South Africa: Country Report
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1 South Africa: Country Report Erika, Helena, Jo, Josephilda & Rasigan Presentation to GLOBELICS Workshop on Learning, Innovation, & Competencebuilding Systems in Brazil, Russia, India, China & South Africa (BRICS) Aalborg, 13 th February 2006
2 Outline South Africa Geography Environmental History Demography Political Economy BRICS Study onsdag den 1 mars 2006 South Africa Country Report Slide 2
3 SA Geography Surface Area: 1,219 million km 2 Coastline: km Highest Peak: m (Drakensberg) Average Annual Rainfall: 450 mm 8 major Terrestrial Biomes onsdag den 1 mars 2006 South Africa Country Report Slide 3
4 Geography Small Country Mainly Arid Mineral-Resource Endowed onsdag den 1 mars 2006 South Africa Country Report Slide 4
5 SA Environment 3 rd highest level of Bio Diversity unique marine species vascular plant species 80% unique 5,8% of world s total Mammal Species 8% of world s Bird Species 4,6% of global diversity of Reptile Species 16% of total number of Marine Fish Species 5,5% of world s classified insect species Ranked 5 th in Africa & 24 th in World Source: Department of Environment & Tourism onsdag den 1 mars 2006 South Africa Country Report Slide 5
6 Environmental Global Obligations towards Sustainability Inter-generational Custodianship Role of Conservation in Development onsdag den 1 mars 2006 South Africa Country Report Slide 6
7 SA Long History Cradle of Humanity Earliest Hominoid Remains Earliest Hominoid Artifacts Rediscovering Pre-colonial History 1652 Conquest & Colonisation Dutch British Rule 4 colonies + 3 protectorates Early 20 th Century Minerals rediscovered Union of South Africa Segregation 1948 Apartheid Consolidated, Passive Resistance 1960 s Republic of South Africa Declared, Armed Struggle 1970 s Foreign Aggression, Trade Unions resurface 1980 s Winning Hearts and Minds Major Economic Crisis Global Sanctions Academic Boycott State of Emergency Negotiations Begin onsdag den 1 mars 2006 South Africa Country Report Slide 7
8 SA Short History Restrictions on Political Organisations lifted [ANC, SACP, PAC, BCMA] Nelson Mandela and other political prisoners released Operation Vulindlela surfaces & Armed Struggle Ceases End of Sanctions & accession to WTO +/- 150 National Forums negotiate Post-Apartheid Scenarios Convention for a Democratic South Africa begins transfer of State Power Attempted Coup (Black Collaborators + White Right Wing) Labour-led social accord becomes Reconstruction & Development Programme (RDP) st democratic elections for a united, non-racial & non-sexist South Africa RDP White Paper & Ministry South African Science &Technology Policy Transition Project Discussion Document, Green Paper to White Paper Growth, Employment & Redistribution Strategy for Macroeconomic Stability (SAP?) S&T Foresight, National Audit, Institutional & System-wide Reviews onsdag den 1 mars 2006 South Africa Country Report Slide 8
9 SA Recent History 2000 Present Micro Economic Reform (Vision 2014) Integrated Manufacturing Strategy National Research & Development Strategy National Biotechnology Strategy Information & Communications Technology Roadmap Advanced Manufacturing Technology Strategy Innovation Fund + Astronomy, Palaeontology & Bio Diversity Research Employment Equity & transformation Decade of Freedom Reviews Under spending major issue Capacity constraints Millennium Development Goals Shifting resources [GEAR Dividend] to Local Government Major Skills Deficits New Partnership for Africa s Development African Union 2010 Football World Cup? State-owned Enterprise-led Infrastructure Investments Accelerated and Shared Growth Initiative onsdag den 1 mars 2006 South Africa Country Report Slide 9
10 History Reproduction of de-racialised Capitalism Legacies immense separate development & cheap labour Siege economy Concentration & Oligopolies Commercialisation impacts on Public/ Private Goods Structural Constraints Not just cyclical imperfections onsdag den 1 mars 2006 South Africa Country Report Slide 10
11 Political Landscape Constitution & Bill of Rights Legal System Reform? Executive Cabinet Forum of SA Directors General Cabinet Clusters Legislature Proportional Representation (List System) 3 tiers: Local, Provincial & National Parliaments 37 National Departments 9 Provinces 6 metropolitan municipalities (2006: candidates) 231 local municipalities 47 district municipalities onsdag den 1 mars 2006 South Africa Country Report Slide 11
12 Political Complex system Resulting from a negotiated compromise Developmental State stance Scale & Scope limiting Public Participation uneven Africa-wide Responsibilities African Peer Review Mechanism onsdag den 1 mars 2006 South Africa Country Report Slide 12
13 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 SA Population Growth Rates ( ) 1.6% Average annual growth rate 1.2% African Coloured Asian 20,000,000 15,000,000 10,000,000 5,000, % 1.5% 0.9% White Total Source: Statistics SA Population Census onsdag den 1 mars 2006 South Africa Country Report Slide 13
