The Economist got it right - SAIRR

SAIRR: The Economist got it right

The Institute is in broad agreement with a report and editorial in The Economist of 19 October 2012 that is critical of South Africa and questions the quality of leadership in the country.

The Economist is an influential global newspaper and its reports on South Africa are certain to influence investor and other opinion about the country. The Institute has read both reports and can say that the data cited by The Economist is broadly accurate.

The Institute is also broadly in agreement with the conclusions reached by The Economist. The Institute's deputy chief executive, Frans Cronje, said "It can surely not come as a surprise to anyone who has paid close attention to South Africa over the past five years that we are on an unsustainable economic and political trajectory.

This is not to say that the country has not made any progress in terms of areas such as living standards or service delivery, as the Institute has repeatedly pointed out. Rather, it is to say that without dramatic shifts in policy it is no longer possible for the current government to meet the demands of actors within South African society."

"The Economist reports will obviously have an impact on investor sentiment. In the short term the impact will be negative and will cause damage to the economy."

"In the long term, however, it will alert people, in Government, the business world, and outside, to the need for urgent policy reform."

"What has happened in the weeks since the Marikana shooting, both in terms of ratings agency downgrades and the latest report from The Economist, is a much-needed correction in opinion about South Africa.

For too long South Africa has benefitted from the aura of its peaceful transition. For this reason the change of sentiment towards the country will ultimately be beneficial as it will lead to a more accurate assessment of the challenges confronting South Africa and its government."

Statement issued by the SAIRR, October 19 2012

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There will be no change and no influence. Most investors get private studies done before they make significant investments..I cannot see this report and editorial influencing investors and other opinion about the country. by . on October 19 2012, 16:45 Find this comment inappropriate? Report it

Dotty's lost the plot None so blind as those who will not see..... by Wendy on October 19 2012, 21:13 Find this comment inappropriate? Report it

@NO-change-NO-influence...really...?... ...you can bs some of the public, some of the time, Dot ! The last 18 years have seen global resource PLCs milking their SA assets, culling fresh money in, & looking elsewhere. Example ANGLO before1994 = about 80% + SA assets. ANGLO . .more today = about 10-15% max SA assets. ANGLO was THE biggest element of the JSE and effectively was the SA economy with one or two other big boys. How many are left in SA today ? So, if ANGLO's SA assets die or are stolen tomorrow, it will simply be a balance sheet adjustment (the share price has already factored the risk of in). Ditto SAB, OLD MUTUAL, BHP BILLITON, deBEERS, ....in fact all the big boys. LOOK at who owns who-what in SA today..... the birds have flown - long ago. The only "steal" left is in SA.... and if the ANCpf crashes that - they'll crash the nation's company car. Time to wake up, grow up, & learn to drive (and put competent drivers at the controls while you learn). SA will keep foreign investment & expertise today if it behaves responsibly to all concerned both within & without SA. If the ANCpf (or any other SA administration) fails to buy into such facts of big global business, then they will stew in their own juice.... along with the SA people who are unable to escape. FIRST STEP - cull the rabid racist rhetoric - its obsolete & is heard as terror-speak. NOBODY owes SA. . .less by John Austin on October 19 2012, 22:55 Find this comment inappropriate? Report it

@John Austin For every sale there had to be a buyer... by . on October 21 2012, 21:12 Find this comment inappropriate? Report it

And one such is the fact That we are running out of raw materials, we have 50, maybe 60 years left and then South Afrians need an income from something else. The oil runs out, the gold runs out. Going. Going. Gone. by Nasdaq7 on October 21 2012, 22:25 Find this comment inappropriate? Report it

@ . on October 21 2012, 21:12 "For every sale there had to be a buyer..." Quite, Dot.... The BEE'ed of SApf have acquired huge slices along with control of all the SA stuff. The SA "real" big resource & business heads have gone to havens to establish their global . .more HQ's.... in jurisdictions where their harvests cannot be reaped by those who have n ot sown. The SA assets are now effectively "ring-fenced" . The touch & go days were the first 10 years - hence the happy "Rainbow" kissy cuddly era. By now, with appropriate re-organisations, the new order Lance Corporals of SA Mining, Industry, & Business, better wise-up smart or go tits up "one-time". AND BTW, NASDAQ7's comment under your quip after mine is more than poignant. Chikurubi-Resources-Analyst :) (& Pension Planning Adviser - for a fee) . .less by John Austin on October 22 2012, 00:36 Find this comment inappropriate? Report it

Dot what a moron. for every sale there had to be a buyer. i just bought a house on auction. shame. the people who couldnt afford the house were there screaming. the 4 year old with cerebral palsy had this especial equipment in the house and . .more everything. i will just bash it all down. i dont need it. but what a bargain. apparently the old owner only had a couple of months before the house was his. thats why i got it at such a steal. but dot, you are so right. for every seller there is a buyer. i will just give it a paint job and then sell it off for a profit. happy days, but i must just get the picture of that young girl out my head. i wonder if this would have happened if the old guy wasnt retrenched. apparently they need more representivity. . .less by Eddie on October 22 2012, 07:39 Find this comment inappropriate? Report it

The SAIRR is discredited South African Institute of Race Relations had to back-track on initially reporting that the number of attacks per 100,000 farmers is no worse than attacks per 100,000 of the general population. But in true propaganda spirit, their back-track manoeuvre is . .more published in Afrikaans media, so limiting the truth to those who understand Afrikaans.. They have revise dtheir sloppy research to "The research indicates that in 2011 farmers were murdered at a rate of 68 per 100,000. The murder rate for general population was 31 per 100,000." . .less by mike on October 22 2012, 08:16 Find this comment inappropriate? Report it

Same old articles I have been reading the Economist for the past 5 years and I can tell you there was nothing new in that article. They wrote the same thing as previous special reports on South Africa. What a shame! by Mogotsi on October 22 2012, 10:23 Find this comment inappropriate? Report it

The Economist didn't mention 500 000 murders in 18 years South Africa's defining fact. How did they get it right? by Brett on October 22 2012, 15:09 Find this comment inappropriate? Report it

@ Brett It would be more accurate to say that the Economist got some of it right. First world analysis of things African can never be truly correct as first world logic is applied and politically correct minds write the script. However even the liberal media . .more cannot ignore the murder, mayhem and general anarchy. . .less by Wendy on October 22 2012, 21:01 Find this comment inappropriate? Report it

@Eddie My first thought was to throw everything I could at you then realized that if you hadn't bought the house someone else would have. The truth of the matter is that this is happening at an alarming rate and with the never ending policies of depriving . .more Whites of jobs (BEE/AA etc policies), will continue to escalate. And don't think any other "race" group is safe, the next to be "attacked" will be the Coloured and Indian population, followed by tribes until there are only two left, Khosa and Zulus. Hey, just realized that, that would take us right back to the 1600's, the same tribes fighting one another. So there really is a circle to life. Apart from the human suffering there are countless pets seeking homes because of the situation facing their owners. At this point please DO NOT advertise on any For Sale media, "Good home required", rather contact a reputable animal welfare organization who will do the necessary checks, with follow ups and ensure your pets are both "chipped" & sterilized. . .less by Open Minded on October 22 2012, 21:19 Find this comment inappropriate? Report it

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