The Economy of South Africa
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- เผยแพร่เมื่อ 20 ก.ย. 2024
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South Africa is an economy that is really important to understand as a kind of potential outcome case study of inequality gone bad. The nation itself, on paper at least is not so terrible, it is actually one of if not the wealthiest nation in all of Africa, trading back and forth quite frequently with Nigeria.
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📚 Want to learn more about the economy of South Africa? We recommend reading "Diamonds, Gold, and War: The British, the Boers, and the Making of South Africa",
by Martin Meredith 👉amzn.to/2MIvzNK (as an Amazon Associate, we earn from qualifying purchases)
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#Economics #SouthAfrica #VideoEssay
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Sources & Citations -
Marais, H., 2001. South Africa: Limits to change: The political economy of transition
Fine, B., 2018. The political economy of South Africa: From minerals-energy complex to industrialisation
Magubane, B., 1979. The political economy of race and class in South Africa (Vol. 167). New York: Monthly Review Press.
Power, M., Newell, P., Baker, L., Bulkeley, H., Kirshner, J. and Smith, A., 2016. The political economy of energy transitions in Mozambique and South Africa: The role of the Rising Powers. Energy Research & Social Science
Arrow, K., Bowles, S. and Durlauf, S.N. eds., 2018. Meritocracy and economic inequality. Princeton University Press.
Reeves, A., 2017. Economics: The architecture of inequality. Nature, 543
Assouad, L., Chancel, L. and Morgan, M., 2018, May. Extreme Inequality: Evidence from Brazil, India, and South Africa. In AEA Papers and Proceeding
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As someone from South Africa who's never really understood my own country's economy, I appreciate this video it was very educational, especially since it came from an outside perspective.
Why didn't you include government spending and the poor quality of government services, or the constant buy out of state owned companies? Or the even poorer education system or at least some of the corruption where billions of Rands mysteriously disappear?
Do Botswana now
So what can be done to make South Africa better because we are struggling now more than ever
At 2:05 I imagined the cyberpunk 2099 trailer music starting to play during that fade to futuristic high rises and the camera descending down to the everyday citizen's view.
Though between 3:55 - 4:33 it's kinda like everyone in a board meeting would just be nodding our head, smiling and agreeing...
...while waiting for the naive idealist to leave the room so we can go back to discussing how to meet the needs of influential shareholders and turning our worker classes against each other so they can't unite to ask for wages that would give them the social mobility the idealist was rambling on about.
> china has a gini coefficient of 0.47
> shows 0.26
haha oh boy, throw it into the mistakes of 2020 video.
@@EconomicsExplained you've been pumping these out lately.
I don't know about everyone else, but I don't mind waiting a couple extra days per video if you're falling behind
@@andrasbeke3012 All these recent errors are non critical. They don't matter, especially when it's one or two per video. It's very understandable if in a 1000 second video, [editing] errors slip into 5 seconds.
@Boots Jew ??
@@EconomicsExplained
Excelent video anyway.
Next: Economy of Greece
A black screen for ten minutes.
Monetum 1 at least itd be the most accurate graphics on this channel
Wait Greece has an economy.....
Monetum 1 bruh 💀💀
@donk afxxx It was a joke but k
@donk afxxx Ehh fair enough
Economy of Brazil ... the sleeping giant that never wakes up
Everything he said about South Africa in this video also applies to Brazil: High Crime due to High Inequality and Capital Flight due to High Crime. Half of my family, me included, already moved abroad.
Well I cant speak for other states, but I recently migrated from Venezuela to Rio Grande do Sul, and quite honestly it feels near-european to me, I know you all feel like in some sort of economic crisis, but to me entertaining the notion is kinda bizarre.
At least crime isnt high enough to intefere with daily life (never been mugged, and have actually seen police caught car thieves a couple times already).
The only real problem is the current unemployement, which overtime can be solved by incentivizing brazilian entepeneurs with more lax entry regulations and loan. (Not a fan of inviting foreign investment as most profits bleed out of the country).
Same with Argentina.
True
@@tumamaencosplay
Exactly.
Discussing South Africa’s problems without mentioning mismanagement, incompetence and corruption is ridiculous!
In other words, ANC
Tats true ANC has to do a better. But also the citizen has to participate in making to change that especially people who are aware & in position to affect change.
Kinda what our country is built on these days, would you not say
True.... But because I love my country I will do anything I can to make change. If everyone who has a positive outlook or rational in South African can say I am gonna be or contribute to the Change I want to see. South Africa will be what is supposed to be.... Great and powerful. Here is a thought Ace magashule is gonna go to jail after tat 1000s of government official are gonna get aarested probably in a month or two where by the only thing you will see on TV is people getting arrested after tat. For the first time young people are gonna be in government. My point change is coming and it will be immediate mark my words.
You mean that the coloureds can run a country.
As a South African I believe our politics, economic policies and corruption play a big role in keeping most South Africans back. The government has failed us deeply in attracting investment and improving education.
Couldn’t have said it better!
