Most people in South Africa and across the African continent have not yet fully comprehended what it means being in a recession, let alone realising the full impact of the global economic crisis on our daily lives.
Most people in South Africa and across the African continent have not yet fully comprehended what it means being in a recession, let alone realising the full impact of the global economic crisis on our daily lives.
At a panel discussion held on 2 April at the School of Journalism and Media Studies at Rhodes University, one of the speakers, Richard Lapper, a southern African correspondent for the Financial Times, stated that “economics is something active citizens need to be interested in and aware of.” It is through this awareness that people can have intelligent debates on these critical issues.
These aspects were discussed at a Wordfest lecture about the global economic crisis and South Africa at Rhodes University’s Eden Grove Blue Lecture Theatre on on Saturday 4 July with Prof Reg Rumney from the School of Journalism and Media Studies acting as the chair.
On the panel was Prof Harry Dugmore, the MTN Chair of Media and Mobile Communication, who before joining Rhodes worked for the office of the President in South Africa; Bobby Godsell, chairman of Eskom Holdings and Business Leader South Africa (BLSA) and Aubrey Matshiqi, senior associate and political analyst at the Centre for Policy Studies.
Matshiqi brought the conversation closer to home by focusing on what the global economic crisis means to South Africa and what impact it will have on policy. According to Godsell, the challenge he says, “is avoiding the social instability and rise of militant nationalism that could lead to the third world war”. He goes on to say that leaders "need to understand what went wrong and be able to have the vision and courage to get societies to do what is needed to put this right".
During the ensuing discussion it was acknowledged that Africa needs to trade among its own countries, strengthening the African economy and not impose strict trade barriers and in so doing destroy the confidence of African investors. It was noted that it often takes many weeks for trucks to be allowed to pass through borders.
At the end of the day it’s not the drivers who suffer but the country who is receiving those goods. Dugmore reiterated this point by saying that if we could reduce trade barriers within sub-Saharan Africa, it would lead to improved Gross Domestic Product in many countries. In so doing, we would be buying goods at a cheaper price instead of importing from abroad, making goods expensive and beyond the reaches of the poor.
Although it was acknowledged that the economic crisis is not understood by many people it was agreed that many people feel the effects thereof, especially when it comes to the motor industry. Matshiqi feels that the economic global crisis should be seen as an opportunity for humanity to reflect and for us to think whether grand ideologies like communism will help to make us understand the crisis and how to get out of it.
Matshiqi is convinced that an economic crisis presents opportunities for us to think of how we are going to increase our choices, especially when it comes to HIV/Aids awareness. He says remembering that we are part of an African identity is crucial to being South African. One’s identity is how you define yourself and how you want to be seen and is directly linked to advantageous access to scarce resources.
On the issues of policies and the effects on employment, the panel emphasised that the old paradigm of large companies providing employment is long gone and is being replaced by small emerging companies, not only in Africa but worldwide. Regulations are still important as they will help facilitate small- and medium-sized businesses to emerge so that they can grow and lower unemployment.
As the discussion drew to an end, there was acknowledgement that, where education is concerned, there is need to boost education with entrepreneurial skills and follow on what the President said about teachers. Teachers should work a full eight hour day and be on time. The community and private sectors’ role in education needs to be investigated, with possibilities of privatisation of education, so that companies can employ these graduates.
