What direction SA’s economy?

first_imgJP LandmanSouth Africa’s new cabinet is a careful balance between different interest groups – and between different views on the economy. On the one hand we have people like the new minister of economic development, who comes from a fairly socialist and government-centred view of the world. On the other are people such as Trevor Manuel, who have learned about the limitations of the state.There will be serious debates about economic policy, including:macroeconomic policy (interest rates and budget balances)industrial policy (which industries the state should support and protect)microeconomics (the economics of individual sectors such as textiles, health and vehicle manufacturing, where tariffs, relevant infrastructure and specific supply side measures are important decisions)This is a new phase in South Africa’s democracy, and will be a new experience for the country’s political economy.When the Growth, Employment and Redistribution Programme (Gear) was introduced in 1996 after that year’s currency crisis, it was very much a top-down affair. The left has not forgiven Mbeki for that, and took their revenge. This top-down approach is the way macroeconomic stability was introduced in a score of countries in Latin America and even India, the world’s largest democracy, in 1991 – five years before Gear.Politics and economic policy-making do not always mix, as we saw in the old South Africa and what we currently see in Latin America.High road and low road scenariosThe high-road scenario is that the macro framework remains: a floating currency, budget discipline that will enhance national savings, tight focus on inflation (preferably through inflation targeting), and an open and outward-looking economy.The debate can then move on to questions such as:How can South Africa get onto a growth path that is more labour intensive?How can capital best be mobilised to finance infrastructure development?What are the next reforms to be undertaken to lift the growth capacity of the economy? Industrial policy and micro-economics can play a huge role in this.The low-road scenario is that the macro framework gets jettisoned. This is unlikely due to the cash-flow squeeze caused by the global crisis and South Africa’s infrastructure programme.A more realistic risk is that we develop a huge dependence in the state to deliver growth and development. This takes us into a developmental state framework. Not a developmental state as it was practiced in the East or Latin America, but with a unique South Africa identity to it. Will it be a market-friendly developmental state or a statist one? The choice will determine South Africa’s growth.How much is enough?By how much should the country grow to sustain its progress? As always, I like to convert it to per capita income growth, as that takes care of population growth.Over the first 15 years of democracy per capita incomes were lifted by 30%. All else flowed from that. Just to repeat some of the results of that 30% rise:More than 4-million jobs were created taking the percentage of the working age population that is employed from 39% to 44%. (Unemployment is not falling as much as 4-million new jobs would suggest because more young people enter the labour market looking for jobs. It is an issue of demography, not failure to create jobs).Huge progress has been made in providing housing, water, sanitation and electricity to millions of people.A social security net has been established that helps close to 14-million people every month at a cost of 4.8% of GDP.This year the public sector will invest 8% of GDP in infrastructure.(It is no surprise that the African National Congress was returned to power with a huge majority in the recent elections – millions of lives have changed, even if other millions have not.)To repeat the above and more would again require a 30% rise in per capita incomes over the next 15 years. That in turn will only require economic growth of 2.4% a year. That is not a demanding growth rate, and one South Africa should be able to achieve. If the figure looks low it is because the country’s population growth rate is low.But do we want to up our game? A difference of just 1% growth a year – annual growth of 3.4% – can bring that 30% rise about in 10 years, not 15. In a six-year period of 3.4% growth, 2-million more jobs can be added to the economy.All the benefits achieved above will again be reaped, but in a shorter time. It will make a huge contribution in wiping out the country’s developmental deficit.Will we plod along, or strive for the 6% growth that the Accelerated and Shared Growth Initiative targeted? That is for me will be the test of Jacob Zuma’s new government, and we will see over the term of this parliament how things develop.JP Landman is a self-employed political and trend analyst. He consults to SA largest private wealth business, BoE Private Clients, and works with several SA corporates on future scenario trends. His focus areas are trends in politics, economics and social capital.Among some of the unique research projects his consultancy has undertaken was the role of public institutions in battling corruption (quoted by the UN in a report on corruption), the interplay of demographics and economic growth, and an overview of trends around poverty alleviation in SA. Whilst working as an analyst on the JSE in the 1990s he was voted the top analyst in political trends.He is also a popular speaker who has addressed diverse audiences locally and internationally and enjoys consistently good ratings.He has a BA and LLB degrees from Stellenbosch (1978), studied Economics and Development Economics at Unisa (1979 and 1980) and later at Harvard (1998 and 2005), and obtained an MPhil in Future Studies (cum laude) from Stellenbosch (2003).last_img read more

