What should be done to solve South Africa’s economic problems?

rpm

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#1
We are interested in your opinion for an article about South Africa’s economic problems.

--What do you think should be done to solve South Africa’s economic problems?

We want your honest opinion of why you think South Africa’s economy is struggling, and what you think the government and businesses should do to fix these problems.
 

rpm

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#3
There are a few things which I think will help:
  • Have business-friendly policies, including tax cuts for small businesses and incentives to employ interns.
  • Make business ownership rights (property rights) a priority. People must feel safe to invest in South Africa.
  • Focus on addressing unemployment instead of inequality. A free market system often creates inequality, but that can be a good sign in many cases.
  • Make it easier to hire and fire people, especially in small businesses. Tough laws against dismissals make small businesses hesitant to employ staff.
 

Sinbad

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#5
Open SA for business. Investor and business friendly tax regime, labour laws.
Clamp down super hard on corruption or maladministration. LONG jail terms.
Get rid of SADTU and immediately intervene in the education system - performance management and contracts for teachers. Remove the right to education from kids. Disruptive kids get expelled, sorry for you, here's your toilet-scrubbing brush. Abandon "no kid left behind". Proper standards and pass marks, to ensure that the youth have knowledge and skills to contribute to the economy. Maybe incentivise hard sciences and disincentivise crap like political science.
Reinstate the trade schools and technicons. Let people learn real world practical skills.
Streamline government - cut down the wastage dramatically
Privatise or abandon SOEs that perform badly.
 

Hemi300c

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#6
There are a few things which I think will help:
  • Have business-friendly policies, including tax cuts for small businesses and incentives to employ interns.
  • Make business ownership rights (property rights) a priority. People must feel safe to invest in South Africa.
  • Focus on addressing unemployment instead of inequality. A free market system often creates inequality, but that can be a good sign in many cases.
  • Make it easier to hire and fire people, especially in small businesses. Tough laws against dismissals make small businesses hesitant to employ staff.
And do everything possible to stop crime and corruption and bring the guilty to book and recover everything possible.

And of course stop over spending by all government and their departments.

Do away with BEE of course
 

ToxicBunny

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#7
There are a few things which I think will help:
  • Have business-friendly policies, including tax cuts for small businesses and incentives to employ interns.
  • Make business ownership rights (property rights) a priority. People must feel safe to invest in South Africa.
  • Focus on addressing unemployment instead of inequality. A free market system often creates inequality, but that can be a good sign in many cases.
  • Make it easier to hire and fire people, especially in small businesses. Tough laws against dismissals make small businesses hesitant to employ staff.
Everything but that last point I agree with...

Its not difficult to hire and fire people in this country at all, it just has to be done according to the book....
 

Sinbad

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#8
Everything but that last point I agree with...

Its not difficult to hire and fire people in this country at all, it just has to be done according to the book....
Problem is, even if you do it by the book you still get hauled in front of the CCMA by chancers. Disruptive, stressful and unnecessary.
 

ToxicBunny

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#9
Problem is, even if you do it by the book you still get hauled in front of the CCMA by chancers. Disruptive, stressful and unnecessary.
Agreed...

BUT, the flip side is companies (smaller ones mostly) abuse the system already... so making it less stringent will lead to more abuse in my opinion, and won't necessarily increase employment. Better education on how the current system works for both Employers and Employees would possibly be a better solution.
 

lucifir

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#10
1. Scrap EWC
2. All public office bearers must make their tax, salary,assets,etc. public information. Prevent corruption, as finances can easily be monitored by public.
3. Limit the power of the unions, as SADTU is too powerful and holds the country and the future of the kids to ransom.
4. Improve policing services to fight crime, maybe introduction performance management of some sort to get crime down
 

Mista_Mobsta

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#11
My 10cents

1) Increase budget for education and education related services IE: competitive salaries that will attract great teachers and invest in new schools

2) Create a central hub in each and every major suburb that has the following satellite stations: Police Station/Clinic/Recycling Centre/Court/Consolidated center for Home Affairs; Licenses; Municipal Services

3) Create a SLA performance contract environment when Govt-Private or Govt-Govt services are rendered

4) Remove the power of labor unions by replacing them with a better functioning and improved CCMA

5) Approve Repo Rate loans earmarked for education loans

6) Remove the red tape when dealing with council regarding re-zoning when investing in essential infrastructure development

7) Reduce cost of living by streamlining SOE's, maintaining current infrastructure and adding to where needed

8) Improving the speed of the judiciary by streamlining the judicial process

9) Improve police training and visibility and remove causes for corrupt activities

10) Stop race related benefits/policies and replace with free market foundations
 

Cius

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#12
Several things hamper the economy, key things that would enable it for me are:

1) Take power away from unions. Unions literally get away with murder if things don't go their way and are above the law currently. They need to be reigned in to make SA more business friendly
2) Fix math education. Matric math pass marks (higher grade level) have consistently fallen since the early 90's. This needs to be reversed. This ties in strongly with SADTU as they have managed to block any and all performance metrics on teachers. Economic growth is closely tied to engineers, accountants, scientists, and technology workers. Without math we are crippled.
3) Make it easy to fire someone. If you can get rid of a bad apple easily most businesses would not mind taking a chance on employing more people. It has become so hard to dismiss bad employees most small businesses are avoiding hiring anyone and have made it the last resort.
4) Stop corruption. The public is now paying for corruption via increased taxes and rates for electricity etc. This hampers the economy as they have less cash to spend elsewhere. Cut out the incompetence and corruption and get the state working smoothly again and the economy will be able to grow again.
 
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#14
scrap and rewrite The Labour Relations Act (LRA), Act 66 of 1995. For as long as companies who have the money are not willing to employ as once employed you basically have to be really stupid to be fired, the economy will not grow. Economy may be stagnant but with the population growing, GDP per capita is sliding fast.
 

konfab

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#15
Embrace anarcho-capitalism as the true way for the country

More realistically though:
1) Get rid of all BEE/AA.
2) Get rid of the RAF and its stupid levy.
3) Make it illegal for the treasury to back loans to SOE.
4) Create more special economic zones, focusing on developing the townships.
5) Cut the cabinet size to 16.
6) Constitutional amendment to limit the government debt of the country to 5% GDP, with a provision that parliament can temporarily raise the limit to 15% GDP for 2 years if the president declares a state of emergency, then it has to come down for 2 years.
 

pinball wizard

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#16
Pinball's Economic Stimulus Package:

Treasury gives every citizen R1million. Everyone is taxed at a flat rate of 10% on that one off donation. Everyone under the age of 18 has their R900k locked away in government bonds until they turn 18.
 

dunkyd

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#17
Close all SOE's bank accounts and have one central payer for all state departments. 6 signatories
 
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