Have you ever thought that maybe they actually do not want to improve the education system. Because education empowers people to think for themselves, hence they can’t be easily manipulated by the government. So as long as they can manipulate their people for their gain, they do not care.
@@leonardodefreitas6790 100%. That’s the only way they will stay in power. I believe most of our politicians and ministers are grossly incompetent and mediocre. They could never govern a country that has people that are well educated and hold them accountable.
People get the rulers they deserve.
people underestimate what apartheid did to the nation. if wealth is largely controlled by white people it means it’s largely going to circulate in those communities and has little trickle down effect
“This is South Africa”
*shows Wakanda*
WolraadWoltemade 1652 stfu
Shows pictures from other african countries
Exactly what I saw .... people from other countries
The city he had shown,was Cape Town,how do I know this?BECAUSE I LIVE IN IT!You stupid know-it-als should do your research before you make yourself look like a fool
@@TamimLB Wolraadwoltemade makes a good point
"This is South Africa"
*Shows South Africa*
I see waht u did ther
My man!
Shame
Shows nairobi, Kenya at 1:22
Definitely not South African videos
"The income gini coefficient of
China is 0.47"
*Shows a penguin eating caviar
Prakhar Choudhary and it shows 0.26
@@BigBoss-ps6vk The joke was wasted on you
Big Boss
You fool
You abdolute buffoon
You fell for one of the classic blunders yet again.
I didn’t want to release my weapon of mass destruction this early, but you leave me no choice...
r/woooooooooooosh
Life is but a series of r/wooshes
@@BigBoss-ps6vk shut up normie
South africa reminds me of someone with great potential but once he wakes up, he remembers how comfortable his bed is and then he puts his alert on snooze 5 minutes more.
No, it's not a choice. The poor Africans can't do better.
@@grasonicus it is, stop white-knighting.
I refuse to accept that actions dont have consequences. Or that we should go on with spendings to people who dont appreciate it
As a South African who's a part of the richer 2%, I have to agree.
Honestly, the only problem SA really has, that economists fail to take into account, is corruption. The ANC is a shadow of its former self. It's been corrupted to the core and no longer serves the best interests of the people. It only serves the best interests of itself, if the ANC didn't fall into corruption as it did, We'd be an equal, first world country, or at least, extremely close to being an equal first world country by now
@@grasonicus Hm, kinda true, kinda not.
Seems like I do understand now what you meant. So I take back my saying about white-knighting.
😂I'm a South African and you just cracked me up.
So full disclosure, I am part of the 2% you speak of and live in South Africa. I agree that the apartheid hangover is still knocking us between the eyes. Problem is, under every imaginable metric the poor has become poorer since the end of apartheid. They have worse education and healthcare, rural infrastructure is crumbling and have almost no employable skill. The government is wrecked by corruption and infighting, they inherited an unequal society with fantastic public industries. Over the last 26 years they have pushed all of these to the brink of bankruptcy. Our current leaders are doing all they can to make a bad situation into a very bad situation. And that is our real problem in 2020.
Exactly my thoughts. South Africa has some good public institutions that still work, I mean, there are good roads, good food safety, the infrastructure more or less works. Maybe the government and high ranking ANC are corrupt, but I don't feel it so much in everyday life. But seriously, this guy should talk about all those natural resources ending up in the hands of Zuma's buddies, and how the ANC uses race and apartheid to fool the general public into not seeing how little they are actually doing for the people they are elected to represent.
Christo, as a member of the, perhaps, 3% rather than 2%, I must say I agree. The ramifications of Apartheid are still being felt, but we've had a quarter of a century, man. Surely by now thing should be waaaay better. The government sucks and has definitely contributed to the problem, but honestly, most South Africans have an attitude problem. Most of us feel entitled to help from the government and are waiting for them to save us. People need to take personal responsibility, man. It's not easy, but it's far from impossible.
I hear that the anc is pushing anti-white racism and that it might come to a Simbabwe-Like situation. Do you guys think that this threat is real?
@@weatherwaxusefullhints2939 Eh probably not the information online about South Africa is heavily propogandandized by right wing groups the reality on the ground in South Africa is racial tension is no where near the level of something like Zimbabwe happening South Africa's institutions are too strong for something like that to ever happen unless some drastic changes happen at some point in the future but our free elections/press and constitution as well as judiciary would prevent it from getting to that stage as things stand right now
@@weatherwaxusefullhints2939 For reference, while I am not poor, I also don't earn enough to need to pay taxes.
It is unfortunately true. We are currently where Zimbabwe was 10 years before thing went bad. At least I hope its 10 years and not 5. Our leaders are playing the same kind of race games that are currently happening in America.
Unfortunately there is a large group of poor and uneducated people who are genuinely getting the short end of the stick. So I do not blame them that they are susceptible to our leaders blaming every bad thing on apartheid and thus white people.
To re-use a quote from Thomas Sowell in a different context. We can talk about the impact of apartheid on inequality bu looking at 1994 figures. But we cannot ignore the effect of 25 years of ANC rule, most of which they had 2/3 majority in our parliament and thus total control of our laws. Limited only by our constitution.
