LETTER: SA’s economy will be in the hands of white people for many more decades

Jesse Naidoo’s comments on growth and poverty cannot go unchallenged (“Economic growth is the antipoverty strategy that actually works,” January 10). The article is simplistic and unrealistic. Analysis of the effect of growth on poverty in US, Japan and SA illustrates my point.

The technology revolution in Silicon Valley has spawned not only multimillionaires but dollar billionaires. Yet there has also been a significant rise in the number of homeless people in San Francisco, the heart of the tech revolution.

An African-American rarely occupies the position of CEO of a major US company. Elon Musk recently took over Twitter and promptly rendered skilled people unemployed in the name of economic growth.

In Japan, workers are incentivised to work for the same company for life by being offered shares. Many companies also hire employees along family lines. Japanese companies carry out research projects together but launch the products separately under individual companies. The Japanese economic system attempts to be beneficial to all classes in society.

In SA, the legacy of apartheid means the economy will be in the hands of white people for many more decades. Most black children are served by a dysfunctional education system. The majority of the black population will not be able to participate meaningfully in the economy due to poor education and the resultant lack of skills.

Blacks who have managed to secure a good education will continue to struggle to advance their careers as professionals due to resistance by corporate SA to transformation from the pre-1994 era.

Economic growth may succeed in alleviating poverty in a country such as Japan, and less so in the US due to prevailing racial issues, but not in SA. Markets can generate huge economic growth but cannot distribute wealth (prosperity).

Jeffrey Mothuloe
Via email

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