14 Male Female Male Female 51.9% 48.1% 50.8% 49.2% 0.8% 1.6% Source: Statistics SA Population Census onsdag den 1 mars 2006 South Africa Country Report Slide 14
15 Demography Health Welfare Underdevelopment Marginalisation Nutrition & Diseases: HIV AIDS impacts onsdag den 1 mars 2006 South Africa Country Report Slide 15
16 Aggregate composition of the GDP ( ) % Agriculture and mining 10.1% Agriculture and mining 19.0% Manufacturing 19.1% Manufacturing 70.2% Services and construction 70.9% Services and construction Source: South Africa Reserve Bank onsdag den 1 mars 2006 South Africa Country Report Slide 16
17 Timeline for South African GDP by sector quarterly ( ) Agriculture and mining Services and construction Manufacturing Total GDP Million Rand, constant prices , , , , ,000 50, % 0.3% 0 Average annual growth rate= 2.8% 3.3 % growth rate = 4.4% Years (quarterly) Source: South Africa Reserve Bank onsdag den 1 mars 2006 South Africa Country Report Slide 17
18 Gross Per Capita Income ( ) 35,000 30,000 Average annual growth rate= 6% 25,000 Rands 20,000 15,000 10,000 5, Source: South Africa Reserve Bank onsdag den 1 mars 2006 South Africa Country Report Slide 18
19 Sales by manufacturing sector (million Rands) Annual growth rate ( ) Total Manufacturing 542, , % Food and beverages 97, , % Textiles, clothing, leather and footwear 32,169 39, % Wood and wood products, paper, publishing 52,429 71, % Petroleum, chemical products, rubber 110, , % Glass and non-metallic mineral products 14,143 22, % Basic iron and steel, non-ferrous metals 107, , % Electrical machinery 15,276 19, % Radio, television and communication apparatus 8,593 10, % Motor vehicles, parts and accessories 76, , % Furniture 6,453 9, % Other manufacturing groups 22,171 26, % Source: South Africa Reserve Bank onsdag den 1 mars 2006 South Africa Country Report Slide 19
20 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, % of GDP Manufacturing, value added (current US$) Average annual growth rate 10.70% 18.9% of GDP Source: South Africa Reserve Bank onsdag den 1 mars 2006 South Africa Country Report Slide 20
21 Millions ($US) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Timeline for total exports and imports ( ) Total Imports Total Exports Source: IMF Trade data onsdag den 1 mars 2006 South Africa Country Report Slide 21
22 Developing countries 29.1% 30.8% To Africa 13.1% 12.8% To Asia 9.8% 12.2% Destination of South African Exports Industrialized countries To EU 44.4% 28.6% 56.5% 31.8% To USA 7.9% 10.2% Other (transition) 26.6% 12.7% Source: IMF Trade data onsdag den 1 mars 2006 South Africa Country Report Slide 22
23 Developing countries 33.6% 40.5% From Africa 2.1% 4.2% From Asia 14.1% 18.5% Industrialized countries From EU 66.1% 44.6% 59.1% 44.9% Origin of South African Imports From USA 11.9% 8.5% Source: IMF Trade data onsdag den 1 mars 2006 South Africa Country Report Slide 23
24 Economy Military-Energy Complex From 8 million to 45 million Capital-intensive investments Low savings Low Labour absorbing capacity Skills mismatch Revitalizing Artisan Training by State Owned Enterprises Many Policies & Strategies Delivery Capacity onsdag den 1 mars 2006 South Africa Country Report Slide 24
25 Source: R&D Surveys 2001/02 and 2003/04, Human Science Research Council onsdag den 1 mars 2006 South Africa Country Report Slide 25
26 Thematic Issues Inter-BRICS Trade Monitoring Linked to exporting & importing Firm-level Surveys Intra-BRICS Issues Policy Evolution: Micro Macro Economy via Meso (NSI) Role of Development Financing Institutes & Instruments Dualisms BRICS externalities Regional Contexts & Integration Responses of More Developed Countries Multilateral Agencies onsdag den 1 mars 2006 South Africa Country Report Slide 26
27 Sector Choices + Automotive Health Services Information & Communication Technologies Film & Creative Industries Environmental Services Public Infrastructure onsdag den 1 mars 2006 South Africa Country Report Slide 27
28 Process Suggestions Global coordination of BRICS Study (GLOBELICS) Website, National Research Team Open invitation Collate existing material Generate 1 st Draft 2 nd Globelics 2006 India Gap Analysis (integrate with Catch-up & UniDev) Draft Comparative Report National Research Team (2007) Deepen and widen study (filling-in the gaps) 2 nd Draft National Reports Final Globelics Workshop Synthesise final BRICS Report onsdag den 1 mars 2006 South Africa Country Report Slide 28
29 Thank You SA Research Partners (Confirmed) Department of Science & Technology Development Bank of Southern Africa Human Sciences Research Council National Advisory Council on Innovation Tshwane University of Technology (IERI) SA Research Partners (Possible) University of Pretoria University of Stellenbosch University of Johannesburg University of Cape Town University of KwaZulu Natal onsdag den 1 mars 2006 South Africa Country Report Slide 29
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