Friday, July 9, 2010

The economic statistics of South Africa are not encouraging

Despite the economic boost from the building of infrastructure ahead of the World Cup, 171,000 jobs were lost nationwide in South Africa in the first quarter of 2010. The World Cup is projected to just break even, according to Finance Minister Pravin Gordhan, with the benefits to the economy about equal to outlays by the government. The health and education systems are deeply troubled. Poverty and social inequity remain intractable. The annual strike season, when public and private sector unions negotiate wages with government and business, will resume later in July 2010. Protests over the poor delivery of public services may also grow vehement. The legacy of the World Cup will be people demanding and expecting things to happen, because the country has spent all this money on all these things for the World Cup. Wage demands are going to be a lot more strident. Ordinary communities are going to say if the government can build all these stadiums, then they cannot say there's no money to deliver to the people. The unemployed are going to say the same thing.

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