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Thread: Radical Economic Transformation in South Africa: How should it be done?

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    Thumbs up Radical Economic Transformation in South Africa: How should it be done?

    Radical Economic Transformation should be about transforming all the 4 factors of productions in our country or creating factors of production controlled owned by blacks. Land expropriation alone will not address the problem of poverty, inequality and economic exclusion in our Country.

    We also need to transform or create:
    1. Capital/Ability to raise funds (Banks and JSE are white). As blacks we have stokvels, which if used to full potential can be a JSE for blacks. If all blacks in this country can save in stokvels and young kids can be taught about saving in stokvels in schools and at home, then we have a potential to turn Stovkel industry into huge capital (transformed capital) not controlled by whites.

    2. Skills/Technology (Labour) is another factor of production which is very important. skills have power to generate capital. As much university Degrees are important but they do not convert into a factor of production (skills). If we can create clusters for black people to learn important skills in the world and transfer them to other blacks, we are not going to have much problem when whites (South African industry) is not willing to transfer skills to blacks because black will be having all the skills needed to dominate all the industries in South Africa.

    3. Land/Natural Resources is an important factor of production not doubt about it. But we must take note that Skills and Capital (Financial Sector) controls the world. Having land without capital and skills won't change much of a black man's economy, hence most land claimants choose money over land and those that chooses land, that land remains unused most of the time because we are living in information age where skills are very important. China's economy is doing good because of skills, and nothing is stopping black South Africans to learn all the skills and technology in the world find ways to better it on daily basis while transferring such skills to other blacks starting in primary schools.

    4. Entrepreneurship is what must be taught to our grade R students so that those with a potential to become great entrepreneurs in our country can be raised and supported. DTI should create and support more black entrepreneurs, instead of trying to transform existing businesses to include black shareholders.

    I believe this is how we can achieve radial economic transformation for blacks. B-BBEE is good but will never give us radical economic transformation because it does not create anything but seeking to share on already existing businesses which is not really sustainable and obviously there will be resistance from companies to transform. The objective should be to create ownership of 4 factors of production by blacks instead of trying to share in existing businesses.

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    None of this matters if you have no market either at home, abroad, or both. No country will allow you to enter their market without reciprocity and even then it may not happen. In the world of emerging tariff barriers and trade protectionism it is everyone for themselves granted there are alliances here and there.

    SA is so ingrained in internal re-distribution it ignored foreign policy to gain market access outwardly.

    here you go for some thoughts
    https://atlas.media.mit.edu/en/profile/country/zaf/
    visualizations are interesting if you consider imports from China

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    Progress and improvement depends on self-education.


    To find solutions the focus for za needs less attention on "internal re-distribution" far more to ensure concentration is on raising measurable education, practical skills, with concentration on Science, Technology, Engineering and Mathematics (STEM), as these needed for real developments.

    Za has 26.6% unemployment rate, to change this is need to encourage smaller businesses to employ more people they need tax benefits, these benefits capped for each employees weekly income to ensure result is improved incomes for those currently earning below average wages.

    Those on lower incomes spend most of their money, when they spend if flows upwards, improving more of the economy.

    Economics education in za needs adopt the Minksy approach developed by Professor Steve Keen, he recently published "Can We Avoid Another Financial Crisis?" worth a read.

    How to save us from another financial crisis URL https://www.youtube.com/watch?v=B_DoV30wlsk




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