No joke, when I was at university one of the first questions Computer Science students would ask each other was "So where are you moving when you graduate?"
Generally Canada, New Zealand, Australia and the UK.
You can't blame them for wanting to seek a safer life.
Gabriel Fraser I assume from context that you're from South Africa?
@@briancheng8243 yes.
Big Tex The point is that you have the same kinds of problems in most of post colonialist Africa.(1) A corrupt political elite that sometimes works in collusion with corrupt individuals in wealthy developed countries to abuse taxpayers money for personal gain thus literally “bleeding the country dry”. (2) Too much reliance on corrupt political leaders who claim to be “revolutinaties” with a vested interest in everyones welfare.Most of the time these leaders who really belong in jail rather than in parliament stay on in power because people still believe they are “revolutionaries” who want to transformthe economy from “an exploitative capitalist one” (dominated by whites in the case of South Africa) to an “egalitarian socialist” one in which “everyone is well off”.In reality these (criminals) simply line their pockets as well as those of friends and relatives without any concern for anyone else.
(4) Sadly anyone who opposes these polical criminals in South Africa is often labelled an “ally of White Monopoly Capital.Owing to its apartheid past, the rich are still predominantly white while the poor arestill predominantly black. It is therefore easy for politicians to racialise the problem for political gain instead of attempting to solve it.
Thanda Sibisi Eish, our sad reality indeed.
Are they white? If you are a South African then you will answer
"China has a gini coefficient of 0.47"
Shows Turkey
Joke? I only see Shanghai...
"THIS is South Africa"
*shows Iran*
Where ?
@@ibejibenson1783 It's just a joke, based on that mistake last video.
@@-dennis3755 ohh 😅😅😅
This is going to be the running joke in the comments section of EE videos from now on isn't it.
@@CockatooDude Yes, and i for one am looking forward to it
I am a South African and a few days ago my mom's phone got stolen, her car also got hijacked many years ago and we are in Johannesburg, so u are right that the crime rates are high in South Africa.
This what we call anecdotal evidence, it's not a sign of increasing crime. (not disagreeing on the increase in crime)
Nope in south Africa most of the crimes aren't done with malicious intent its for the money cause the way they see it anyone with a decent life style is part of the the elite rich group
@@daworld5446 So it is ok?
@@angelicadickson8666 no, the crime is bad, we get some extreme crime but most of the time crime can be avoided e.g dont go outside at night, use roads were there a more people.
When went to visit a relative in Jozi I heard gunfire from three different places
"This is Germany"
Shows Poland
Wait a sec...
*Blitzkrieg Intensifies*
Even after 60+ years, too soon
Blitzkrieg*
"This is South Africa."
*Shows Mars*
Fairly accurate, actually:
- almost no water
- would kill you quickly
- so far away most people forget to think about it
- has associations with Elon Musk.
@@hynjus001
Haha Lawl
FreeGoro 🤣🤣🤣🤣🤣
@@hynjus001 you're right on everything there except for the water problems... it's kinda like California in the way recent droughts have hurt it a lot but it's generally fine...
With this excuse you are not gonna be growing. Sounds to me like an excuse for laziness.
There is also the issue that your middle and upper classes are getting fed up watching their tax money be squandered.
Billions go missing or are part of "irregular expenditures" as the government calls it. The parastatal companies bleed money and are constantly being bailed out to the tune of billions by the taxpayer. We have a power provider that has a legal monopoly that spent years ignoring infrastructure maintenance while awarding performance bonuses and golden handshakes for tens of millions, so now we have rolling blackouts. Corruption infects every level of government, with nepotism and chronyism helping people get tenders that never see any actual results but the money has vanished.
We see these things every day and eventually get fed up with it and decide that things would be better elsewhere. It all adds into the stories on the news about 5 people being killed in a shooting, girl kidnapped, 60 thousand rand spent on KFC at a conference etc. Why stay when your hard-earned money is being thrown into the pocket of corrupt people?
Well said
Facts bro✊
and that's just the tip of the iceberg
Moved to Australia eleven years ago. Best decision I ever made...
I mean, I'm on fire, but at least I'm not in South Africa.
mans a strait up fax machine
“To move into a more technical profession”
*Shows someone building Ikea furniture* (9:51)
I mean, you need a pretty high iq to build an Ikea furniture...
"This is South Africa"
*Shows Ikea*
I was literally nodding along to everything he said, this place has so much potential, we're like Africa's Brazil, but our leaders let us down smh.
Nigeria is africas brazil
Your race let’s you down. I assume you already know this…..
@@robertoenriquegarcia2064 it has nothing to with race. If you want to blame race talk about how the white government in SA drove black people into poverty first, you racist
@@wuthurer how exactly did the white government drive black people into poverty? South African blacks were the richest blacks in all of africa
@@Luca-nu2zg this fool saddly will not reply because it has no idea what its talking about.
I never knew South Africa was so beautiful, greenery sliding off of humble mountains, pristine blue waters of the ocean, smooth roads winding up the hills. It's really incredibly beautiful.
