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NO.2381-South Africa self-abolished martial arts
Author: Kilimanjaro's Snow
Drafting: Chestnut / Proofreading: Gu Hanying / Editor: Moth
South Africa was once the only industrial country in Africa, and its industrial strength is not only unique in the African continent, but even the entire southern hemisphere. However, since the 90s of the 20th century, South Africa's industrialization level has been declining, and industrial recession has brought about economic regression.
The degree of development of the African region is very intuitive under the night sky
South Africa is one of the few shining lights on the continent
(Photo: NASA) ▼
In 1994, South Africa's gross national product was R422,192 million, the highest among African countries, accounting for about one-third of the entire gross national product of African countries, and more than the total industrial output of sub-Saharan black African countries.
But by 2022, South Africa's total GDP will be $411.48 billion, behind Nigeria and Egypt, ranking third in Africa, with a per capita GDP of $6,739, also behind African countries such as Gabon and Botswana.
Needless to say, South Africa was the third oldest once in 2020▼
How strong was the South African economy before 1994?
Since the middle of the 20th century, South Africa has not only been the African continent, but perhaps even the most industrialized country in the entire southern hemisphere, and industry once accounted for more than 36% of South Africa's GDP.
After more than half a century of construction, South Africa has formed four major industrial areas: the Western Cape, Port Elizabeth-Ettenhach, Durban-Pinetown and the South Transvaal.
Where the four major industrial zones are located▼
How strong is South African industry? It has developed nuclear weapons with the help of Israel and attempted to develop intercontinental missiles, and South Africa remains the only country on the continent with a nuclear power plant.
Although there are nuclear power plants, they have long been plagued by power shortages
(Koeberg Nuclear Power Plant, Photo: shutterstock)
South Africa has a strong performance in heavy chemical industries such as automobile manufacturing, oil refining, mining equipment, machinery manufacturing and the arms industry, producing main battle tanks, self-propelled guns, and developing sophisticated weapons such as helicopter gunships and even fighter jets; It has also established a complete industrial system in high-tech industries such as electronics, computers and atomic energy.
The developed industry is also reflected in the advanced scientific and technological level of South Africa, where South African doctors have completed the world's first human heart transplant.
In 1967, the world's first human heart transplant was successful
This is an important moment in the history of medicine▼
It is worth mentioning that the rise of South African industry is inseparable from its developed system of state-owned enterprises. After the 20s of the 20th century, the South African authorities directly invested in key industrial enterprises to promote the development of manufacturing, such as the government invested 7 million rand in 1928 to establish the "South African Steel Company" in Pretoria.
South African Steel Corporation's plant (circa 1965)▼
Although South African industry was strong during this period, it also faced huge problems.
First, it is too centralized and lacks strategic depth. South African industry is mainly concentrated in the aforementioned four regions, which account for 1/3 of the country's total population, 80% of the country's urban population, 73% of the country's factories, and 76% of the country's industrial workers.
This situation has also contributed to the uneven development of the South African region
A corner of Cape Town in the early 30s of the 20th century▼
Second, the policy of racial discrimination and segregation is not only morally problematic, but also limits the further development of the South African economy. In the early stages of industrialization, this policy was actually a disguised primitive accumulation of capital with South African characteristics, turning large numbers of blacks into cheap labor for the expansion of industrial reproduction.
However, when industrialization develops to a certain height, blacks, who make up the vast majority of the population, live in poverty for a long time, which will inevitably restrict the domestic consumer goods market in South Africa. South Africa was also isolated by the international community because of the apartheid policy, and some international capital was withdrawn, which affected South Africa's economic development.
Match stands in South Africa in the late 60s of the 20th century
A thin rope separates an insurmountable racial divide
(图:A photo)▼
Deindustrialization process
When the ANC came to power in 1994 and abolished racial discrimination and segregation, South Africa's economy, especially industry, experienced a recession. There are many opinions on the reasons for the decline in South Africa's development level, some say that it is because of the "Virgin" policy of Mandela and the "ANC", and others say that Western countries "set a trap" for South Africa.
