South Africa is one of the emerging markets, a member of BRICS and the second highest GDP in Africa next to Nigeria. With a GDP of $384.4 Billion and a GDP growth rate of 2.5% (The World Bank) Obtaining economic growth is an objective of most countries and South Africa not excluded. In this essay I will discuss how this can be achieved by South Africa through export led growth despite the obstacles currently faced by the country.
Firstly I examine the current economic conditions and policies in place. Followed by how exports can achieve growth and other theories which can be used instead. In addition comparing South Africa to other African and emerging countries which have taken the same route. China one of BRIC members has also developed through export led growth and heavy industrialization of its economy but to compare the two we must look at the similarities.
The current economic environment in South Africa according to the state address to the nation by President Jacob Zuma on the 13th February 2014 is faced with poverty, inequality and unemployment. This has been a recurring theme is South African history but what has been done to solve these problems. Jacob Zuma states that the government will focus on Education, health, the fight against crime, corruption and rural development and land reforms in order to solve these problems.
In order to reduce poverty and unemployment more jobs need to be created. In the state of the nation address Jacob Zuma indicates several sectors as job drivers namely tourism, agriculture, green economy, infrastructure development and manufacturing. These are sectors which have a big impact on the GDP of South Africa however South Africa is faced with structural unemployment which is a mismatch bet...
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... can provide opportunities for growth and development not only for South Africa but also for neighbouring countries.
The National Development plan is an optimistic scheme to Develop South Africa with certain pitfalls but investing domestically will support export for the future. In addition with the IPAP and AIS the export of value added goods may increase to a level where South Africa may be less dependent on commodity goods.
South Africa has a high and rising government debt this is resolved with increase in international trade revenue and decrease in expenditure. Moreover with increase in jobs there be a larger amount of people that will pay taxes adding addition revenue. There is a weak international demand however with the recovering process continuing and the development of emerging markets and developing countries in Africa trade opportunities are present.
Imperialism is a policy based on the ideas of conquering less industrialized countries in order to gain more power, wealth and to increase a nation’s cultural influence. Imperialism took a tight hold on the modernized world after the industrial revolution, as more developed countries through military force started to conquer surrounding countries, and quickly became a global policy. Imperialism left a lasting affecting on the whole world and the result of the idea was not always for the best. An example of such a case was seen in South Africa where due to British rule, apartheid and segregation grew rampant.
Priscilla. “The World Economy and Africa.” JSpivey – Home – Wikispaces. 2010. 29 January 2010. .
"News." Africa Continues to Grow Strongly but Poverty and Inequality Remain Persistently High. N.p., n.d. Web. 26 Nov. 2013.
Overall Central Africa’s dependence on agriculture could improve the wellbeing of the people but a long history of corruption, violence, and prevalent transportation issues have hindered an improvement in the economy resulting in poverty among the region. Poverty will not subside unless these issues are dealt with and improved.
Poverty is one of the greatest problems facing South Africa. South African families live in very unsatisfactory conditions. The South African government works hard to bring down the rate of poverty but it also seems to increase as they try.
Article 1 It is about the development bank of Southern Africa. It is helping by supporting the local government sector in South Africa with financing and implementation of infrastructure projects. Its helps with infrastructure for new building as well as refurbishment. Its responsibility is providing basic salary services such as water, sanitation, electrification, waste management and roads to local communities. Increasing levels to access to grid based on electricity as well as clean portable wate...
In 2002, a study was done called the Human Development Report concluded that the countries with the lowest levels of Human Development Index scores were all landlocked countries. Trade is the biggest reason why these countries has a continually battle to grow their economy. Landlocked countries have to travel long distances to be able to reach ports for international trading. As a result, many landlocked countries would have to go through either one or two neighboring countries. These relationships always favor coastal countries because they will place high transportation costs on landlocked countries in order to gain a distant advantage over them. If we look at the statistics from, Human Development Report 2002 the ratio of transportation and insurance to value of exports for Mali is 35% compared to South Africa which is 8%. This is nearly 4 times the amount which is a costly disadvantage for Mali. Growth of an econo...
Thus, all these problems like poverty, education, transport, health facilities is creating problem for African people to develop and live a healthy life. It is also affecting the economy of the country and therefore government and many other organizations should take steps to look after all these issues for better development of Africa.
Artadi, Elsa V., and Xavier Sala-i-Martin. The Economic Tragedy of the XXth Century: Growth in Africa. Cambridge, MA: National Bureau of Economic Research, 2003. Print.
Gold mining in South Africa has a large impact on the environment, the economy and social structure in South Africa. The environmental impact of gold mining on the environment includes water, air and noise pollution. The mining industry in South Africa is one of the largest in the world. It provides jobs for hundreds of thousands of people in the mining industry alone. The mining industry also indirectly provides jobs for about 400 000 with the goods and services that the mines require to run successfully.
South Africa has an agricultural economy made up of two sectors, commercial farming and subsistent farming. Most of the income comes from commercial farming however the potential for most of the employment lies within the rural or subsistent farming. The agricultural sector of South Africa has an important role in creating a strong economy and creating one that is more stable. With the right handling of the sector it can provide the basis for this economic growth and help reduce poverty and the growing divide between rich and poor. Income for the lower class would be increased and greater employment opportunities created in the agricultural sector.
As mentioned above, South Africa has been working on improving the lives of people. The Reconstruction and Development Program is one of the many that have been implemented that work on improving the life styles of people in South Africa. This is one of the strategies that has been very successful and is still standing as is. It is through this program that the lives of the many South Africans living in rural areas will be made
Economic development is highly dependent on the natural resources for food and energy production, which inputs to manufacturing, and to absorbing wastes and pollutants. Thus, there is a high dependency on farming. However, South Africa is not rich in agriculture resources; ...
The main cause of poverty in South Africa is the lasting effects of apartheid. People didn’t get proper education and skills training during the apartheid era. As a result, most of them are unemployed because with the lack of proper education and skills, they can’t find jobs that will give them the means to a better life.
For the passed decades questions came up about globalization impact on civilization such as, South Africa have been a concern to many people around the globe. Based on, agriculture, politics, business affairs, decisions making, animals, and environmental changes been at the frontline of discussion concerning this region. The purpose of this research wills examine the impact of globalization on this society that affects all spectrums from businesses to human begins lives, animals, and environment in this region. Also, the awareness of the financial growth is unstable and irregular across the South Africa regions. The monetary increase has been rigorous just in 11 rich nations, which do not include South Africa. While, 89 other countries represent 1.0 billion citizens or one quarter of the planet populations are economically poorer off than they were five or more years ago like South Africa. Sub-Saharan Africa requires greater focus on their poverty, so the issue is who needs come first poor or rich. In this research paper it will go more in details about these problems that South African faces each day to survive.