The good videos are of the some best part of south africa, cape town. The bad video aren't of south africa.
It's stunningly beautiful here. Deserts to forests to rolling savannah. Unfortunately our leaders have always let us down. First the white guys under Apartheid and now everyone else.
@@karabosepeng9200 Yeah, also that only "2% of the population is living well" is bs. And also "gated communities with rich people who cant go anywhere because they will be kidnaped" is also a lie. When has a rich person ever been kidnaped in SA?
Thank you
@@josetheman239 www.news24.com/news24/southafrica/news/limpopo-businessman-kidnapped-car-found-abandoned-20210410
''This is Finland''
*shows Estonia*
I literally came here searching for this comment 😂👍
Eh Estonia is basically Finland let’s be honest
"This is South Africa." -1:22 that is Nairobi you just showed.
HAHAHAHAHAHA !!!
lol...near TUK ama?
@@thragg00 The University of Nairobi
I realized the same thing immediately.
Haha was just about to say 'isn't that UoN
i was born and raised in rural south africa, our education system is honestly amongst the worst out there. my school had no library, no science laboratory, no sports fields at all, literally all we had was just classrooms, am part of the few lucky stories though coz i managed to acquire straight A's and pursue a career as a medical doctor. our institutions of higher learning are definitely better than average but our public school system is simply bullocks. not to mention the rampant corruption, even i myself am planning on leaving South africa within the next 5 years. the crime is just too much, i have been mugged roughly 6 times in my lifetime and am only 25.
Yeah our rural schools are really bad but our public schools in urban areas are pretty good. I went to a really good public school
Being a South African, I can say that the country is beautiful, but the government is definitely corrupt.
Why not change the leaders? Go for another political party.
@@wavemaker2077 I don't live in South Africa but I imagine that the strongest rivals are also corrupt.
I hate the a.n.c
@m k the da and action sa are great but the anc freed sa so people just got for them
@@balabanasireti not really, ANC propaganda is just strong.
And they pull the 28-year-old Apartheid card every chance they have.
The closest rival controls a province and it's almost like a different country compared to the rest of the country. The second closest rival is dangerous though almost like a combination of the nazis and the Soviets.
Bro why is everyone clownin on him for making mistakes? He is killing it with the videos. Small mistakes here and there are fine you are doing better than 1000 people news companies.
Cuz it’s the internet. People wanna point out other people’s mistakes to make themselves feel better/smarter
Agreed, he does a great job
As a South African, to hear inequality talked about without bringing up race is brilliant. Good video.
You haven't seen the video carefully, he talks about race, although just for an instant
And also unrealistic. They go hand in hand. White people are more advanced.
As a Kenyan, I was hoping that you guys can go all the way and become developed so that the rest of us would have a model to follow. But you are screwing up and it makes me so mad.
Danny Estrada
What?
You can't separate them- its like taking money out of politics or sport. The two things are inextricably linked
I was gonna say the crime isn't that bad but then it hit me that I live in a gated community with armed security guards that patrol 24/7 💀
Same lol
This really breaks my heart, im a South African and this really breaks my heart and its true😢😢
How do you feel about what's happening now.
@@FARAventz same thing I wanted to know.
He forgot to mention that the SA Government put 500% Import Tax on Grain, therefore affecting the entire price of basic food stuff for the Poor, this is just the beginning
Wait really!?
OOF
100% import tax on electronics and heavens know how much on cars. Life hurts badly...
There is an import tax on wheat to protect local producers against uneconomical prices. It would probably not be needed if other countries didn't subsidize their agricultural production so much.
@@GerritvR1989 The Taxes cause Starvation and shortages
I listen to a lot of politics, economic videos, and try my best to seek out how people view the world and its intricacies. I have to say - your channel is one of the best I've seen for predicting what people think your biases are when presenting this type of data, acknowledging them in a rational way, and doing your best to promote a neutral view. I really appreciate how much effort you put into these videos and I laud you on how well the end product always is!
Finally someone who understands the South African economy ! As a South African, I've been dreading this
but he mentioned nothing of the rampant corruption and mismanagement of funds by the government of south africa
Do a video on the Cuban economy!
Perfect
Cuba is a slave plantation, and the Castro family are their owners. Easy.
It was a country with a weird economy where doctors earned less money than a taxi driver.If I'm not mistaking my last taxi driver that drives me to the airport was a former president of some sort of Cuban Architects association and he said the reason he does it because it was more profitable economically than his job as an architect and somehow the country's population is still depending on food rations from the government.They still used this method somehow in a modern-age of 2020.But local enterprises are becoming rampant in Havana's street with many offers satellite services for others to watch US TV shows.Paid them for a couple of bucks and I could tooned in to watch the last 2 episodes of Netflix's The Defenders
The ANC care about the poor. Every 4 years they give the poor a sandwich and the poor, in turn vote ANC.
I believe it's a bag of Ace pap. The ANC drives by in a convoy of brand new Audis, mercs and BMWs delivering said bag of shittty pap to buy votes.
