Showing posts with label income inequality. Show all posts
Showing posts with label income inequality. Show all posts

Sunday, April 28, 2019

South Africa "Freedom Day" -- not much to celebrate

Yesterday, black South Africans celebrated the 25th anniversary of "Freedom Day", the day in 1994 when they were allowed to cast ballots in the country's first "one person one vote" election. President Cyril Ramaphosa said, "On this day 25 years ago, we founded a new country defined by the principles of equality, unity, non-racialism and non-sexism. Despite the passage of time, we remember vividly...the exhilaration of seeing nearly 20 million South Africans of all races waiting patiently at polling stations around the country to cast their ballots."


Walt was there at the time -- based in Ha-ha-harare, the fun capital of Zimbabwe -- and remembers opening a book (read: started taking bets) on how long it would take for the most prosperous nation in Africa to regress to levels of poverty and inequality like those of Zimbabwe, the Congo, Sudan and other shithole states of the Dark Continent.

It didn't take that long. Today, widespread poverty and corruption mean that, 25 years after the end of apartheid, many South Africans are still not free. In yesterday's speech, President Ramaphosa praised the work of South Africa's first black president, Nelson Mandela, but said that the country could not be free "when so many live without enough food, without proper shelter, without access to quality health care, without a means to earn a living."

South Africa's black majority were promised that once they were "empowered", they would have white cars, white houses and white women. Pictured above is what they got.

Yesterday, President Ramaphosa (who replaced Jacob Zuma, President No. 3, who was forced out over a string of corruption scandals and a penchant for polygamy) said, "As we celebrate 25 years of democracy, we need to focus all our attention and efforts on ensuring that all South Africans can equally experience the economic and social benefits of freedom."

The reality of post-apartheid South Africa is that any progress made to fulfill the promises made to the country's blacks has been undone in just five short years. Today, South Africa is one of the most consistently unequal countries in the world. More than half the population lives in poverty, while a staggering 27% of people are unemployed. And that's according to the government's statistics, which are believed to be wildly over-optimistic.

Since 2011, three million more South Africans have been pushed below the poverty line, according to a study by the national data agency, Statistics South Africa, released this week. More than 30.4 million South Africans (55.5% of the population) live on less than 992 rand (about $75) per person per month.

Those figures, collected in 2015, are actually more optimistic than numbers from 2006, when two-thirds of South Africans were living in poverty. But it captures the painful one-step-forward, two-steps-backwards dance the country has been engaged in over the last decade trying to improve the lives of its population. In 2006, 28.4% of the country was found to be living in extreme poverty. That number had only inched downwards to 25.2% by 2015.

Those numbers aren't likely to improve. In the last year alone, South Africa has entered recession and seen its sovereign debt rating adjusted to junk status, making life harder for everyone, especially the poor. The national power supplier, Eskom, is effectively bankrupt. With massive power outages threatened, those who can afford to are rushing to buy generators and storage batteries. The "povo" (= truly poor) are buying or making candles.

Because of the seizure of productive white farms (and the murder of the white farmers, detailed previously on WWW), millions of South Africans are now facing "food insecurity" -- shortages of food, hunger, even the prospect of starvation -- the crisis which now besets Zimbabwe, Mozambique, Malawi and other black-run states to the north. This in a country which was once a net exporter of foodstuffs.

The reality of post-apartheid South Africa is that the majority of its citizens live in grinding poverty. The full effect of the 2008 global financial crisis, initially hidden by the euphoria and capital injection of the 2010 FIFA World Cup, is now being felt. The country has also fallen victim to the sluggish growth seen by other commodities-driven economies, unable to improve on 3.3% growth in 2011, the highest GDP has peaked since the financial crisis.

The real problem, though, is South Africa’s inability to implement its own policies. In other words, the black government is incapable of managing the economy or the country. In 2012, the country launched a "National Development Plan" with much pomp and an explanatory animated video showing how much better life would be once they got organized. (18 years after the end of apartheid, they couldn't blame the whities any more.) But a lack of political will and simple competence have left the plan adrift. By almost all measures, South Africa is going to miss the goals -- reduction of poverty from 39% in 2009 to 0%, and the complete eliminate of hunger, by 2030 -- it set for itself in the plan.

Even the commission tasked with seeing the plan through is frustrated by the lack of government support to do so, despite having an office a few doors down from the president. The group's deputy commissioner told the meeja recently, "We have a plan, we like it very much, we take it to parliament, the whole world praises it... And we are the ones that don't implement it." Nothing more need be said. Mother Africa Wins Again.

Tuesday, October 8, 2013

Yesterday's man equates today's middle class with yesterday's poor

Have you read "American then (25 years ago) and now", posted here yesterday? Walt recommended that you read (or reread) The Great Divide: Second Thoughts on the American Dream, by the late Studs Terkel. The book tells, in their own words, the plight of America's poor.

The Great Divide was published in 1988. It is a compilation of interviews Mr. Terkel did earlier in the 1980s. Ronald Reagan was president of the US of A in those years. His immediate predecessor, whose Democratic maladministration was responsible for much of America's economic distress, was a former farmer from the Peach State, one James "Jimmy" Carter.

Ronald Reagan is no longer with us. Jimmy Carter, like the poor, still is. And yesterday, just by coincidence, he offered a waiting nation his views on America's "economic challenges".

During an interview with The Associated Press, he said that years of tax breaks for the wealthy, a minimum wage untethered from the inflation rate and electoral districts drawn to maximize political polarization have reduced the quality of life for all but the richest Americans.

Note from Ed.: There's a video clip embedded in the Washington Times report, which I've been trying for half an hour to copy and embed here, but thanks to Blogger's screwed-up GUI, you'll have to go to the newspaper account if you want to hear the words from the horses's mouth. Back to Walt...

In the video, President Carter said there was "a great deal of discouragement since 2008." Well DUH! But how can that be? When the affirmative action version of Jimmy Carter was sworn in, you'd have thought the Choir Invisible was going to descend from Heaven and make everything right -- as right as Carter himself would have made things if only he'd had a second term. What happened to "Yes we can" and all the hopey-changey stuff?

Seems to Walt that people who create messes should have some ideas about how to clean them up. If Mr. Carter has a magic wand which could be waved to end the present impasse in Washington, he would do well to hand it to the incumbent... immediately!