1. INDIAN INSTITUTE OF
PLANTATION MANAGEMENT
BOTTOM OF PYRAMID IN
SOUTH AFRICA
PRESENTED BY
BIDHU,ANUDEEP,AMIT,CYRIAC,YOGESH
GROUP 4
2. FIRST, THE GOOD NEWS
The South African economy is now the 23rd largest in the
world, compared to 35th in 2002. It's growing at a rate of
over 3% a year.
Inflation was running at 14% in 1994. It's now below 5%
and falling.
Interest rates dropped from 16% to under 9% in the first
ten years of the ANC Government. This is good news for
businesses wanting to borrow and could mean more
jobs are created.
The budget deficit, which was 8% in 1997, fell to 1.5% in
2004. South Africa is balancing its books.
25% of goods produced in South Africa are for export, up
from 10% in 1994.
Black South Africans are spending ten times as much on
cars as they were in 1994
3. THE NOT SO-GOOD NEWS
•The economy is growing but not fast enough. It needs to grow by
6% a year if it's to make any dent in the official unemployment rate
of 31%.
•A lack of skills, particularly in IT, is holding back job creation.
•South Africa seems to have “jobless economic growth”. Companies
are benefiting from new technology and foreign investment but they
are not creating jobs for the vast army of unemployed.
•48% of the population is living below the poverty line, earning less
than 530 rand (£53) a month.
•GEAR has kept wages down among low paid workers, particularly
in the public sector. This has seriously damaged relations between
the ANC Government and the trade unions.
•Since 1994, Company Directors' salaries have risen by 29% a year,
workers salaries have risen by just 6%.
•In the ten years since the ANC took power, 2 million jobs have been
lost( African National Congress)
4. From BRIC to BRICS
BRIC, to be known as BRICS now that South
Africa has become a member, is a powerful
bloc of emerging economies which,
according to the International Monetary
Fund, will account for as much as 61% of
global growth in three years' time. South
Africa brought into BRICS "not only South
Africa but a larger African market of a billion
people,"
5. “the role of
emerging economies in advancing the
restructuring of
the global political, economic and
financial architecture
into one that is more equitable,
balanced and rests on
the important pillar of multilateralism”
SOUTH AFRICA
Millions of poor South Africans want better wages, more job
protection, pensions and higher taxes to improve public services.
Many are getting restless, resulting in public sector strikes and
growing land occupations. South Africa has been compared to a
double-decker bus travelling with the rich on top and the poor at the
bottom; however, the bus has no stair
6. Analysis of the Brics members
Profile of Brics countries
Brazil Russia India China South
Africa
Area (km) 8 514 877 17 098 242 3 287 263 9 596 961 1 219 090
Populatio 203 429 138 739 1 189 172 1 336 718 49 004 031
n 773 892 906 015
Popu 1.134% -0.47% 1.344% 0.493% 1.1%
growth
rate
UN HDI -I 73 65 119 89 110
Unemploy 7% 7.6% 10.8% 4.3% 24%
ment rate
No of 75.98- 40.85- 61.85- 389-million 4.42-
internet million million million million
users
No of 173.86- 230.5- 670-million 747-million 46.44-
7. The Brics’ global significance
REST OFOF WORLD
REST BRICSBRICS
Population 56.95%
WORLD 43.05%
GDP(PPP) 74.32% 26.68%
Export volume 84.82% 15.17%
Here we can say that the importance of the Brics bloc in
the global context. Brics countries account for close
to half of the world’s population, a sizeable proportion
of global GDP and hold a majority of the world’s foreign
capital. Brics countries also command 15.17% of the
global export volume, which is indicative of the growing
economic and political importance of the bloc. China
itself makes up 12% of the world’s export volume.
8. BATTOM OF PYRAMID PROBLEMS IN
SOUTH AFRICA
Recession, tariff barriers, poor infrastructure
Racial Problem, HIV/ AIDS ,Crime Problem
weak supply chains, economies often reliant on
natural resources
Government performance/service delivery
Electricity concerns, poverty ,unemployment
Militant unions and more social unrest
Foreign nerves
Water contamination and flooding
The year of measurement
Supply chain continuity
The cloud computing silver bullet
Global climate change
9. What can bring change(GEAR)
Ensuring consistency in government’s rural
development strategy whereby access to economic
activities is expanded in order to reduce poverty
Investing in human right and social justice to improve
living conditions
Developing partnerships with civil society
organisations
Addressing gender inequalities
Promoting well being and healthy life styles
Investing in infrastructure and human capital, building
skills and knowledge beyond agriculture.
Making state institutions responsive to poor people
Monitoring and evaluating key indicators of socio-
economic activity
10. The way forward
South Africa’s role in the newly formed Brics bloc is
untried and untested. The dynamic that the African
country will play within the grouping is yet to evolve. It
is, however, widely speculated that the country has been
included owing to its “gateway” status to the African
continent, and also because of its political stature in the
international community.
A key test of the Brics bloc is whether it will be able
to promote intra-trade between the Brics countries. For
South Africa this means that the country will have to
tackle a number of structural issues regarding its internal
trade capacity to become more competitive in global
market.
11. CONCLUSION
South Africa, therefore, needs to bring new
policies, invest in its own, and the regional
infrastructure, as well as reduce intra-African
trade barriers for the country to provide any
meaningful contribution to Brics and enhance
its competitiveness on the international stage
by providing entitlement ,developing
capabilities and working on action plan to
prove that it deserves its place in BRICS.