[WATCH] Nike celebrates SA’s golden girl, Caster Semenya in cutting-edge ad

first_img“Too fast? Too bad. I was born to do this.” This is the message gold medallist Caster Semenya conveys in her latest ad.This year has been nothing short of amazing for the South African 800m runner, who has just wrapped up another phenomenal season. She reached an 800m personal best of 1:54.25 in the Paris Diamond League that took place in June this year, followed by another seven Diamond League wins, and her most recent wins at the IAAF Continental Cup, claiming the 800m title and the silver medal in the 400m, where she set a new South African record of 49.62.On Monday, Semenya trended on social media yet again, this time after posting a powerful Nike commercial she features in. In the ad, she utters the words: “Would it be simpler if I stopped winning? Would you be more comfortable if I was less proud?”The ad responds to on-going criticism directed to Semenya around her hyperandrogenism and the recent IAAF ruling of the female category in track and field that states: “women racing distances between 400m and the mile must adhere to a new upper limit for testosterone of five nanomoles per litre.”Nike has, in celebration of the 30th birthday of their ‘Just Do It’ pay offline, released a series of ads starring powerful athletes from around the world. The first ad features former NFL player Colin Kaepernick. Other global sporting stars also included in the Kaepernick ad are Serena Williams and LeBron James.As the Nation Brand, we will continue to stand behind Caster. We applaud her for being an inspiration to the nation with every new stride and achievement.last_img read more

New country souvenir, Costa Rica, with Geocache of the Week: Rainbow Valley Cache

first_img SharePrint RelatedNew country souvenir, Cuba, with Geocache of the Week: Virtual Reward – FusterlandiaAugust 21, 2019In “community”It’s time to get stealthy. – Atomium – stealth challenge (Expo58) (GC1EG4C) – Geocache of the WeekDecember 11, 2014In “Geocache of the Week”New country souvenir, United Arab Emirates, with Geocache of the Week: Burj Khalifa a Virtual RewardNovember 20, 2019In “Community” TraditionalGC221QZby Wolf64 + Mikkky Difficulty:1.5Terrain:1.5 Today we release a new country/regional souvenir for Costa Rica! If you have found a geocache in Costa Rica, you automatically receive the souvenir on your profile.Costa Rica is often said to be one of the happiest countries in the world. Known for their outstanding democracy and quality of life, Costa Ricans are often said to live the Pura Vida, literally “pure life.” Though it might be a tiny country, it has a mighty amount of flora and fauna. It represents about 5 percent of the world’s biodiversity. The Monteverde cloud forest alone hosts over 100 species of mammals, 400 species of birds, 2,500 species of plants—and of course, one Geocache of the Week!It’s easy to see how our Geocache of the Week earned its name! Image by goldeneagles.Rainbow Valley Cache is an unassuming hide, located at the edge of the Cloud Forest. IT’s a classic container with room for plenty of swag that will leave both you and any young geocacher you bring with smiles upon your logs and your faces. The logs don’t lie! It certainly is a beautiful view. Image by 2010august.Take a hike over a vibrant blue suspension bridge or celebrate your find with a cool drink in a treehouse bar as you explore the astounding surroundings.Adventure is out there! Image by 2010August.And of course, check out the wildlife teeming in the area. A monkey and a coati—a small sampling of the animals you’ll discover en route to this cache. Images by CanadianRockies.Speaking of wildlife, when you find the cache, don’t forget to camouflage it appropriately or, as the cache page warns, the “monkeys will steal it!”Continue to explore some of the most amazing geocaches around the world.Check out all of the Geocaches of the Week on the Geocaching blog. If you would like to nominate a Geocache of the Week, fill out this form.Share with your Friends:More Location:Costa RicaN 10° 18.566′ W 084° 49.728′last_img read more

