Analysis of the constraints of economic growth in south Africa
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The top ranking countries in the field of education, also rank highly in economic growth, entrepreneurship and opportunity. If South Africa had a large skilled and educated workforce as India, South Africa would be a developed country by now. However, India is still not yet a developed country because its population 1.32 billion is too much and can’t be sustained by economic growth, so you will find that India is one of the poorest countries in the world.
South Africa’s education system is poor, at least 60% of youth drop out of school before the matriculation stage. Add that to the fact that even uneducated South Africans are choosy when it comes to job opportunities. There are jobs that they will not do which they perceive to be inferior, unlike in China where the majority of people are industrious, and which has resulted in China being a global economic powerhouse.
In South Africa, there is a significant shortage of skills and workforce. I don’t think the South African government is restricting economic growth in any way. The skills are just not there. There was a shortage of skills even during the apartheid era. There are all types of industries in South Africa, even international brands have factories in SA, but you will never achieve economic growth if you don’t have the required skills and workforce.
Added on 6 September:
I forgot to mention that crime is a serious issue in South Africa. The high levels of crime in South Africa are deterring potential investors and contributing to poor economic growth. Who wants to set up a business in a crime-ridden area where people feel unsafe even during the daytime? Trucks, buses and personal vehicles are hijacked on a daily basis, shop and home robberies are a common occurrence. The police force is weak, poorly trained, corrupt and easily bribed. Crime restricts free movement of people and vehicles, it discourages people from working or setting up business in a specific area where you are more likely to be robbed, so business will suffer in many ways.
South Africa’s education system is poor, at least 60% of youth drop out of school before the matriculation stage. Add that to the fact that even uneducated South Africans are choosy when it comes to job opportunities. There are jobs that they will not do which they perceive to be inferior, unlike in China where the majority of people are industrious, and which has resulted in China being a global economic powerhouse.
In South Africa, there is a significant shortage of skills and workforce. I don’t think the South African government is restricting economic growth in any way. The skills are just not there. There was a shortage of skills even during the apartheid era. There are all types of industries in South Africa, even international brands have factories in SA, but you will never achieve economic growth if you don’t have the required skills and workforce.
Added on 6 September:
I forgot to mention that crime is a serious issue in South Africa. The high levels of crime in South Africa are deterring potential investors and contributing to poor economic growth. Who wants to set up a business in a crime-ridden area where people feel unsafe even during the daytime? Trucks, buses and personal vehicles are hijacked on a daily basis, shop and home robberies are a common occurrence. The police force is weak, poorly trained, corrupt and easily bribed. Crime restricts free movement of people and vehicles, it discourages people from working or setting up business in a specific area where you are more likely to be robbed, so business will suffer in many ways.
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