‘SA could become developed country’

2010-10-08 14:58

Moving from its status of a developing country to a developed one is an attainable goal for South Africa, CEO of Business Leadership SA Michael Spicer said.

Spicer was addressing the second day of the Black Management Forum’s summit in Johannesburg.

“South Korea did just this in 30 years and it is an attainable goal for South Africa if it lifts its growth,” Spicer said.

SA was “a typically 3.5% per year growth economy” with unemployment of around 35%.

It could acquire the status of a developed economy if its growth rose to 7% and if unemployment decreased to 10%, Spicer said.

A developed country was seen as one that was able to employ the majority of its people and one that offered good education, good health facilities and a high standard of living.

“But to become a developed country, behaviour would have to change,” Spicer said.

“We are living beyond our means and we could end up like Greece if we carry on.”

Savings
Spicer said SA was a country that saved little.

“Savings make up 14% of GDP here but if you want to be a developed country around 25% of GDP should be savings.”

Spicer said South Africa relied on foreign investors for capital investment and without them, it would not have sufficient tax revenues.

“It must be remembered that we are a large welfare state with 16 million currently receiving benefits and this will rise to 20 million soon ... in fact, one person supports benefits for three persons and this is not sustainable.”

Despite the efforts of the SA Revenue Service, SA had a narrow tax base. Spicer said things would need to be done differently in the future.

“Unions can’t continue to play the games they are playing – they exclude the youth.

“And large companies must make sacrifices beyond Black Economic Empowerment (BEE) and think about issues of executive remuneration.”

Spicer said government had to do things differently too.

“State owned enterprises are in a mess – in over two years a CEO for Transnet hasn’t been found and this parastatal is a bedrock of the economy,” he said.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.