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South Africa: Stuck in the Middle?

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South Africa: Stuck in the Middle? | 2014 | 1. Why is South Africa stuck in the middle? 2. Please find at least three problems to answer the first question. 3. Give your opinion for solving each of the problems mentioned in second answer. | |

Contents Africa is experiencing extraordinary growth 2 Challenges 2 Challenge #1 Education 2 Challenge #2 Unemployment 3 Challenge #3 South Africa's growth path is highly resource intensive and hence unsustainable 4 Solutions 4 Solution # 1 - Improve education form the bottom up 4 Solution # 2 – Address unemployment from a new angle and become More attractive to Global business and entrepreneurship 6 Solution # 3 - Reduce the need for commodities and Invest in technology and entrepreneurship 8 Conclusion 8

Africa is experiencing extraordinary growth,
In fact this decade has seen more growth for Africa than any other time in history making it six in the world’s 10 rising economy’s. Life expectancy is improving and HIV rates are down almost 30%. Malaria is also down and despite SA having the highest concentration of HIV in the world, African children born today are increasing their life expectancy one year for every three years over the last a decade.
Education rates are increasing 25%, and more young educated man are entering the South African workforce.
Yet despite these growth factors South Africa, and the continent of Africa as a whole, is still viewed as an unstable and corrupt environment. While it’s true there is still corruption, poverty and rampant disease throughout the continent current studies demonstrate these inflammatory issues are more pockets rather than vast majority. This misconception, however this still driving away businesses and pigeonholing South Africa as an undesirable business location. This is not tosay SA is without its challenges or the perception of these problems is not without merit. SA is still plagued by disease, intense for racial divide and corruption in the more poor areas of the state.
South Africa is unique in that it is stuck in the middle, wedged between the potential of the developing nation and the challenges of third world state. South Africa remains stuck in the middle because it is marred by political and social development. This stew of deterioration is a perfect storm of a divided society, a disastrous public health sector and political corruption. More to the point - political corruption is a less a result of the presence of evil and the more a factor of the lack of altruism. SA, until recently, has had a severe lack of leadership.
Furthermore these problems are not mutually exclusive, and can be boiled down to three problems which if solved can begin to turn the gears of change and set South Africa on a significant growth path.
The three biggest challenges facing South Africa are Education, Unemployment and SA’s Resource Based Economy. These problems trickle down and are related in that - as the country’s education begins to, unemployment begin to decrease; and by strengthening infrastructure for businesses leadership can begin to create jobs and create new business sectors for the country. In turn, there is a failing infrastructure - because of a resource based economy - because there is a lack of leadership - because there is high unemployment - because there is poor education.
Challenges
On a macro level, Education works to combat divided society and health issues. Improved infrastructure works create better workforce environment for new skilled workers. This new, educated workforce is able to organize and represent itself through modern collective bargaining platforms allowing for leadership to remove archaic apartheid policies. Finally with an educated society which is privatized is empowered to bring in new opportunities for investment and manufacturing
Challenge #1 Education
In a series of interviews conducted by the company Leader, Chief Executive of the Federation of Governing Bodies of South African Schools (FEDSAS) Paul Coldi stated: “The document Diagnostic Overview, which resulted from the initial deliberations of Trevor Manuel’s National Planning Commission (NPC), states the obvious: The quality of education for poor black South Africans is substandard. It is not clear, though, why the Commission singles out “poor black South Africans”. The simple truth is that the quality of education for most South African learners is substandard, and that, if left unabated, ‘most’ will soon become ‘all.” (Leader)
The result of the study is apparent. The quality of the current education system is a direct result of the quality of its teachers. The only way to improve the results is to improve the instruction. Research also indicates if parents take a leadership role the children’s life education standards will improve.
Early childhood development has been severely lacking foundations and literacy and mathematics. Some reports show that only 35% high school graduates can read while other reports show that range from 12% to 43% on the western side. (NCP Online diagnostic Overview)
Beyond basic education the countries system of higher education is inefficient and incongruent with public sector demands. Without public adult learning centers, career and training colleges and community education to compensate for all spectrum’s of students the country fails to provide a responsive education system to create opportunities for its citizens.
Current opportunities for education lack the necessary capabilities to fully prepare South African students to attack the challenges facing their generation. Current programs need to be outfitted with proper financial assistance and career services departments. Career counseling has proven to be integral to the development of a burgeoning workforce. Many of the colleges and training institutes already established within the country lacked this capacity.
But more than a lack of infrastructure and more than a lack of quality instruction, with the South African education system is missing is a passionate driving force to change the hearts and minds of its children. The scars of the apartheid era still permeate through the current generation. In short, there are no dream builders.
Challenge #2 Unemployment