Barcelona ready to unleash rested Messi

first_imgBarcelona boss Ernesto Valverde admits it is a boost that Lionel Messi was able to rest during the international break.The forward declared himself unavailable for Argentina’s friendly matches against Guatemala and Colombia, which took place in the United States during the past week.It means Messi will have had close to two weeks off between the 8-2 thrashing of Huesca and Saturday’s game against Real Sociedad at Anoeta, where Barca have won only once in their previous eight visits. Article continues below Editors’ Picks Man Utd ready to spend big on Sancho and Haaland in January Who is Marcus Thuram? Lilian’s son who is top of the Bundesliga with Borussia Monchengladbach Brazil, beware! Messi and Argentina out for revenge after Copa controversy Best player in MLS? Zlatan wasn’t even the best player in LA! Valverde is prepared to rotate his squad given Barca have five matches in 15 days, but he is glad to have his number 10 well-rested.”Those players [who didn’t play in the international break] didn’t have that wear,” he told a news conference. “They’ve had more time to train, to rest.”There’s that tiring experience of travelling, a lot of air miles, other players have had to do that, so generally it’s better for us, I won’t deny that.”We always expect the best from Messi, as we do from any player, regardless of whether there’s a midweek game or not. We knew when players had to travel for their national teams and there are away games immediately afterwards, of course it’s a huge advantage to have him rested for the last week.”We have another game in just three days’ time. Some of the players have been playing with small fitness issues so, yes, I might make some changes.”020918 Barcelona Huesca Arturo Vidal Luis Suárez Jordi AlbaValverde suggested Arthur and Arturo Vidal are likely to become more involved in the coming weeks, although the Brazil midfielder is not in the squad to face Sociedad.”Yes, I’ve got to find room for them all and hopefully when they play we’ll win our games,” Valverde said of the midfield duo. “We have a lot of competition for places.”Vidal had to do a lot of travelling this week but we have a lot of hopes pinned on them. Perhaps this isn’t the best week for them. They’ve had some long trips.”Valverde went on to praise the commitment levels of Ousmane Dembele, who endured a tough first season with injury problems.”He’s the same player. He’s great going forward, great at finding space, he scores goals. We also want consistency from him,” said Valverde.”He’s working very hard in training but essentially he is the same player. There will be big games when we need him to rise to the occasion, but that’s his job.”last_img read more

David Ortiz Receives Qualifying Offer from Red Sox

David Ortiz received a qualifying offer from the Boston Red Sox on Friday for $13. 3 million before Friday’s the 5 p.m. ET deadline set by MLB.The team and Ortiz are negotiating a two-year deal that is “very close” to being completed according to sources, but the exact amount of the contract is still being negotiated.“David is someone who we feel strongly about bringing back, and we’re trying to figure out a way to do that and we hope that happens,” Red Sox general manager Ben Cherington said earlier this week.Ortiz will become a free agent by midnight Friday if they can’t come to an agreement, which will allow him to talk to other teams. The qualifying offer is less than the $14.48 million he earned in 2012, but has until Nov. 9 to accept the offer. The Red Sox strategically gave the designated hitter the qualifying to ensure if he signs with another team they can receive draft picks as compensation.One of the teams that has expressed interest in Ortiz is the Texas Rangers. They envision Ortiz as a left-handed hitter who could replace Josh Hamilton, who is a free agent and received a qualifying offer from the Rangers. The Rangers feel Ortiz could the clubhouse more of an edge.Ortiz will turn 37 on Nov. 18, missed the last 71 of 72 games due to a right Achilles strain he suffered on July 16. The eight-time All-Star finished the season with a 23 home runs, 60 RBIs, and a .318 batting average in 90 games.In 2003, Ortiz joined the Red Sox and was a central figure in helping the club win the 2004 and 2007 World Series. One-year deals are noting new to Ortiz, who has been in one each of the past two seasons. The Red Sox exercised his $12.5 million option for 2011, and Ortiz accepted arbitration in 2012, settling on a $14.575 million salary.Ortiz has made his desire to stay in Boston public and is fond of team’s new manager, John Farrell.“Something will get done,” Ortiz told the Boston Globe about signing a new deal with the team. “I feel good about it.” read more

