ANCYL dangerous 'because they're right'

2011-08-16 22:14

Johannesburg - A leading business academic has challenged SA's leaders to come up with better solutions to nationalisation, as until more jobs are created the ANC Youth League will be "dangerous" as it can raise nationalisation as a solution due to the continuing failure to create jobs.

Professor Nick Binedell, director of the Gordon Institute of Business Science, told the southern African internal audit conference that the ANCYL was dangerous "because they are right" - because SA had simply not dealt with the issue of unemployment.

"Good politics drives good economics," he said. This was why the nationalisation debate and energising the youth and improving jobs needed to happen.

"But how can you run a mine if you can't run a primary school," he also pointed out.

New generation

Business needed to work harder to come up with effective choices that would ensure nationalisation rhetoric died down.

According to Binedell the rise of Asia, the internet, and the coming of age of a new generation of workers are going to be the key business driving forces of the future.

He said to heal the poverty SA needed 8% growth for ten years and SA needed leadership to make the best choices as to how it was going to compete.

He felt SA could compete against the rest of the world, but that it was a pity SA did not have a competitor on its doorstep to make it more competitive.

"The era of change is going to accelerate over the next 10 years," he cautioned.

SA dominance challenged

In the next 20 years 80% of growth is likely to come from previously peripheral countries, which includes SA. The big driver will be Asia and Binedell says the major challenge will be improving service delivery levels in SA to match those of Asia.

He said big emerging markets included Brazil, Indonesia, Mexico, Egypt, Nigeria and SA.

He, however, said SA's dominance on the continent was starting to be challenged by other African countries, but on the whole Africa had not reached its potential and there were a number of economies in transition, mostly in east Africa.

Binedell said when Nigerian people got connected to infrastructure, SA would face "a very tough race".

He said improved governance institutions were needed to build success.

Binedell lamented that Africa's biggest export was not resources, but talent, as 50% of professionals had left their countries of origin across Africa, while in a failed state like Zimbabwe it was as high as 70%.

Left behind

According to Binedell the internet will have as much impact as the industrial revolution did. "It is going to drive this era. It is a profound revolution that is still gathering force and we in SA need to be very aware or else we will be left behind."

He said he was not aware of any other country the size of SA that had produced as many strong leaders and entrepreneurs, and this should be harnessed now as SA started to compete with the best in the world in the new global paradigm. He rated Sandton as one of the best business hubs globally.

He said just 10 Brian Joffes could resolve the jobs crisis.

Joffe built services and distribution company Bidvest into a giant from nothing - it is now rated as one of the world's best companies and employs more than 105 000 people globally.

- I-Net Bridge (News24)