Low Labor Standard Leads South Africans to Export Jobs. South Africa's failure to keep jobs at home and to stimulate new ones is turning into one of the biggest disappointments of the post-apartheid era. By Sharon Lafraniere. [New York Times: NYT HomePage]
What a terribly sad indictment of South Africa's labour policies and economic outlook! This gives a completely new slant to the offshoring debate - a prominent South African exporter finds it more rewarding to open a factory and employ workers in Alabama rather than expand in Babelegi.
So Thabo, maybe "Liberation before Education" was not such a smart strategy in the 70's and 80's? And implementing 1st World labour standards with a 3rd World, uneducated labour force doesn't make sense in a globalized economy, wher wages in Indonesia are a fifth of those in SA?
Apartheid left millions of blacks with little education and no trades. Nearly 60 percent of those who are jobless have never worked, according to the National Labor and Economic Development Institute.
In other developing countries, legions of unskilled workers have kept down labor costs. But South Africa's leaders, vowing not to let their nation become the West's sweatshop, heeded the demands of politically powerful labor unions for new protections and benefits. According to a study conducted in 2000 for the government's finance department, South Africa's wages are five times higher than Indonesia's, even though its workers are only twice as productive.
On the other hand, The Economist had a relatively positive article on South Africa's motor industry recently, and another one noting the boom in the film industry, linking it to Charlize Theron's Oscar success.
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