Predicting the future development of South Africa has become increasingly difficult due to radical changes that have occurred in the last few decades. These changes have left South Africa in a state of social and economical unrest. The largest of these changes was the abolishment of Apartheid. This allowed for black vote, and thus in 1994 a black government. This lead to black empowerment, which was subjugated for hundreds of years. This however created a new series of health, educational and economical challenges the country would need to face.
Cape Town’s mayor Helen Zille states that South Africa has five major challenges to overcome in its future. These are: - Unemployment
- Health Issues (primarily HIV/AIDS rates)
All of these challenges are directly related to South Africa’s economic situation. Over the last century, South Africa was being ever increasingly industrialized, which built a need for cheap labor. Industrialization refers to the change over from rural based employment to factory-based employment with manufacturing industries assuming a greater importance in the economy. This need caused the white government to oppress the black majority into the workforce. Oppression is the negative experiences of persons targeted by the arbitrary and unjust exercise of power in a society. With the abolishment of apartheid, South Africa’s cheap labor force was severely damaged, thus leading to economic unrest.
Although there would be many methods to boost South Africa’s economy, the most probable solution would be to utilize the upcoming Soccer World Cup, which is being held in South Africa in 2010. The future of the South African economy will most likely be improved through foreign investment and the Chief Executive of the World Cup Organizing Committee, Danny Jordaan believes that “A successful event will have a huge impact on tourism, foreign investment and infrastructure development.” The success of the event would demonstrate to the world, that South Africa has the social & economical stability as well as resources to host international affairs. This would allure foreign investment. This would boost South Africa’s global identity as an international power in economy and industry. This type of investment has the potential to boost the economy significantly.
South Africa, being a mineral rich country, has the resources to improve its own economy radically, however due to instability within its society, foreign investment is not acquired to extract/sell these minerals. Through the added stability, which could be gained by the event, many investors will finally see South Africa as a golden opportunity for cooperation in order to gain capitol wealth through mineral extraction.
A fraction of this extreme potential wealth can then be obtained by the South African government through taxes, that can then be used to combat South Africa’s major issues.
An expanding foreign investment in labor and industry, could lead to greater industrialization and social stability, creating many new job opportunities for South Africa’s 24.7% unemployed population. Not only will it increase the number of jobs, but increase average wages and standard of living for South Africa’s poor-working class through the strengthening of work unions. Work Unions would benefit from the increase in the number of black workers in the industrial section of South Africa.
With an increase in the standard of living within South Africa, would come the need for consumerism leading to South Africa’s further progress towards sustainable westernization. Westernization refers to a country adopting the values of western industrial capitalism, in this case consumerism. This would lead to greater trade agreements with other countries. Providing South Africa with not only have a resource based export economy, but as well as a consumer based imports economy.
Through this economic rise...