No. Every 5 years the ANC merely promises them a sandwich, as long as they keep voting of course
The DNC love South Africa.
the sad truth
And how much do you "patriots" care about our country? You people are a disgrace to our country. Shame on you!
When you read the title and think ooo, that sound interesting. Click the video and the TH-camr says 'this is South Africa' but you're from South Africa O_o
The neighborhood segregation thing was so relatable, because I also lived in a gated-luxury neighborhood with armed guards, while I could see shacks on the rising slopes while everything outside wasn't safe (btw it was a third-world country)
Brazil?
Any government is a reflection of its people
@@taissiobrito that seems like a ridiculously flawed statement considering how many governments in the world aren't even democratic.
Where all my South Africans at?
Here. I don't think I like it in this comment section, though
@@bobsquaredme Yeah, I'm seeing apartheid apologetics already, it saddens me when I see all these people, probably Americans, acting as if putting us in a state of tyranny would be an improvement. Not to mention the fact that they act as if they know the correct course of action for a country they probably read 2 shitty articles and watched a deceptive documentary on :(
In poverty, I guess
🇿🇦
Right here boet
Inequality has not changed since 1994, even though the ANC (current ruling party) has been in power for about 26 years. All the state owned enterprises are failing now. How the country is being run was not discussed in the video...
This is a very fair review of South Africa. And it's based on sound economic theory.
In my country of South Africa, all economics is high politicized and that's probably why proper policies and execution can't be devised and acted upon.
Thank you for the knowledge.
As a South African, I can safely say you did great with this video. Very insightful.
I like how you start by building us up with rosy info
Right before that kick in the nuts.
@Colin Martin 😂😂 My thoughts exactly
3:05, that's Tallinn, Estonia, not Finland. But I will forgive you that 80km mistake. :)
3:18: tells us China has a co efficient of 0.47
0.26: imma stop you right there bud
i feel like what you said is completely true, especially considering the recent rioting and looting, as well as considering myself one of the “upper- middle class” i see my peers and friends leaving the country constantly, as well as more and more people moving into gated, restrictive, “safer” environments, what annoys me is the root of these problems is the high corruption rate and misuse of tax money.
"the root of these problems is the high corruption rate and misuse of tax money."
No the root of the problems in South Africa is the racist colonial & apartheid system that provided the basis for a selfish and corrupt ANC elite to grab power.
People are clouded by "ideology" when it comes to voting instead of rational thought to vote for parties that'll develop our country.
Discussing South Africa's issues without mentioning the government is absurd.
4:10 thought this was about to be a skillshare ad
Convergant It would’ve been a good time for one.
tired skillshare ads
"Western countries like North America and Europe"
lol😂😂
I loves those countries
Australia: Am I a joke to you?
😂😂😂
America is turning into a 3rd world country
"China has a gini coefficient of 0.47"
*shows a genie in a bottle*
This video encouraged me to learn more about economics.
As a South African, the key point is the education gap and the failure of government to address this in a progressive manner. Also failure to deliver basic services, and the rampant public sector corruption
0:33 that wave smacked someone way too hard looooool
AJAJAJAJA
Do Soviet Union, please.
It was once an economic superpower.
It was more of a military and ideological superpower.
I would like to see a video on the Soviets. As an american we never hear about what went on behind the iron curtain
The ecomomy of greece.
It still exist???
@@kx4998 Made my day
An empty video, then?
Nobody cares
*The not-economy of greece.
Hey EE. I love the content you are creating. It is very insightful. Have you maybe considered a video about the economy of Nigeria?
Here in Brazil we have something we call 'bolsa familia' that is a direct transfer policy that pulls anyone bellowpoverty line to just above the poverty line. At first we thought it would be a policy just to mask numbers, but it was actually acknowledged as one of the best social policys in the world. It drastically reduces poverty, increases consumption in the economy and is way more effective than any other policy that claims to help the poor. It is inspired in something an nobel wining economist once said about negative income tax
As a South African who has moved to Switzerland, thank you for your video. I like how you explored the different perspectives.
As a South African I don't need to read the comments to know that this will be a very combustible topic
🇿🇦 🇿🇦 🇿🇦 I'm South African! And a regular viewer of your channel. It's always good to see an outside perspective & take stock of what's going right/wrong compared to other nations. Your research & remarks paint a fair picture of Mzansi (as we call it here). We've always had a lot of potential as a nation and we still do, but a lot needs to be done to make the best of our economic opportunities as a nation. Keep the videos coming 👍🏾
Glad to see youve got hope
Like getting rid of the government that corrupt.
nee more BBBBEEEEEE
Okay, here's what they need to do...
- Only allow highly qualified candidates to run for parliament (called a Plato-Democracy).
- Vote for individuals based on education, not parties based on their perspective.
- Have a finite floating currency where money is only created and erased from existence through public housing.
- A separate market for public housing that is protected from property investors.
- A person or family may only own one home in the public housing market (but can buy many in the private market).
- Limited amount of designs for such buildings in order to reduce costs.
