“The more wealth you
have, the bigger your duty to help those who do not have wealth. Given more, more is expected of you” ~ Manoj
Bhargava, Billionaire Business Mogul
PIKETTY IN SA
There has been much debate and opinion expressed by
academics, financial journalists and economists, comment from South Africa’s
CEOs and those who are in the top 10% income bracket in South Africa about the address
on ‘Equality in South Africa’ by French Professor Thomas Piketty at the 13th
Nelson Mandela lecture.
One does not need to be affiliated to any political or
ideological party left or right wing or of any income bracket to view the base facts
objectively and arrive at the decision that civil society and South African
business needs to address inequality in South Africa.
How this is done will be based on a willingness by all South Africans of all income levels to arrive at innovative and new ways over and above what some exemplary individuals and corporate companies have already initiated and achieved in business and innovation hubs to date. However, there needs to be an urgency by all, rich and poor to contribute in whatever way they can to rectify the status quo.
THE FACTS AS THEY STAND
As stated by Piketty “extreme inequality is not good for
development and growth and if not addressed through peaceful means can be a
source of violence.” Piketty touched on
the similarities between population numbers in France and South Africa. France has a population of 60 million people
and South Africa has a population of 55 million people. An approximate break
down of 5 million white people and 50 million black and coloured people.
INCOME LEVELS IN SOUTH AFRICA
Piketty has reported that South Africa has the HIGHEST
inequality rate in the world with 10% of people earning 60% to 65% of all
income. Piketty blames the status quo on
apartheid.
For some reason there are many South African’s who are in
denial about the reason why some South Africans have progressed to financial
stability while others have not. There
is always the lament “I am sick and tired of apartheid being blamed for this,
that and the next thing.”
IT IS TIME TO FACE THE FACTS
Two facts: South Africa having the highest
inequality rate in the world and the population break down points to one
conclusive answer – yes, apartheid has definitely created this imbalance and
twenty years is unfortunately, not a period of time in which a correction to
equality can be made. In addition to
which there has been a severe strain on South Africa’s infrastructure which has
required additional spend – the population has grown by 25 million over the
past thirty years.
COMPARISON OF TWO SOUTH AFRICAN MEN
WHO TURN 50 YEARS OLD THIS YEAR – BORN IN 1965
Let’s look at an example of a white man who had good quality schooling, attended a South African University. Yes, this man was no doubt a hard worker and applied his talent to opening a business. Today he runs a successful software business in Johannesburg. How does this man spend his income apart from investing his money and supporting a family? He travels extensively during the year on week and weekend get-aways to game reserves and to the coast and golfs annually in the Mediterranean, he has bought a Ferrari vehicle and for his fiftieth birthday treated 100 people to a dinner on the Rovos Rail Blue Train. In a way, his income does fund tourism in South Africa, but was it really necessary for him to purchase a Ferrari vehicle or to golf annually in the Mediterranean?
Now, let’s look at an example of a black man who did not have
good quality schooling, and did not have the opportunity to attend a South
African University. This individual
might be working in a retail environment as a shelf packer, driver or working
in a manufacturing environment. He is probably
a hard worker and has many talents. How
does he spend his income? He supports
his family. A family who may well also
never have the opportunity to go to University.
This man and his family and generations to come are likely to never have
financial security during their lifetime.
Without opportunity and without education the poor get
poorer and yes the rich get richer. The
top 10% income earners all know about compound interest.
HOW CAN ADDITIONAL RANDS AND CENTS BE
SPENT TO STIMULATE THE SOUTH AFRICAN ECONOMY?
The wealthiest of South Africa can contribute to Venture
Capital Schemes as shareholders to spearhead and stimulate the South African
economy.
BILLIONS IN CHANGE
Manoj Bhargava, billionaire business mogul states:
“Talk doesn’t help someone out of poverty! Make a difference in
other people’s lives. The most
fundamental change you can make is inventing the right things, something
useful. The more wealth you have, the
bigger your duty to help those who do not have wealth. Given more, more is expected of you.”
Manoj Bhargava’s focus is on water and energy. Energy is the great equaliser and water is
fundamental to life!
GREEN POWER IN SOUTH AFRICA
The government and the private sector have set up the South
African Renewable Energy Technology Centre at the Cape Peninsula University of
Technology to train technicians to service renewable energy projects. There seems to be no limit to the scope of
SA’s green economy. A solar energy technology road map estimated that by 2050,
70GW of power could be generated from solar photovoltaic and concentrated solar
power sources. Up to 247MW of small-scale hydro power could be developed
in rural Eastern Cape, Free State, KwaZulu-Natal and Mpumalanga.Work has also begun on a national biomass action plan. Only 200 biogas operations have been registered in SA since 2011, but there are an estimated 12-million in India, and 17-million in China. The Southern African Biogas Industry Association estimates that biogas could contribute 2.5GW generation capacity to SA, using waste water, food waste, manure, agricultural residues and commercial processes including abattoirs, breweries and cheese factories.
DO WE AS SOUTH AFRICANS HAVE A RIGHT
TO LOOK AT INEQUALITY AND TO NIT PICK ABOUT WHAT PEOPLE SPEND THEIR
MONEY ON OR WHERE THEIR INVESTMENTS ARE PLACED?
Probably not, however we all live together in this beautiful
country that is blessed with so much natural beauty and splendour, the sun that
warms our spirits and souls. The widest smiles
of people with the happiest dispositions who have little raise South Africa’s
professional class children who have much.
How long can paradise last –
not forever – it all boils down to common sense and rands and cents!Every South African at every income level can contribute with innovative ideas and schemes to build a better and brighter South Africa. The more wealth you have, the bigger your duty to help those who do not have wealth. Given more, more is expected of you to invest in the people of South Africa, to ensure a sustainable and peaceful future.
One hundred and thirty years after gold was discovered on
the Witwatersrand, the sun is setting on bullion mining with the possibility of
Anglogold facing Top 40 eviction on the JSE.
Times are a changing.
Do you really want to live
the high life of the rich and famous in a country that has the highest inequality
in the world?
Wouldn’t you rather have South Africa be known for being the
most progressively, innovative country in the world and know that you were a
shareholder and contributor to the country’s success? 
