces. Free up economic policy and investors will see the region anew.

 

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e c o n o m e t r i x 11-April-02