The 2011 Transformation Audit presents a collection of articles by South African thought leaders, which asks how the country can set goals and achieve them in a hostile global climate that threatens developmental gains that have been painstakingly achieved. For nearly two decades, South Africans have conducted exhaustive analyses of the country�s challenges, embarked on bold scenario exercises and, more recently, produced forward looking strategies aimed at addressing these challenges. The most eminent of these in recent years were the Department of Economic Development�s New Growth Path, and the National Planning Commission�s Draft National Development Plan. We know now what the problems are and, by and large, what needs to change to address them. Courage is required now to forge consensus, to take decisions on strategies, and to start implementing them. As in previous years, this publication, with its slightly different format and appearance, seeks to provide analysis and provoke debate on how this might be achieved.
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Transformation Audit · 2011
From inequality to inclusive growth South Africa's pursuit of shared prosperity in extraordinary times
ECoNoMiC GoVeRNàNCe: Policy stability amidst global volatility
EMpLoYMeNT:Is the labour movement still representing the working class?
EDUCàTioN:School ratings that miss the mark?
PoVeRTY àND INeqUàLiTY:Unsustainable development?
PUbLiC OpiNioN:Economic insecurity in a time of uncertainty
From Inequality to Inclusive Growth
South Africa’s pursuit of shared prosperity in extraordinary times
Edited by Jan Hofmeyr
Institute for Justice and Reconciliation www.ijr.org.za
2011 Transformatîon Audît: Buîdîng an Incusîve Economy în Troubed Tîmes I
Copyedited by Laurie RoseInnes Scorecards by DereK Yu Designed and produced by COMPRESS.dsl www.compressdsl.com
Orders to be placed with either Blue Weaver MarKeting and Distribution Tel: +27 (21) 701 4477 Fax: +27 (21) 701 7302 Email: orders@bluweaver.co.za or the IJR Tel: +27 (21) 763 7137 Email: ijr@ijr.org.za
Authors to this publication write in their personal capacity. Their views do not necessarily reflect those of their employers, nor the Institute for Justice and Reconciliation.
IITransformatîon Audît: Buîdîng an Incusîve Economy în Troubed Tîmes 2011
Lîst of tabes and fîgures Contrîbutors Acronyms and abbrevîatîons Preface Introductîon Jan Hofmeyr
CHAPTER 1 Economic governance
Contents
Revîew: ‘If you want peace, fîght for justîce’: Economîc poîcy în a dîvîded socîety Neva Makgetla
Opînîon: Natîonaîsatîon of mînes A necessary step towards economic liberation Chris Malikane
Burdening the state does not serve the cause of economic liberation Michael Spicer
CHAPTER 2 The labour market Revîew: Empoyment under pressure – încusîve strategîes are în everybody’s înterest Saliem Patel
Opînîon: Are abour unîons stî servîng the înterests of the entîre workîng cass? Reinvent to remain relevant: The challenge for unions as the voice of the worKing class EbrahimKhalil Hassen
Trade union strategies are not helping the poor and unemployed Carol Paton
îv vî vîî vîîî îx
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CHAPTER 3 Skills and education
Revîew: The chaenge of South Afrîcan schooîng: dîmensîons, targets and înîtîatîves Linda Chisholm
Opînîon: Do unîform targets hep to împrove schooîng outcomes? Balanced criteria should replace perverse passrate incentivesNick Taylor
Beware of the misleading means and measures Russell Wildeman
CHAPTER 4 Poverty and inequality Revîew:Poîcîes for reducîng încome înequaîty and poverty în South Afrîca Arden Finn, Murray Leibbrandt & Eva Wegner
Opînîon: Is ît tîme to adopt a new deveopmenta mode? Planning the status quo? A sustainable development model needs new thinKing Patrick Bond
Social and economic inclusion in postapartheid South Africa Vusi Gumede
CHAPTER 5 Perceptions of wellbeing Economic security in a time of uncertainty: A South African public opinion perspective Jan Hofmeyr & Lucía Tiscornia
