30 January, 2012 14:35
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Level of inequality soars in SA

We live in a world of extreme riches and extreme poverty, and South Africa has the highest level of inequality in the world, says the chairperson of the Bench Marks Foundation.

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Speaking at the launch of the Bench Marks Centre for Corporate Social Responsibility in Potchefstroom recently, Bishop Jo Seoka, Chairperson of the watchdog organisation, said that the optimism for obtaining equality depends upon big businesses doing things differently in the new South Africa.

The Bench Marks Centre is as a result of the partnership between Bench Marks Foundation, North West University. It is aimed at contributing towards sustainable development through integrated research that involves communities and is based in the North West province with a focus their and in the Southern African Development Community (SADC).

"What we have seen over the past years in our research on mining companies is shocking. We see a 'free for all' approach to exploit not only labour, but communities and the environment," he said.

"The focus of the Bench Marks Foundation on mining shows that, in almost every case, communities are in fact worse off thanks to the mining activities in the area.

He said that cultural shock, loss of livelihoods and all the attendant health problems communities face, due to emissions coming from mining sites, causes damage to many communities well-being.

"Mines often relocate people into suburbs and do not take their rural lifestyles or subsistence livelihoods into account. They move from a rural existence into the market economy," the bishop said.

Giving an example, Seoka mentioned that the Magobading community in Limpopo, who would not have considered themselves poor previously who made way for mining. In the process, they lost access to grazing land for their cattle, crop production and their way of life.

"The people of Magobading now consider themselves poor, lost, helpless and hopeless," he added. "Contrary to flashy sustainability reports, we have yet to find a community that will tell you they are better off."

He said that people should not be surprised by the pro-democracy uprisings currently sweeping the Middle East and North Africa, as well as the demonstrations in Europe and the occupy Wall Street movement as well as the demonstrations in Europe.

"We need to acknowledge that we live in a world dominated by greed and selfishness; a world where corporations dominate ideas and values," he said. "We could say we live in a corporatised world. This dominance is reflected in government policies; playing by global economic rules, often to the detriment of our economy."

According to the bishop, globalisation dictates that each country should do what it can do best. For South Africa, this means relying on mineral production and exporting this where it realises higher value through various beneficiation strategies elsewhere.

"We need to be talking about what economic sustainability means and how it can be translated into development for people, and how our minerals can develop this country. Not how it only benefits shareholders," he said.

Additionally, during the launch of the research centre, the Bench Marks Foundation released the Rustenburg Community Report 2011; an examination outlining the misery faced by the Rustenburg communities due to the practices of mining companies in the areas.

The study reveals that the promises made by mining businesses to communities in which they operate, pertaining to corporate social responsibility, are half truths.

The Bench Marks Foundation was launched in 2001 by Archbishop Desmond Tutu in response to the churches' call in 1993 to monitor and hold businesses accountable in the new South Africa and in Southern Africa. It is chaired by Bishop Jo Seoka.



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Investor44 Jan 30, 2012

An interesting analysis wouldbe to look at the rising inequality between the poor and the 'tenderprenurs' - take race out of it. By the way those same tenderpreneurs dont want to pay tax - tax that is badly needed to look after the poor and help the poor advance into middle income environments. A shame the multi billion taxi industry does not pay a cent tax and all turn a blind eye. That money could pull thousands out of poverty !
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MsLee Jan 31, 2012

I don't see any mention of race in the commentary above. I feel it's an accurate assessment of the real causes of the growing inequality gap in SA, and one we should all take very seriously.

Three comments made by Bishop Jo Seoka are, in particular, worth highlighting:

1. " ... the optimism for obtaining equality depends upon big businesses doing things differently in the new South Africa."

2. "We need to acknowledge that we live in a world dominated by greed and selfishness; a world where corporations dominate ideas and values," he said. "We could say we live in a corporatised world. This dominance is reflected in government policies; playing by global economic rules, often to the detriment of our economy."

3. "We need to be talking about what economic sustainability means and how it can be translated into development for people ... not how it only benefits shareholders," he said.

In short, what we need is an entirely new socio-economic system - not just at home, but throughout the world. And I would argue that, while the non-payment of tax by tendrepreneurs may be an issue, the very system that is structured to reward shareholders - no matter what the human cost - is what needs to be transformed.
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MoBlaq Jan 31, 2012

We always seem to cast a blind eye to the legacy of apartheid in SA. There will never be an equitable future without the redress of the economic disparities of the past. The Kempton declaration (CODESA) was a political settlement for the stability of the country and not for the future economic well being of the country. This is the challenge that SA faces right now, i.e. moving away from the nolstagia of the past and facing reality. Am sure is the apartheid regime only knew that the only thing the Black liberators were after was to rename the roads, buildings and appear in the Union buildings, without any changes whatsoever to the economic fabrics of the country, they would have granted multi-party independence way back.

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Investor44 Jan 31, 2012

MoBlaq, stand in line behind Malema for your free handout - how much do you want ? R60 Billion that could be used for poverty alleviation is lost every year through government negligence and corruption. The reason why people are still poor is because not a single job has been created due to poor economic policy and people like Malema and yourself just wanting handouts instead of trying to grow the economy.
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MoBlaq Feb 2, 2012

The study results released 01/02/12 partaining to a study of povery done in SA in 2010 shows that 98% of the poor people in the country are Black. With such a monopoly on poverty orchestrated and perpetuated by the apartheid policies, there is need to redress the situation and emancipate the Black people.

As highlighted by some comments in this publication, there is a drive to demonise everyone who speaks out against the current status quo thus in favour f the same apartheid relics.