Mandela during the South African election in 1994
(Photo: artsandculture.google)
But the fact is that since the 80s of the 20th century, the South African economy has entered a downward path, and the later ruling "ANC" only continued this process to some extent.
The first is policy mistakes. Although it would be unfair to blame Mandela and the ANC for South Africa's industrial decline, a series of policies of the ANC government did contribute to South Africa's deindustrialization.
In short, South Africa's industrial decline is a long-term process
This trend is the result of a combination of factors
(Photo: Shutterstock)
For example, the ANC government has instituted the Black Economic Empowerment (BEE) policy, which aims to increase the "participation" of blacks, people of color and Indians in the economy. The Black Economic Empowerment Act gave blacks a lot of benefits, but this law did not really benefit the majority of blacks, but gave some upper-class blacks practical benefits, and about 10%-20% of black South Africans became richer because of the wealth redistribution plan implemented by the Black Economic Empowerment Act.
Merleszt Mbeki, a South African political economist and brother of former President Thabo Mbeki, pointed out that in the process of transformation, South Africa formed an "interest group" in which the mineral and energy oligarchy colluded with the upper echelons of the "ANC", which is the fundamental reason why South African industry continued to decline after the transformation.
Through the collusion under the table, the benefits are constantly transmitted to the oligarchs
(South African coal mines, photo: Shutterstock)
In the process of transformation, it was mainly white manufacturing enterprises that were damaged, and the mineral and energy oligarchy was saved from damage through "communication" with the upper echelons of the ANC, and even grew.
In addition, South Africa has also fallen into a "resource curse" to some extent. Although the mining contribution to the country's GDP fell from 21% in 1970 to 6% in 2011, it still accounts for nearly 60% of exports and is South Africa's most important export, from which the mineral energy oligarchy and black political elites make a lot of money.
If you look at the composition of the export, you can see how fragrant this bowl of "mineral rice" is▼
South Africa's industrial decline is also due to government failures such as aging infrastructure. South Africa's power system and transportation system are aging and not maintained, and gradually unable to meet the needs of industrial development, and industry often affects production due to lack of electricity.
Without electricity, nothing can be done, and all walks of life are affected
The factory is closed, and the store is lit with wax (Photo: OneImage)▼
The biggest problems in Mandela and the ANC were the neglect of industry and the premature acceptance of the "neoliberal" policies advocated by some Western countries, such as opening up manufacturing and finance for "free trade" and bringing in foreign capital without being able to cultivate their own competitive firms. In addition, the concept of environmental protection that is too "ahead" has further damaged the development of domestic manufacturing enterprises, and so on.
Another cause of South Africa's industrial decline stems from the deterioration of the social environment.
It turned out that South Africa had a large number of blacks who were segregated as cheap labor, and after the transition, many blacks from neighboring Zimbabwe and other countries poured into South Africa to find employment, which led to the continued high unemployment rate of South Africans; A large number of unemployed young people are doing nothing. This, coupled with corruption and inefficiency in the South African police system, has led to a high incidence of criminal offenses such as murder, robbery, and arson in the country.
Although it can't catch the first echelon, it's not low▼
Young people cannot find a way out, do not see the future ...
(Photo: Shutterstock)
The abolition of apartheid and the deterioration of the social environment, coupled with the continued attraction of the United Kingdom, the United States, Canada, New Zealand, Australia and other countries, led to the continuous loss of high-skilled talent. The loss of high-skilled talent has directly led to the closure of many enterprises, the stagnation of technology, and accelerated the deindustrialization of South Africa.
According to estimates by Statistics South Africa, between 1 million and 1.6 million skilled professionals and managers emigrated between 1994 and 2004. Perhaps the most famous of these is Tesla boss Elon Musk (Musk was born and educated in South Africa).
What would life be like if Musk hadn't left South Africa?