- A predetermined amount of plots must be available for purchase in the market at any given time (no shortages of plots).
When you want to buy a house, money is created and pays for your home. While it hasn't been paid back, that money is in circulation. Over the next 30 years, you pay back that money (with 0% interest) and the money is destroyed. So this basically means that if everyone pays back their home at once, there should be no money left (what goes into circulation, must eventually go out). There are always new people who buy homes while others finish paying them off.
A few other things can happen when you do this...
No need for loans or debt. No need for banks. The government can focus on public transport, the education system and health system like they should have been doing.
This is more or less how Suiderland works in as few words as possible.
As a black South African, it's a relief to find someone not blaming it on race. Wealth is accumulating in one area and our own black government is playing a major role in that, our small towns have little to no water & electricity. While suburban areas are experiencing good quality life
*I'm south African and I'm not suprised*
Did you see a single picture of South Africa there?
@@mkdempisi the title says south africa🤓
1:53 "You would be forgiven for thinking that it is actually a pretty average global nation"
Did that just say 40% unemployment?!? I wouldn't exactly call that average.
Lol yeah we have 40% unemployment. One thing this video left out was that we just had an extremely corrupt president (Jacob Zuma) who basically ran the government into bankruptcy and left the country in a near state of anarchy. Luckily he was impeached and we're now rebuilding from the ashes.
@@matthew4581 its techincally 40% unemployemt of people that are looking for work. Far, Far more than that have given up. :/
@@matthew4581 lol there no such thing as impeachment in south africa constitution, president just get fired.
No...official unemployment is close to 30%.
And yeah, pretty surprising now imagine my shock when I saw the same level of unemployment in Greece, Spain, Argentina at ~23%
@Ty Tannick Beats
That is a lot money not getting taxed.
But it should tell us something about the economy too and it's reliance on public transportation.
Public transportation is usually associated with poor people right, so could one say then, that there's a direct correlation between the level of poverty a country has, and the size of its public transportation industry?
AS a South African, you are dead on with 99% of your points. well done very good and acurate video
I have a few plausible reasons why half of South Africa lives in extreme poverty. As a South African myself I have a good insight to this issue so take this seriously and do your own research.
1. The government keeps on making empty promises to those living in poverty and those in poverty keeps on voting for the same party.
2. Since the end of Apartheid, the new government has made no to little effort to build new infrastructure like schools, hospitals and universities/colleges to support the entire nation. Infrastructure under Apartheid was build only for white people and after it ended no real improvement has being made.
3. The government is very corrupt and is basically selling South Africa out to the Chinese. The in competency of the government to make sound and rational policies as well as just doing basic management is what is actually leading to the country's downfall.
Most state companies under Apartheid was well managed and very profitable. Now today they are all failing because of corruption and fraud under the new government who simply can not run a country.
4. Racial tensions are heighten under the government itself. Causing a divide is never good for a country, hence the instability.
5. Education standards are being lowered to the point where you now only need 20% for math to pass. Thus no incentive is provided for students to excell. However, only white children are still performing relatively well because of their culture and their parents telling them to do good so they can go oversees, hence capital and white flight. The majority of job providers are white so this is probably the biggest problem.
6. Literally the food providers of South Africa are being targeted since they are white and own a lot of land. This is going to cause more white flight and a drop in food supply. Therefore killing of the country itself. It also doesn't help that the government does not call this a national emergency and who also states that it is not racially motivated. Except that the majority of farmers are white and that the government want to cease their land.
There are other reasons too but I geus this gives somewhat of insight into the issue at hand.
This is definitely true. What shocked me when going oversees and still feels weird to me is how none of the houses have fences. Here if you own a house you have a 3 or 4 meter high wall and an electric fence with surveillance cameras just to avoid break ins. A lower middle-income person living in a high security fortress probably sounds crazy for everyone too, but that's just what you have to do here to live safely. That or live in a gated community which are called estates here, but they are mainly for upper middle-income citizens which earn at least the equalivant of $50 000 or more a year which is a lot here and you basically live the mansion life with that money and you feel truly rich without really being rich. I only really feel safe walking around in these communities, and I would never walk in the CBD of Johannesburg because of crime.
6:25 FACTS DOESN'T CARE ABOUT YOUR FEELINGS
Money Ball358 Facts is a proper noun in this sentence look at the capitalisation
Wasn't it "your rights end where my feelings begin"?
3:18 "0.47" and shows the same as in Finland.
»My lifestyle, determines my death style!« - Metllica
I live in Durban , a few weeks back we dealt with an insurrection , violent protests and looting . I saw a lot of dead bodies on the road man .
One thing people forget to mention is that, South Africa has a Socialist government that loots state funds, the only reason why South Africa has a functioning economy is because of the private sector (Capitalistic). Majority of the population is dependent on the government while only a few are dependent on the private sector.
Pretty much.
“This is Finland”. Shows Estonia :D Thanks for the compliment. Love the content !
“This is South Africa”
Shows North Africa
“This is South Africa” shows footage of Nairobi
The unbias is strong with this one!
