Without a vision, we’re at the mercy of the world

THE Reserve Bank’s decision to cut interest rates by 0.5% last month reflects heightened concern about the growing weakness of SA’s economy. This concern is echoed in the recent World Bank report on SA and its lowered forecast of our gross domestic product (GDP) growth this year to just 2.5%. And that isn’t all. SA, the World Bank noted, is especially vulnerable if the economies of the European Union or China weaken more than expected. This is because Europe is SA’s largest export market, while weakness in China could trigger further falls in the prices of commodities that make up the bulk of our exports.

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Problem with economic pie is it may get smaller

THERE are many reasons economic debate in SA is frequently so heated.
Protagonists lack common histories or yardsticks against which to judge each other's arguments. In such circumstances, real debate and agreement are impossible.

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ANC's mining report makes a foolish assumption

A central theme of discussions at this week's African National Congress (ANC) policy conference will be state's role in the economy. Mining will enjoy particular attention when the report, State Intervention in the Minerals Sector ( SIMS ) is discussed.

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The Left's failure to resolve global crisis gives fascism room

LAST year Rhodes University academic Jane Duncan warned of "proto fascism" emerging in South Africa. At the same time, in an article for a local publication, I wrote that "the first loud trumpet calls to fascism in modern South Africa have been sounded".

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Marikana’s shadow will engulf whole economy

The wildcat strikes on SA’s mines that inevitably followed the wage settlement at Marikana have important implications for the economy and for the future of mining. Lost mining production from strikes comes as the economy is already running a very large deficit on the current account of the balance of payments. We rely on inflows of "hot money" — foreign portfolio purchases of bonds and equities — to fund this deficit. Foreign investors are large owners of South African mining shares. The risk is growing that they will take fright and sell their shares just as our exports shrink. The combination of a high current account deficit and sudden capital outflows would be devastating for the rand and local asset prices. This could push SA’s feeble economy back into recession.

Perspective

VC Editiorials

RU SKA Booklet

Without a vision, we’re at the mercy of the world

...read more

Problem with economic pie is it may get smaller

...read more

ANC's mining report makes a foolish assumption

...read more

The Left's failure to resolve global crisis gives fascism room

...read more

Marikana’s shadow will engulf whole economy

...read more

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