Summary of broad poîcy phases, 1994–2010 Average mînîmum wage (AMW) across a bargaînîng unîts, 2003–2010 Survîva rates, Grades 10–12, 2008–2011 Bacheor-eve NSC passes, 2003–2010 Candîdates takîng mathematîcs, physîca scîence and accountancy, 2009–2010 Students takîng mathematîcs în the NSC, 2008–2010 NSC entry and passes by race NSC entry and passes în mathematîcs by race Mathematîcs partîcîpatîon and success rates by gender, 2009 Correatîons across cohorts în a UK three-year study, 1990–1992 Correatîon between mean achîevement eves and vaue-added measures for Grades 8 and 10 (USA natîona data) Gînî coeffîcîents of per capîta încome, aggregate and by race Poverty headcount ratîos Gînî coeffîcîents for market and dîsposabe încome, 1993 and 2008 Numbers of benefîcîarîes of socîa grants în 1997 and 2009 Concentratîon ratîos for socîa spendîng Uncondîtîona probabîîtîes, 1993 Uncondîtîona probabîîtîes, 2008 Condîtîona probabîîtîes from ordered probît, 1993 Condîtîona probabîîtîes from ordered probît, 2008 Estîmates of îfe expectancy – natîona, gender-, race- and provînce-specîfîc estîmates Estîmated îteracy and îîteracy rates for a aduts Access to safe drînkîng water and chîd nutrîtîona status Estîmates of the Human Deveopment Index and the Human Poverty Index Maîn dîvîsîve eements în South Afrîca How do you thînk the economîc sîtuatîon în South Afrîca wî change în the next 12 months? How does your fînancîa sîtuatîon compare to what ît was îke 12 months ago? How do the chances of you fîndîng a job compare to what they were îke 12 months ago? It îs hîghy îkey that I wî be unempoyed at some stage durîng the next year It îs better to have a ow-payîng fu-tîme job than ît îs to have to make your own îvîng Are your chances of accessîng pubîc servîces...than other peope în 2011? Are your chances of accessîng pubîc servîces...than other peope în 2011? (LSM) How woud you descrîbe your own îvîng condîtîons în 2011? How woud you descrîbe the îvîng condîtîons of most peope în the communîty where you îve în 2011? Comparîng your îvîng condîtîons to those of most other South Afrîcans în 2011, do you fee you are...? How do your îvîng condîtîons compare to what they were îke 12 months ago? How much confîdence do you have în...? Trust în eadershîp (agree wîth statement)
IV2011 Transformatîon Audît: From Inequaîty to Incusîve Growth
Growth în South Afrîca and other upper- and ower-mîdde-încome economîes, 1980–2010 Investment by type of organîsatîon as a percentage of GDP, 1994–2011 Reported Gînî coeffîcîents înternatîonay and în South Afrîca, 2000–2009 Share of aduts wîth empoyment, 1970–2010 Growth by sector, 1994–2010 (share of tota vaue added în 2010 în brackets) Net fows of portfoîo equîty, pubîc and prîvate bonds and foreîgn dîrect învestment as a percentage of GDP for the BRICS, 1994–2007 and 2008–2010 Credît to househods and the rest of the prîvate sector reatîve to GDP, 1994–2010 Merchandîse exports by îndustry, 1994–2010 Share of remuneratîon în tota vaue added by major îndustrîes, 1994–2010 Number of work stoppages and number of workîng days ost, 2006–2010 Number of încîdents by îndustry, 2009–2010 Workîng days ost by îndustry, 2009–2010 Number of days ost per thousand empoyees, 2009–2010 Number of men and women empoyed, 2001–2011 Percentage empoyed of tota workîng-age popuatîon, 2001–2011 Empoyment and unempoyment by racîa group, 2011 Youth and adut empoyment ratîos în South Afrîca and seected emergîng market economîes Ratîo of mînîmum wage to average wage of fu-tîme workers, seected countrîes Enroment, passes and pass rate, Senîor Certîfîcate, 1994–2010 Tota number of grant and pensîon recîpîents (’000s) Access to forma dweîngs în numbers and as proportîon of popuatîon Perceptîons of whether respondents’ racîa category affects theîr chances of access to pubîc servîces în 2011
2011 Transformatîon Audît: From Inequaîty to Incusîve GrowthV