Unemployment is still in dragging weight on the economics of South Africa. Some studies point to the continued effects of the post apartheid phenomenon. Severe racial segregation still affects black and “coloured” citizens from obtaining gainful employment. However, Unemployment in South Africa is a direct result of lack of education. Loane Sharpe: An economist and labor analyst at Adcorp, and an eminent internationally recognized authority on the SA labor market states: “Although it is true that, prior to 1994, Black South Africans were not properly represented in official statistical surveys, the best available estimates suggest that South Africa’s unemployment rate increased from about 7% in the mid-1970s to 13% in the mid-1990s and 25% in the late 2000s. To the South African government this is an inconvenient fact, since it implies that current high levels of unemployment are largely a post-apartheid phenomenon and not, as many officials and academics would prefer it, a legacy of apartheid. Acceptance of this fact – and its implication that unemployment has current rather than historical causes – is the necessary first step in fixing the problem. So long as we cite historical causes, we live in a fantasy world where unemployment can only be addressed when the legacy of apartheid itself is finally addressed. Indeed, persistent belief in the faulty “structural unemployment” myth led the ANC government for many years to relegate education, labour and other policies to the sidelines when, in fact, they could have made an enormous difference.” (Leader)
This is not to say that continued segregation is merely an excuse for unemployment, it is a suggestion of this case study that by investing in the education system the South African government will increase employment rates while decreasing ignorant behavior and archaic policies. If the people of South Africa are empowered through education the differences between which problems are related to racism and/or economic shortcomings in the work force will become glaringly apparent.
The Global opportunity for industry and employment is available; it is up to South Africa to match that demand by providing a qualified workforce. “On the supply side, we must confront the fact that while our government has been incredibly successful at large, one-off projects that involve a limited number of steps (we hosted a very successful World Cup, put a satellite in space, and built a world-class passenger-rail service in our richest province), it has failed when projects require regular, on going contact with a large number of end users, such as in education. On the demand side, we must solve the problem of businesses that would rather poach employees from other companies than employ and train talented people who lack skills and work experience but could add value in the long term. (This, in spite of the fact that while the unemployment rate in South Africa is astounding, businesses struggle to fill vacancies.) And we also need to address the structural constraints of a large, poorly educated, mostly black population without the social capital to get workplace skills, work experience, and job placement.” (Setiloane)
Challenge #3 South Africa's growth path is highly resource intensive and hence unsustainable
SA economy is built on commodity based revenue, in fact it is dependent upon it. This revenue has allowed for the growth South Africa has experienced and it will continue to do so for the next 25 years. The mistake SA is making is being wholly and dependent upon that extraction process by not building in a second stage. This absence of future planning is a further example of lack of infrastructure and leadership as the plan is not conducive to long-term growth and is creating a shadow looming in the future.
John Powell, Director of the University of Stellenbosch Business School, states “See, we can’t grow more diamonds, or coal or manganese, but we can grow knowledge. SA and Africa in general has always been seen as a place where the developed world comes to grab raw materials and, particularly poignantly, human bodies. To say that our high resource usage is a problem rather than the gift of a path to transformation is to accept the developed world’s view of SA as a supermarket for raw materials and labour. What Africa needs in order to escape that ‘supermarket paradigm’ is to become sustainable in knowledge, in know-how, in IPR. Africa needs to develop know-how which derives from the African experience and which, therefore, requires African cognition to make sense of it. If we can do that, though utilising the temporary exploitation of our mineralogical gifts, we can create a new raw material (knowledge) which truly is sustainable.” (Leader)
Necessity is the mother of invention however Education breeds innovation. SA’s “Phase Two” will need to come from its millennial generation. SA’s goal, focus and heart should be on them.
Solutions
Solution # 1 - Improve education form the bottom up
The problem affecting basic education in South Africa has been identified as a weakness in teachers and instruction. The straightforward solution of improving the quality of teachers is a complicated endeavor. This report outlines a five pronged plan which could work to improve the quality of teachers in South Africa.
First, Create a counsel for educators that work to improve the quality of teachers through training. This governing body will be crucial to the next four phases of the plan. In order to execute each phase there will be a need for oversight. If sanctioned, the council’s can act as the legislative arm for education within the bureaucratic system.
Secondly, form professional associations through partnerships and incentives to private companies. These professional associations are necessary to expose teachers to new technology and training. South African businesses must invest in the teaching community in order to invest in the future of South Africa. Sponsored activities for education institutions can lead to national recognition for both parties.
Third, Support and allow for the structure of teachers unions. Unions are risky animal because they can sometimes gain too much leverage, however the South African teaching community is in desperate need of legitimacy and organization. The governing council should assist the unions in developing the capacity to implement strategies as well as identify opportunities for growth. Teachers must gain respect in the eyes of parents and the community at large, and they must have the power to battle lingering racism to truly cultivate change in children.
Again, teachers unions have the potential to become bloated and over interested in self preservation but the need in South Africa far outweighs the risk. In this situation the teachers are the tip of the spear and their voices must be heard in their efforts were awarded.
Within the sector of unions, leaders and high performers should be identified and sponsored for advanced studies to create leadership opportunities and further partnerships with professional associations.
Fourth, allowing for collective bargaining and union negotiation teachers should be paid more. The governments should allocate more funds to attract more teachers.
