Banker S.A. April 2014 | Page 15

SA DEMOCRACY We have a constitutional democracy that is the envy of many. not training enough artisans and creating enough entrepreneurs to contribute to the growth of our economy and make a dent in the jobless situation. We are also falling short in creating an environment for economic growth, through inappropriate regulations and uncertainty in consistent implementation of regulations. The social fabric of our societies is weakening and is tenuous, and we have become a violent society that does not care for our women and children. We are weakening our constitutional and democratic structures, with rampant corruption just one of the manifestations of this. The Goldman Sachs report quoted above also identifies the following problems that persist after 20 years of democracy: • Unemployment remains stagnant at 25% from the 23% inherited in 1994, concentrated amongst the youth; • The majority of Africans remain in the lower-income categories whilst the vast majority of white people remain in the middle to upper-class categories; • The current account deficit is now 6.8% of GDP, one of the highest amongst global peers, placing SA in the exposed company of other twin deficit countries; • The contribution of mining and manufacturing to GDP has fallen to 23% now from 38% in 1986; • Household debt to disposable income soared from 57% in 1994 to the present 76%; • Real wage inflation across the economy of 3% per annum was recorded over the two decades of democracy, whilst in the mining sector wage inflation in the decade 2001 2011 was 11% per annum, just as Platinum Group Metal (PGM) productivity decline