Discussions on inequality in this country have so often leaned toward the opinions of the “dominant economic society” -playing down the history of the country, the effects of generational wealth and magnifying the failings of the democratically elected governments of recent.
Great video!
Great video!
"Why live in a fortress fearing for your life when you can live in a fully developed country?" - Every corrupt politician agrees
@2:06, should have been "...But this all changes when the thieving ANC government is mentioned".
As a South African myself I can tell you the contrast is unreal. I grew up in a middle class white household Cape Town after the end of apartheid and the contrast is unreal. My middle income neighbourhood was just down the road from Nyanga, one of the most impoverished and crime heavy places in the world. The combination of inequality is only being furthered by the anti white, left wing ANC who are driving money out the country through their combination of soft on crime and land redistribution. It’s a sad reality for the country I love
It is sad. I know several south Africans who are in Canada now. Upper middle class women who just couldn't stick around such rising violence.
Perhaps part of the problem is you not realising you were not part of South Africa's middle class but rather part of its elite.
@@felchap1205 hostile takeover and outright racism is no way to move a country forward. The rising black nationalist parties are pretty much following the footsteps of Mugabe and kicking the white farmers and wealth holders out before they can either be taxed or pass on their skills and knowledge. They are digging their own graves.
Felipe Chaparro I used it in the context of a western nation, I would be middle income in the USA, UK etc. But yes I accept that I was born into a rich family for South African standards. We pay tax but if I (which is more than likely due to crime and the increasingly anti white ANC) then that tax and my skills will go elsewhere, only worsening the problem
@@chuckwg so without white people you assume that the country is doomed?
One of the major issues in South Africa is the entrenched high levels of unemployment (around 35%), which make it extremely hard to lift millions out of poverty. To attend to this the State pumps huge amounts of tax revenue into social services such as public schools, hospitals (which are free) as well as an income grant to the unemployed. The problem is that none of these services are of good quality (due to mismanagement and rampant corruption) nor are enough to lift the population out of poverty. Instead, they make millions dependent on the State for their needs. The current ANC government has also failed (intentionally) to make South Africa an attractive place to do business and draw in the foreign capital needed to build businesses and create jobs, which evidently would lower the unemployment rate and lift people out of poverty. South Africa needs the sort of economic policies that have driven the economic boom of South East Asia over the past few decades, but outdated socialist ideologies and croney capitalism remain entrenched in the system by the ANC government, who themselves benefit from the current status quo. The failure of so many State Owned Enterprises and Municipalities, many bankrupt and unable to deliver basic services is a testament to the issue at hand.
OMG, I’m South African and I’m really happy that we got a detailed video about us that isn’t overtly political. Thank you 🙏🏾
You should do a video about what the economics of the CANZUK union would look like. In case ur unaware its a potential trade union between Canada, UK Australia and New Zealand. I think its really interesting and the best option for the UK after Brexit hits.
stockart whiteman CA = Canada and Australia I think.
@stockart whiteman C is for Canada, A for Australia, NZ for New Zealand and UK for United Kingdom :)
Wealth is not distributed, it is created from energy altered into something useful....
Hey, dudes - when you discuss Gini coefficient in Finland, the shot is from Tallinn, Estonia :) Otherwise fascinating content as always.
Thank you for showing a economic perspective on South Africa, the country needs fixing to move forward.
The problem is not a lack of opportunity, it's a lack of knowing how to make use of opportunities. A lot of people here still have fragments of a mindset that was passed on from pre-colonial times: when people lived in tribes and the thinking was left to the chief, you just followed orders. That isn't how capitalism works.
To be clear: it's not about race, it's about culture. Culture can change.
"This is South Africa"
*Shows a picture of Hogwarts
No that is actually Cape Town look at their Table Mountain
3:17 is this a meme or did you actually made the mistake again :D
SA has been ruled by the ANC for the last 30 years (almost). It hasn't experienced civil war or major civil unrest since the end of apartheid. How could it be considered politically unstable other than its poor economy? At that point it becomes an ontological question. I found the analysis in this video very shallow.
I also didn't quite understand why he considered south african as unstable, doesn't really make sense
Kieren Van Der Haar high crime
Probably due to all the protests and shop looting
It's because the lack of coherent policy, political leaders constantly being kicked out due to corruption or other reasons and the continuous rise and fall of political parties that makes it almost impossible to predict past the next few years. SA has been run by the ANC for 26 years and it will likely be run by the ANC for many years to come, but what that actually looks like is going to be near impossible to predict.
One thing that was not said, and I think is worth pointing out, is that South Africa is very low on the economic freedom index. Lack of freedom is a factor in continued poverty.
Richard Harris. YES YES YES! You do know we are slipping down the rankings. It fills me with shame when countries like Rwanda, Uganda and Madagascar surpass us on the indexes.
It's due to too much government interference.
