Saturday, March 21, 2015

Country Analysis -- Important Events Happened in Recent Years

Black Economic Empowerment
After the demise apartheid the South African Government proposed Black Economic Empowerment. Its purpose is to assist the blacks who had been treated unfairly during the apartheid and give them economic opportunities such as employment, vocational trainings and even early procurement. It is estimated to last till 2014 when more than at least 30% of the enterprises are owned by blacks. More rights are distributed to blacks for example, mining rights are given to blacks equally.

As though more blacks are becoming middle class under black economic empowerment, the problem of huge income disparity becomes much more serious as well. Higher unemployment is observed. Therefore, it is still a policy facing massive criticisms.

Financial Tsunami
In late 2000s, the financial downturn triggered by the USA’s subprime mortgage crisis is commented to be the most severe crisis since the second world war by the international monetary fund. because of the interdependency of the economies around the globe, all countries are affected and most entered the tough phase in the business cycle. However, unlike many other developing countries, South Africa did struggle through the crisis and gradually recovered because of the growth in both private and public consumption

Land Redistribution
The South African government proposed land redistribution aiming at transferring 30% of the 82% million hectares owned by white farms to black farmers. This is proposed by Gugile Nkwinti, Minister of rural development and land reform. 6.7 million hectares had been transferred by early 2012.
This policy faced severe criticism as well. Farmers complained the pace of the redistribution to be too slow while at the same time the policy is actually carrying racist treatment to a certain extent.


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