Introduction
At the present stage of development of the world economy, along with interest in the analysis of general trends, it is still relevant and important to study the economies of individual countries. Of particular interest in this regard are countries of “regional powers” – centers of economic power and geopolitical influence at the regional level. On the African continent, such a center is South Africa, which will be reviewed in this paper.
Current Economic Statistics
Qualitative characteristics of South Africa’s economy remain rather ambiguous throughout the years. According to the MacroTrends website (2022), the average life expectancy in South Africa in 2022 is projected to be 64 years, which is a 0.39% increase from 2021. The growing life expectancy is a good sign that the country has been investing in healthcare and promoting a more healthy lifestyle. In 2018, South Africa’s carbon (CO2) emissions were around 433,250.00 tons, declining steadily during the recent decade (MacroTrends, 2022). This is due to the fact that the country has been implementing environmental policies and turning the state’s attention to non-carbon fuels. MacroTrends (2022) also states that “South Africa’s GNI per capita for 2020 was $5,410, a 10.43% decline from 2019” (p. 1). That is a significant drop which can be attested to the economic shutdown caused by the COVID-19 pandemic; still, South Africa remains within the range of upper-middle-income countries.
Education also has been of increasing interest to South Africa as the country continues to develop as the regional center. According to Trading Economics (2022), “gross secondary school enrollment in South Africa was reported at 103 % in 2019” (p. 1). However, there is no data on average weekly labor hours for children in age 7-14 who can only work and do not visit any educational facilities. This issue is concerning as child labor remains a significant problem, especially in developing countries. The World Bank (2022) reports that in 2014, the top 20% in South Africa shared 68.2% of overall income, while the lowest 20% shared only 2.4% of it. The pre-existing system of apartheid has led to the coexistence in South Africa of both a complex and well-developed diversified “official” economy and an underdeveloped informal “unofficial” economy. The developed economy has good infrastructure and an economic base with great potential, while the “informal” economy shows huge untapped opportunities, especially in terms of the use of human resources.
Why South Africa Is Still Developing
As with apartheid, in today’s South Africa, racial differences between the two economic structures continue to take on an increasingly class character. The economic problems of South Africa are complemented by deep social contradictions that arise from the country’s long history of neglect. This is especially true of poverty and unemployment, which in less prosperous social and ethnic groups is rather high. South Africa still has a long way to healthy development ahead.
South Africa’s Labour Rights and Income Inequality
Labor law in South Africa is governed by the Basic Conditions of Employment of 1997. Mandatory regulation of the right to labor is prescribed in the Constitution of the country; this document serves to promote and defend social justice and labor equality. Overall, labor rights of South Africa strive to meet all the requirements of the International Labor Organization. Despite the progress made in solving racial, ethnic, and socio-economic problems in the 28 years since the end of apartheid, South Africa remains one of the most unequally developed countries in the world. Hundenborn et al. (2018) state that “between 1993 and 2008, government grants played a strong role in decreasing inequality but inequality within labor market income was a much stronger force at increasing levels of inequality” (p. 15). Due to income inequality, poverty has historically been concentrated among the African population.
Important Social Services Provided by the Government
The government in South Africa provides the citizens with plenty of social services that regulate and support the community. The National Government of South Africa website (2022) offers contact to such social institutions as the Departments of Basic and Higher Education, employment and labor regulative services, healthcare councils and providers, and many others. Overall, it can be said that the state gives significant attention and support to social life and strives to offer its people a variety of services.
Conclusion
I chose South Africa for my report due to the unique dualism of its economy. In some areas, South Africa occupies a position comparable to the position of the leading countries of the world, and in certain positions, South Africa is among the world leaders (for example, in the production of synthetic liquid fuels). However, at the same time, the standard of living of most of the country’s African population is close to the African average, which is not bad but not high either.
References
Hundenborn, J., Leibbrandt, M., & Woolard, I. (2018). Drivers of inequality in South Africa. WIDER Working Paper.
MacroTrends. (2022). South Africa population 1950-2022. MacroTrends.
National Government of South Africa. (2022). Social Services. Social Services – National Government of South Africa.
Trading Economics. (2022). South Africa – school enrollment, secondary (% gross) 2022 data 2023 forecast 1989-2019 historical. Trading Economics.
The World Bank. (2022). Income share held by highest and lowest 20% – South Africa. The World Bank.