In South Africa, as in many African and I guess, in many countries worldwide, there is a gigantic gap between the rich and poor. This gap is growing larger, with the middle glass moving toward the poor section, not the rich side. Poverty does not discriminate in terms of race, all South Africans face this danger.
Inevitably the big government players are well situated in the top rungs of richness. Not only do they milk the public for whatever they can tax, but they ensure that you cannot go to the toilet without a license, renewable every couple of years, at a cost. On top of this, government officials are directors or have family who are directors of enterprises that secure most large government tenders.
The latest scam- the well aired and despicable toll road system will go one more step further to screw precious money from a helpless taxpayer. Oh, and not forgetting that they are now taxing all dividends as well, a smashing 15%-many pensioners rely on these funds to live.
The cost of living is rising daily and there is very little chance of it falling. With petrol always on the up, toll fees, the ripple follow on increases on everything from bread to alcohol and so on, the public are finding it hard to keep up. Especially due to the ever increasing unemployment rate and the low salary increases given to those lucky enough to be employed. (Bar the bosses, who will always ensure they are well taken care of.)
Given the sad situation that millions are either going hungry or battling to survive, governments need to look at ways to help the public as well as the economy. I will suggest a few, although there would be more.
Firstly, entrepreneurs are an important cog of the economy. These small concerns have the ability to grow and as they do, they make employment available. Many people have business minds or a good idea, but the biggest problem is funding to begin any venture. Due to the unemployment rate, Bank loans are out, so it is up to government to assist with the financial side as well as furnishing some guidance. They need to do this by assessing each application and only giving funds for individuals who have something tangible. This obviously would require knowledgeable people in the department, employed to analyse each application. Time consuming yes. But the eventually pay off would be worth it. The alternative is they will just be handing money out of nothing and this will produce no growth. .
Education, from grade 1-12 and then a degree or diploma, should be at a decent cost or free. Many have the intelligence to study but few can afford it, so as a result good minds are wasted. Educated people would be in better positions to start and grow successful businesses or assist others in doing so.
We may have some of the best labour laws, heavily in favour of the workers, but these stringent laws are making South Africa an undesirable place for overseas companies to invest. Just look at the recent Walmart debacle. We need to relax the labour laws and union influence on the government, to make SA look a country that welcomes investment.
On top of this, we need leaders who look and act the part. We are not an island, and out top leaders cannot just do and say as they wish and think the outside world is not taking note- because they are and future decisions are based on how they present themselves. (look at all the shock-waves about the privatization of mines etc). Our president has numerous wives and children, still has affairs, sometimes says the daftest things- yet he is the leader of South Africa. This is the image we are sending out. ,
Corruption has to be tackled head on. Jacob Zuma has pledged on numerous occasions, to root out corruption- but he forgot to mention that you will only be in the doo doo, if you are not a supporter of the Don President. If you are in the Zuma Cirlce, you are pretty much protected.
Government have to have a proper tender process in place and it should be legislated that nobody in government or their family can benefit from government or state tenders.
Government and all it's departments, must pay their creditors on time. Their tardiness is leading to many small and even large, enterprises having to shut their doors due to severe cash flow problems.
Then there is government expenditure. South Africans are taxed on virtually everything and what we are not taxed on, we have to somehow pay some type of penalty for anyway. If the government were seen to use this income wisely, it may make the blow easier. But they do not. Our media is always full of stories about corruption, multi- million Rand upgrades of official's houses, the million Rand official vehicles, the perpetual flying in business class and staying at 5 star hotels, the expensive meetings and get- aways, the ridiculously priced parties and of course the inflated salaries. If they could prioritize, then there would be enough money in their coffers to fix roads, hospitals etc without having to kick an already down public. If they cut their spending, there would be more money available. If they took strong legal action against corrupt officials, it may act as a deterrent for others not to follow the corruption route.
It is time government changed their actions. They are leaders yes, but this does not give them the right to rape and pillage the country and only look after themselves and their families. Government spending can and should be cut dramatically and they need to put steps in place to assist with the recovery of South Africa. If this is not done, South Africa will head the way of many other countries where the government is rich and the rest are poor. The economy would fall to pieces This will lead to civil unrest.
It is time to wake up for these greedy leeches that rule South Africa in a way that power is paramount and the public is seen as a cash cow.
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