Fifth and finally, Reward schools that show continuous improvements in their annual national assessments. In the past South African officials have tried to financially incentivize teachers with high performance. “Many education experts are critical of the idea of linking teacher pay to the performance of learners because it ignores other factors affecting learner performance, such as the socioeconomic status of learners, parent involvement, learning back logs, and school infrastructure and resources. Teachers in poor areas would be penalized for factors they have no control over, and teachers in rich schools would be more likely to benefit. The Commission therefore proposes that incentives be directed at schools rather than at individual teachers to focus on those areas where teachers working collectively can make a difference.
To target incentives at where they are most needed, design the incentives to prescribe that schools should improve their home and one result by 10 percent or more to qualify. Many of the schools in affluent areas are already highly of those you performing at high level with pass rates above
Ensure that improvements are sustainable by prescribing that schools must show improvement over three consecutive years to qualify for rewards.”(NDP report)
The world at large, particularly the west, is beginning to see increased benefits from career in training colleges. Schools which are focused on career education for career jobs such as nursing, mechanics, legal assistant and any number of health and beauty career fields provide an immediate workforce for job for in demand. Additionally, additionally a dull education is a sector that is vastly underdeveloped in South Africa effectively eliminating a large portion of potential workers.
The South African Dept of higher education and training has a proposal in place to establish community education and training centers throughout the state. The centers will offer alternative education and training pathways which will directly result in more jobs.
The first step will be to improve the quality of leaders and teachers within the higher education system. By increasing the quality of basic education as well as instruction in higher education department of education hopes to increase universe the protest patient by 70% by the year 2030 (NDP report)
The department also has lofty goals in increasing postsecondary education participants. However, while it should be a goal to increase the number of masters and PhD students, it is the suggestion of this study the focus of a higher education should be to add to the middle class working force. SA should be developing its manufacturing and textiles to employ thousands of frontline employees. In addition to this capacity South Africa will need an army of college graduates and midlevel managers.
By adding community colleges and career colleges South Africa will create an entirely new workforce to prepare for an economy driving middle class.
Finally as a part of the plan to increase education the schools need to be outfitted with proper career development and placement programs. In the west gainful employment has been put in place to ensure education institutions are providing valuable and employment directed education.
A study conducted in June of 2005 showed career courses in career services create a significant positive impact on the workforce. In the U.S. more than 18,994 students were involved in these studies from 1976 to 2005. This review has been framed in terms of the outputs and outcomes of career course interventions. 40 studies of career course outputs were reviewed, such as career thoughts, career decision-making skills, career decidedness, and vocational identity, which are theoretically related to outcomes of career interventions, such as persistence (retention) in college, and job satisfaction or satisfaction with field of study. In this analysis, 36 studies were found (90%) reporting positive gains in measured output variables, and 4 studies (10%) reporting no changes in output variables. 16 studies were reviewed of career course outcomes and found fourteen studies (88%) reporting positive gains in measured outcome variables, and two studies (12%) reporting no changes in outcome variables. The paper concludes The practice of using career development courses in colleges and universities to assist students with educational and career planning has a surprisingly long and robust positive impact. (Folsom, Reardon and Lee)
It is the suggestion of this study that SA will benefit from programs such as these to educate and died the South African millennial generation through this evolution. Adding this department to its colleges will also create a new job sector in an already large arena.
Solution # 2 – Address unemployment from a new angle and become More attractive to Global business and entrepreneurship
The problem of unemployment in South Africa is a result of a divided society, the lack of education and an employment market which is in congruent to its population.
As previously stated there have been several significant gains made towards equality. in order to solidify the foundations which education reforms will build there needs to be a significant change in leadership and regulation. Many experts agree that the labor relations act of 1995 (LRA) requires revisions in two areas: collective bargaining and protections against dismissal. SA of labor laws rank seventh lowest in the world in a collection of practices which do not protect the labor force from hiring and firing procedures, cooperation and wage flexibility. All three of these incredibly crucial workforce aspects are regulated by the LRA.
In short if the LRA were amended to allow collective bargaining and protection the last of the apartheid standards would begin to be eliminated. Without protection and standards of the equality racial discrimination will be allowed to run rampant through high levels of organizations. Making these changes will allow for improved conditions for black South Africans, which will in turn help drive the economy and improve the unemployment.
As education improves intolerance and ignorance will decline as a more qualified workforce prepares for a new generation.
Finally in order to improve unemployment decision makers must shift away from a commodity based economy and make SA more attractive to investors and manufactures.
If Following graph shows the number of 15 to 24 olds in different parts of the world. 10 years ago if a company was going to build a factory they would probably choose China; however now the graphic indicates that the number of 15 to 24 year-olds is declining in China. So companies today looking to build new factories are looking for to Pakistan, Bangladesh and Africa (yellow line).

