China Roars

[Dave A]

Trouble is the government and unions expect SA manufacturing to fight the good fight with both hands tied behind their back.

You must pay higher salaries than your competition.
You must accept lower productivity than your competition.
You must provide a far safer workplace environment than your competition.
You must provide medical and retirement benefits.
You must provide basic education to illiterate and semi-literate workers.
You must make social responsibility contributions.
You must reduce mechanisation and increase reliance on labour to increase employment and reduce electricity consumption.

It's like insisting someone must try to win a boxing fight by headbutting the opponent's fist.

We've either got to get really smart and productive (like Germany), or we've got to go the route of the Asian tigers.
I just can't see manufacturing cutting it the way we're being forced to do it at the moment

[Blurock]

The problem seems to be that we always want to take the easy way out. Are we just lazy or can we not see the greater benefits for our economy? (This has nothing to do with xenophobia, only long term economics). Import from China for R10 less with the least effort. Don't employ any staff and pocket the returns without any benefit to our communities. (and screw the tax man)

That is not how wealth is created. If a small number of the population enrich themselves at the cost of the rest, the inequality will catch up with us (already has) and create social problems on a massive scale that will eventually get out of hand. (already there!) Examples are Brazil, Russia, India, China, (BRICS countries!) Pakistan, Arabian and some Eastern countries etc. The French Revolution happened because of the inequality between the rulers and the people. Many revolutions were started because of inequality, not just politics.

If we really want to grow SA's wealth to the benefit of all its people, we should stop talking about nationalisation and stop exporting our raw materials without any beneficiation. Beneficiation can be the catalyst for development of new industries and create opportunities for entrepreneurs. E.g. iron ore can be turned into steel. Gold and diamonds can be turned into jewellery and then exported. The beneficiation can increase the value of exports tenfold.

The manufacturing sector provides a locus for stimulating the growth of other activities, such as services, and achieving specific outcomes, such as employment creation and economic empowerment. This platform of manufacturing presents an opportunity to significantly accelerate the country's growth and development.

Mining for instance, is a big catalyst. It creates opportunities for a number of industries such as transport, machinery suppliers, workshops, artisans and many more. If we keep on extracting our minerals without beneficiation, we will never reach our full potential and remain a beggar country that has to rely on the goodwill of foreign countries. Is that any different from colonisation?

[aaronlove]

Trouble is the government and unions expect SA manufacturing to fight the good fight with both hands tied behind their back.

You must pay higher salaries than your competition.
You must accept lower productivity than your competition.
You must provide a far safer workplace environment than your competition.
You must provide medical and retirement benefits.
You must provide basic education to illiterate and semi-literate workers.
You must make social responsibility contributions.
You must reduce mechanisation and increase reliance on labour to increase employment and reduce electricity consumption.

It's like insisting someone must try to win a boxing fight by headbutting the opponent's fist.

We've either got to get really smart and productive (like Germany), or we've got to go the route of the Asian tigers.
I just can't see manufacturing cutting it the way we're being forced to do it at the moment

Your word is very profound. These can help us do better business. I think the Chinese market very well. Their government has a good policy to investors, and that labor is very cheap. This can create more value for us.

[Dave A]

I suggest Singapore's great trick is it has positioned itself as a trading centre pretty much from the outset. Rather than a being a competitor, China's progress probably provides you with even greater opportunities to advance your strength.

[Blurock]

I suggest Singapore's great trick is it has positioned itself as a trading centre pretty much from the outset. Rather than a being a competitor, China's progress probably provides you with even greater opportunities to advance your strength.

Singapore is almost a facilitator and has positioned it well because of its favourable geological location. We, on the other hand, are becoming net importers, which is dangerous for any country's economy.

[wynn]

And yet we could be the 'Singapore' of Africa and points west