Source Interlink Significantly Deleverages Business

first_imgSource Interlink has reached an agreement with majority investor GoldenTree Asset Management to recapitalize the company. The deal “significantly deleverages” each of the company’s core business units, Source Interlink Media and Source Interlink Distribution, while increasing GoldenTree’s stake in the group.”The tremendously improved capital structure will provide both Source Interlink Media and Source Interlink Distribution with the ability to maximize transformational opportunities across their respective industries,” says Michael Sullivan, president and CEO of Source Interlink, in a statement. “This transaction will put both businesses in better positions to strengthen strategic partnerships and make investments to enhance their position in their respective industries.”Stephanie Justice, executive vice president and chief administrative officer for Source Interlink, tells FOLIO: that there will be no layoffs or reorganization associated with the recapitalization. Justice also notes that the recapitalization was balanced in “an equitable fashion” between the two major divisions. The move comes four years after Source Interlink filed for Chapter 11 bankruptcy protection. The company—then publically-traded—remerged under private ownership, shedding $1 billion in debt-to-equity swaps with creditors.Sullivan was brought on a year later amidst whispers of a possible sale.”This is a very typical move that most media companies that were acquired by private equity firms in the past 5-7 years are making,” says Reed Phillips, CEO and managing partner of investment firm DeSilva + Phillips, in an email to FOLIO:. “Most of these buyouts were overleveraged and can no longer support the level of debt that was originally put on the businesses, and are thus being restructured. That simply means that debtholders take equity in exchange for reducing the debt load on the company and the equity holders see their positions shrink to the point where many are no longer in control of the business. The net result is that this is very good news for the company because they can start to run their businesses without the constraints they had when the company was overleveraged.” Skateboarder Magazine Shuts DownSkateboarder Magazine killed most of its print circulation to try a digital-first approach in May, but the experiment was short-lived. The 49-year-old title, operated by Source Interlink Media’s enthusiast GrindMedia division, is ceasing regular publication after the release of its current issue. All platforms will be shut down by October 15.Norb Garrett, senior vice president and group publisher at GrindMedia, explained the rationale for the decision in a video on the brand’s website. Garrett blames the skateboarding market rather than the performance of the digital magazine itself.”We’d been, as you have, super stoked on everything we’d been doing digitally with the magazine in the last three issues-growing audience, expanding to over 180 countries-and just done a great job with just leading first with digital,” he says. “So the decision today has nothing to do with whether the digital mag was working or not. It really has everything to do with how the business is, unfortunately. The business, overall, in the skate industry, as you guys all know, is super tough right now.”Despite the challenges posed by the industry however, GrindMedia will continue to publish TransWorld Skateboarding. Garrett hinted at the possibility of special collaborative projects between the two titles in the future.It’s the third time Skateboarder Magazine has shut down—once in late 1960s before coming back in 1975, and then again in the 1980s before returning in 1999.Justice says the decision to close Skateboarder was unrelated to the recapitalization deal.*Editor’s note: This story was updated to include comments from Stephanie Justice. To stay updated on the latest FOLIO: news, become a Facebook fan and follow us on Twitter!More on this topic Skateboarder Magazine Goes Digital-First Primedia Enthusiast Source Interlink Sells CD-DVD Distribution Business Source Interlink Files for Bankruptcy Source Interlink’s GrindMedia Acquires Baseball America Source Interlink to Emerge From Chapter 11Just In This Just In: Magazines Are Not TV Networks TIME Names New Sales, Marketing Leads | People on the Move PE Firm Acquires Majority Stake in Industry Dive BabyCenter Sold to Ziff Davis Parent J2 Media | News & Notes Meredith Corp. Makes Digital-Side Promotions | People on the Move Editor & Publisher Magazine Sold to Digital Media ConsultantPowered bylast_img read more