Africa is perceived to be less attractive than Indian nations because of its level of education.
A closer look will showed any potential investor the benefits of building in South Africa. South Africa’s education levels are at the point where China was in 1975. Building factories in sub-Saharan Africa will put them on a growth path by creating thousands of new jobs. (Robertson, Mhango & Moran )

Solution # 3 - Reduce the need for commodities and Invest in technology and entrepreneurship
The final and most long-term problem affecting South Africa’s its dependence upon its commodity based economy. The problem is entangled with unemployment and lack of leadership. The solution is to shift away from a commodity based economy by creating an environment where alternative business structures can flourish. This means of South Africa needs to allow for new economic freedoms to complement its democratic reforms. SA has reached a threshold where capital ownership could be the launch pad for a new economic evolution and a break away from resource dependence.
Africa’s greatest resource is her people. It is the responsibility of South Africa to develop her people through education, entrepreneurship and private ownership opportunities.
SA it needs to allow private business ownership and more private land ownership. By relinquishing government owned land back to farmers SA will be empowering its farmers and resource collectors.
Time and time again research has shown that economies improve when entrepreneurial activities are encouraged and fostered.
In addition to this is a required investment and South Africa’s mobile Communications Network. While it may sound insignificant investing in a wireless network allows for greater communication in an already technical and Internet based world economy. Motorola’s Investment in Uganda and parts of Western Africa has shown great strides in economic and small business development. South Africa can capitalize on this development by supporting an already powerful cellular network.
Motorola has partnered with the Ugandan government to provide women with smart phones which allow them to monitor and run small clothing and farming businesses.
As previously stated South Africa’s only seen an increase in their millennial generation and a demand for this type of support.
For developing economy like South Africa innovation has to be nurtured through entrepreneurship. The south African government must make a number of policy and structural developments to build the capacity and ecosystem for entrepreneurial thinking and endeavors.

Conclusion
SA has one of the most disadvantaged youth populations on the planet. This generation is facing challenges with unemployment, poor education and seemingly insurmountable public health challenges. A massive investment into this generation is required for the success of South Africa. The best hope for this growing at nation is to improve the educational opportunities for its young people while simultaneously creating an environment conducive for growth and business development.
South African has all the resources it needs but must now called upon its leadership and its people to step forward and create the necessary change to ensure the future of a beautiful and diverse nation.

References: 1. Multiple Authors, Leader “9 major problems facing South Africa - and how to fix them” (July 18, 2011) www.leader.co.za. http://www.leader.co.za/article.aspx?s=1&f=1&a=2893 2. National planning Commission (NCP) Department of the presidency of South Africa “Diagnostic overview” http://www.npconline.co.za/MediaLib/Downloads/Home/Tabs/Diagnostic/Diagnostic%20Overview.pdf 3. Mckinsey & Company, “McKinsey on Society” www.mckinseyonsociety.com http://www.mckinsey.com/App_Media/Reports/SSO/Worlds_School_Systems_Final.pdf 4. http://www.southafrica.info/business/economy/policies/labourbodies.htm 5. Thero Setiloane CEO Business Leadership South Africa, Beyond advocacy – business needs to get its head in the game://voices.mckinseyonsociety.com/south-africa-unemployment-in-youth/ 6. http://www.leader.co.za/article.aspx?s=1&f=1&a=2896 7. South Africa National Development Plan, “Improving Education, Training and Innovation” (Ch 9, page 29 http://www.npconline.co.za/medialib/downloads/home/NPC%20National%20Development%20Plan%20Vision%202030%20-lo-res.pdf 8. Byron Folsom, Ed.D, Robert Reardon, Ph.D & Donghyuck Lee, M.Ed. “The Effects of College Career Courses on Learner Outputs and Outcomes: Technical Report” (June 29, 2005)
The Center for the Study of Technology in Counseling and Career Development 9. Charles Robertson, Yvonne Mhango & Michael Moran “The Fastest Billion: The Story Behind Africa's Economic Revolution” (

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