(Photo: twitter@mayemusk & OneImage) ▼
Under the influence of these internal and external factors, South Africa's industry fell into a continuous decline and fell into premature deindustrialization. Under the influence of deindustrialization, South Africa's total economic output has been surpassed by Nigeria and Egypt from the absolute first in Africa, and has become the third.
Another big consequence of deindustrialization is rising unemployment. While a few blacks benefited from the end of apartheid, unemployment rose overall among blacks.
There are too few jobs, too narrow channels of ascent, and too difficult life
(Photo: Shutterstock)
In 2022, South Africa remained the country with the highest unemployment rate in Africa, and the large number of unemployed people led to a further deterioration of law and order in South Africa, forming a vicious circle.
TEunomix Business & Economics, a Johannesburg-based political and economic risk consultancy, even published a report in 2020 stating that South Africa could even become a "failed state" by 2030. In 2022, the World Economic Forum also said that South Africa is at risk of "national collapse".
There are too many problems accumulated in the past, and they are too heavy
At this time, South Africa gradually slipped to the brink of danger
(Photo: Shutterstock)
The difficult development of reindustrialization
In 2011, South Africa unofficially joined the BRICS, but there have been voices questioning South Africa's lack of "gold content". Despite South Africa's ongoing decline, the emaciated camel is bigger than a horse, and South Africa remains Africa's industrial powerhouse.
For example, in the automobile manufacturing industry, South Africa ranks among the world's automobile industry powers, is one of the world's major automobile and parts manufacturing and import and export countries, BMW, DaimlerChrysler, Volkswagen, Toyota, Ford and other multinational companies have established production bases in South Africa.
Some of the old books accumulated by industrialization in the past are still there
Workers still have certain advantages in terms of skills and qualities
(Photo: Shutterstock)
The manufacturing depression in sub-Saharan Africa has bottomed out in the first decade of this century, and the number of workers in African factories has steadily risen since 2010. South Africa's investment environment remains relatively favorable on the continent, with China's direct investment stock in South Africa ranking first in Africa by the end of 2020.
Compared to other countries in the African region
South Africa's business environment, software and hardware facilities are indeed better
(Johannesburg, Photo: Shutterstock)
The South African government is also aware that premature deindustrialization is unsustainable and has embarked on a tangible further development of manufacturing in recent years. In August 2012, the South African government released the National Development Plan 2030, which proposes to promote the development of labor-intensive manufacturing by deregulating the labor sector and reducing the cost of doing business.
The plan also increases government spending and increases investment in infrastructure such as roads, railways, ports, and electricity, to support rapid economic development; It will also further clarify the property rights system and relax investment restrictions in the resource industry.
At the same time, investment is made in the construction of housing as a supporting part of the plan
(Photo: Shutterstock)
But when deindustrialization comes easily, reindustrialization faces all kinds of difficulties. In October 2020, President Ramaphosa announced South Africa's economic recovery plan at a joint session of parliament, with the promotion of industrial growth as a key objective.
The lessons of South Africa's deindustrialization prove that except for a few small countries with unique natural conditions, the modernization of late-developing countries must develop industry, and industrialization is the only way to modernize.
Resources:
1. Mu Tao. Social Sciences,1997(08):19-23+27.)
2. Möritz Mbeki, Xiao Hongyu. The ruling class and underdevelopment in South Africa in the post-apartheid era[J].West Asia and Africa,2008(04):38-46+80.)
3. Ministry of Commerce of the People's Republic of China: Guidelines for Countries (Regions) in Outbound Investment and Cooperation: South Africa (2021 Edition), http://www.mofcom.gov.cn/dl/gbdqzn/upload/nanfei.pdf.
4.https://www.aljazeera.com/economy/2020/9/10/south-africa-heading-towards-becoming-a-failed-state-report
5.https://en.wikipedia.org/wiki/Economy_of_South_Africa
*The content of this article is provided by the author and does not represent the position of the Earth Knowledge Bureau
Cover: OneImage.com
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