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certification of product safety. The recent foot- • Product markets
and-mouth disease debacle clearly showed that The free-market system in South Africa is vibrant
national and provincial government departments and growing. The formalisation of informal
are unable to manage animal health issues. Various markets is a tremendous success story with
industries are providing their own quality control supermarket chains opening stores in the growing
and expert certification schemes successfully. peri-urban areas and underdeveloped cities.
There are a few examples where joint action Population growth and the increasing average
between government and industry resulted in per capita disposable income as more people
industry growth. The cotton initiative of Cotton enter the formal economy are driving retail
SA and the Department of Trade and Industry demand. The growth of consumer demand will
working together in the Sustainable Cotton help to grow the economy.
Cluster, is a good example. Other agricultural The deterioration during the past 24 years
and agro-processing industries will do well to because of neglect of infrastructure seriously
follow Cotton SA’s example. impacts productivity. The current Eskom debacle
and the crisis at Onderstepoort Biological Products
• Labour markets are good examples. The only real solution, while
Officially there are 6,6 million unemployed probably not politically acceptable, is to privatise
and 2,75 million so-called discouraged people these organisations and change regulations
that are no longer seeking jobs. The official to enable the private sector to take over these
unemployment rate is at 29%, the highest level functions.
since 2008. More than half the young people
below 24 years are unemployed. Minimum • Governance
wages and extreme overregulation of the labour Good governance is a prerequisite for
market are the main reasons why industry does economic growth. We have an independent
not employ more people. Labour unrest also judiciary system with judges who have amply
plays a role. The unnecessary labour unrest in the illustrated their independence in the past.
Western Cape a few years ago accelerated the Unfortunately, corruption is a huge problem.
rate of mechanisation in the fruit industry. While The new president has appointed several
there is an oversupply of unskilled labour, the commissions to investigate corruption in various
education system does not supply the necessary entities. To date, no real action has been taken
skilled workers. We will have to deregulate the to bring the guilty parties to book, but at least
labour market and revamp the education system. there is some action against corruption, which
It is counterproductive to raise the matric pass is encouraging.
rate by lowering standards.

SUMMARY
Despite widespread corruption, a deteriorating infrastructure
and inability of government to provide services, there are
still positive aspects. We have a growing population, well-
functioning financial system, free press, independent judiciary,
excellent manufacturing and retail infrastructure, and a
growing agricultural industry with access to new technologies,
all guaranteed by a model constitution.
If we want to grow the economy, government will have to
take some unpopular decisions and privatise ailing state-owned
entities. The private sector is committed to transformation
and economic growth, but its best efforts are hindered by
unnecessary regulations. Government will have to change
these regulations to accommodate private sector initiatives.

14 | Katoen SA \\ Cotton SA