This glib, uninformed and obsequious praise of SA’s cartel-like companies and their CEOs hides the fact that the concentrated, uncompetitive and inefficient economy is harming growth, development and job creation. Linda Ensor’s article (Lack of competition in SA enables cartel conduct, October 6) quoted Competition Commission acting deputy commissioner Hardin Ratshisusu as saying, "Cartels in SA are particularly damaging. They impose price premiums much higher than the world average of about 10%, sometimes reaching 100%." In July the IMF’s David Lipton warned that it was not only government policy that was harming growth. High barriers to entry, protected industries and labour, and protective subsidies harm consumers and competition. There is widespread anticompetitive behaviour. South African companies have high profit margins, often 50% higher than in other countries. It is in this unstable environment that people like Basson earn their stupendous salaries, and their silly remuner...
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