This view is from an objective textbook perspective. More appropriate to petri-dish than a country. And it lacks the perspective of the timeline of what has happened in SA. It is the supposed champions of equality, socialists, who have wrecked the economy. After apartheid ended things were going really very well. Unemployment was falling, the economy growing. SA enjoyed immense support from the international community. Even respect. More and more people included in the economy every year. Then a whole generation of politicians came into power 10 years ago who have been systematically dismantling the economy. The electricity grid and other infrastructure has been sucker punched through neglect and corruption. Anti-growth, and socially divisive policy the order of the day. A program of systematic state capture through crony capitalism among the supposed socialists and external players like the infamous Guptas. The country's external debt rising stratospherically. The public wage bill (having been seen as a way to increase employment) grown to the point where it eats up almost the entire budget along with external debt servicing. The country's sovereign credit rating FUBAR. Even one of our state owned corporations, ESKOM, now has debt equal to about 10% of the country's GDP! And electricity supply is now sporadic to the point where large factories are closing down and foreign businesses leaving the country. Leading to 100s of thousands more jobs being lost every year, and economic growth effectively hard-capped at 1% at best.
It is only then that the wealthy started to really leave. And more importantly, not only the wealthy, but also the skilled - From poor to wealthy skilled people have been leaving over the last decade. Because it became clear the country had in short order transitioned from a growing economy to one which, considering population growth vs sub 1% economic growth, was effectively going backwards.
In the story of the tortoise and the hare. SA was somewhere in-between 10 years ago. Faster than a tortoise, but more steady than a hare. A very good place to be and things were looking very good for the future. Then it was like the politicians suddenly decided that no... SA is in fact the tortoise and they would grab it by it's shell and try and push it faster than the hare. Obviously an infantile course of action. Whatever SA was 10 years ago is now shredded beyond recognition. Of course it only seems that way. Actually what happened was that a crop of corrupt politicians started eating the country alive during the race.
Had the government focused on stable economic growth rather than grand social experiments the communists love so much, and had the state capturers been prevented from gaining power in the first place (cadre deployment being the main enabling mechanism that lead to "state capture"), and had unemployment been steadily decreased (currently at 29% of working age individuals) then SA's GINI number would look more like China's. Probably even better than that. In 2008 our GDP was on a trajectory to grow 2X to 4X over time up to this point. Instead since then the economy has at best segued.
See: The lost decade
EE: However, this all starts to fall apart when we look at this one little figure...
Me, folding laundry on the other side of the room, not looking at the video: is it the GINI coefficient perchance? The one where a score of 0 means everyone has exactly the same and 1 means one person owns absolutely everything, which can be used as a measurement of both wealth and income? just a wild stab in the dark
Awed i have been waiting for this video, many thanks.
Mistake on that Gini coefficient of China shown on screen at 3:15
In 2018, extreme poverty mainly refers to an income below the international poverty line of $1.90 per day (in 2011 prices, equivalent to $2.19 in 2020), set by the World Bank. In October 2017, the World Bank updated the international poverty line, a global absolute minimum, to $1.90 a day.[4] This is the equivalent of $1.00 a day in 1996 US prices, hence the widely used expression "living on less than a dollar a day".[5]
The solutions to fixing SA's problems are pretty simple.
1) Provide quality education for all
2)Provide a business friendly environment.
3)Guarantee property rights.
4)Reduce corruption and incompetence in State departments
Unfortunately , the ruling party is riddled with corruption and incompetence , combined with a communist mindset and a racial inferiority complex.
A change of government is needed . The power of the current government is slowly waning but there is also a possibility that a new government may be worse than the current one.
my heart breaks for my country. we have so much potential
True
Says “Gini coefficient of 0.47”
*shows 0.26*
Almost all of my wealthier family have left already. I'm studying at university right now and I will for sure be of able to leave if I want to. I feel so bad.
I keep asking myself whether my life, my wife and my kids matter more to me than my countrymen.
Don't view these people as your countrymen. They'd probably kill you for you money. Your family is more important.
@@cassuso4902 they are our country men and our ancestors shed some serious blood for this soil. We are all made to suffer together. maybe they would kill me for my money and i would want vengeance but if you have over 40% unemployment then the blame probably falls a little wider.
@@hugomaritz692 Your ancestors would spit on you for giving away a country they bled for, even worse that you consider the people who robbed you of a country and continue to attack you as your "countrymen "
@@hugomaritz692 The suffer together part is hard to follow if you can leave and spare your children. It’s a difficult decision but most are going to choose to leave.
@@hugomaritz692 I understand vengeance but would you sit around and let that happen if you could leave?
Another thing economists miss about South Africa is what I call "false poverty". That is when people can afford to live in a house and pay rates and do everything your typical citizen should, but they don't. They find it cheaper to live in a shack and cry that they are poor. Now you get a shack with dstv dish on the roof and a BMW parked outside. They do have a house in their home province but find it simpler to shack up where they work. They are the first ones to protest for service delivery, but they are also the ones that refuse to pay for services. When they do get a government house built for them, what they do is rent out the house and put up another shack somewhere else and complain again about lack of service delivery. It is all a big scam.
It's funny how you immediately think of cape town as the epitome of SA