Professional Documents
Culture Documents
Assignment
Student Name:
Canovai Ludovico
Student ID
Number:
HSF15001
Module Title:
Assessment
Title:
Lecturer(s):
Santhosh R
Date
Submitted:
15/04/2015
Signed:
Date:
15/04/2015
prices were not produced, while luxury goods were overproduced. The
economy desperately needed productive investment to create jobs, but
capital was flowing out of the country into speculative foreign investment.
Moreover, in regards to the industrial sector, the emphasis was on export
orientation and competitiveness, which underscored the importance of the
domestic market and domestic demand. The trade was liberalized and
even more machinery and intermediate goods were imported, further
exacerbating existing tendencies toward an underdeveloped capital-goods
sector and a bias against the production of affordable consumer durables
for the domestic market. No attention was paid to the possibility that
growth could be driven by an increase in domestic consumption demand,
rather than by exports. No attention was given to the possibility that the
redistribution of income and the promotion of higher wages (both
components of an inward investment strategy) could provide the engine
for economic growth, development, and redistribution. (Magubane, 2002:
101)
The GEAR and the proposed industrial policies were meant to be the key
instruments, by which the government hoped to grow the economy, in
order to create jobs, redistribute income and provide funds for social
expenditure and welfare programs. But these policies were and are in
turn, strongly influenced by the states incapability of implementing them
properly and by the challenges of globalization as a whole. More
particularly, in recent years, the international economic regime, and
especially the IMF and World Bank have become more and more
aggressive in their efforts to transform African states into what Robinson
called "transmission belts and filtering devices for the imposition of the
transnational agenda". (Robinson 1996:19).
What has just been outlined is a problem that South African, and its
leading political figures, had already clear in mind in the 1990s, when the
loss of sovereignty became an increasing concern in a country that was
considered to be a hot emerging market. In this regard, even Mandela
expressed his worries quite clearly saying that South African decision
makers were deeply concerned about what they perceived as a significant
loss of sovereignty, identifying in the financial markets and the institutions
of international governance the main beneficiaries of this struggle for
sovereignty. (Magubane, 2002: 95). And here we get to the core of the
question: the great challenge faced by the ANC therefore was, and still is,
how to maintain the momentum of socioeconomic transformation in the
era of capitalist globalization wherein the state is rapidly losing its room
for maneuver, due to the so-called time space compression, wherein
the time horizons of private and public decision making have shrunk, and
decisions are made within a more variegated space. (Magubane, 2002:
92).
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3.1 million over the same period, causing the increase in the rate of
unemployment. Employers in manufacturing perceived labor market
regulations as a major hindrance to hiring workers (Rama, 2001;
Economist, Jan. 15, 2004). The result is a segmented labor market, the
high-skill tier of which is characterized by excess demand (Rama, 2001),
while the low-skill tier displays large excess supply.
Unemployment is very high in rural areas, highlighting not only the lack of
economic activity in former homelands, but also the fact that unemployed
individuals stay in or move back to rural areas to attach themselves to
households with adequate public or private support (Klasen, Woolard,
2000). Under these circumstances, one would expect an increase in
inequality due to rising incomes for a small group of educated and skilled
South Africans and stagnant or declining incomes for a much larger group
of low-skilled individuals.
They also report that inequality within racial groups increased
substantially while between group inequality declined only slightly, as a
result of which total inequality increased in South Africa between 1995
and 2000. Echoing Lam and Leibbrandt (2003), we find a deterioration of
expenditures at the bottom end of the distribution, as a result of which
poverty, especially extreme poverty, increased significantly. There were
approximately 1.8 million (2.3 million) more South Africans in 2000 living
with less than $1/day ($2/day) than there were in 1995. However, these
losses were not uniform: Colour eds made significant gains against
poverty over this period, so did several provinces, such as Western Cape,
Northern Cape, and Free State. Inequality also increased, main ly due to a
sharp increase among the African population. The fact that the growth
rate was low and that the materialized growth was not pro-poor were the
main reasons for the lack of progress against poverty in this period.
(Johannes G. Hoogeveen and Berk zler, 2005; 3).
The wide-spreading poverty has changed the positive attitude that people
assumed in the immediate post-apartheid era, changing their ideology
about the crucial role of the state and markets in fostering developmental
goals through social policies. However, the state is not always capable to
cope with the struggles posed by globalization. In fact, it should also be
noticed that, according to what has been aforementioned, in the current
situation of diminishing state power, attempts to (re)construct national
identities and a national culture also thanks to the Truth and Reconciliation
Commission, after a long history of institutionalized racism , are weakened
by globalization.
Cultural and identity production is based on the aspirations to see socioeconomic growth, nation building, and the development of social and
moral stability as complementary, simultaneous projects. This shift in
cultural policy to celebrate Africanness may be as harmless as suggesting
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a vision for the healing of the whole of Africa; a moral and ethical desire
for a continent forgotten by the Western/Northern; now remembered by
its healthier appendage. (Mistry, 2001:18).
I also strongly believe that in addressing the issues of the country global
expansion must confront its own prejudices, escalating xenophobia,
immigration, and the newfound superiority emergent from its liberation
and democracy. And this will be possible in a condition of political and
economic security and stableness. While high expectations regarding the
alleviation of poverty, the emancipation of women, a successful confront
to the scourge of HIV disease, to the lack of technology and to the
poorness of information and intellectual property, accompanied the
advent of the new political dispensation in South Africa since 1994, little
progress appears to have been made in this regard. (Mistry, 2001: 13).
Bibliography
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Reconciliation: Itinerant Mourning in Zakes Mdas Cion, Safundi: The
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October 2009, Taylor & Francos, available at
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Political Economy of Restructuring in South Africa, Journal of Southern
African Studies, Vol. 28, No. 2 Jun. 2002, Taylor & Francis Group, pp. 255275, available at http://www.jstor.org/stable/823384
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nostats.pdf
- Johannes G. Hoogeveen and Berk zler, Not Separate, Not Equal: Poverty
and Inequality in Post-Apartheid South Africa, October 12, 2004, World
Bank, 1818 H Street NW, Washington
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