South Africa has hired Akira Goshi of the Japan Productivity Centre for Socioeconomic Development to help develop a productivity blueprint for the next five years. According to a report in today’s Sunday Times (Productivity just too low, pay too high) SA can become more globally competitive if it works on its productivity.
The article is really a good news article, it recognises that as an emerging economy we face some serious challenges. Rising above these challenges is simply a matter of realigning our strategy to take certain things into account. For instance – it may be an idea to move certain production activities to China
You can’t beat the Chinese at what they do best — being the lowest-cost producer of the world in most things. Even Vietnam, Taiwan and other Asian countries, which were once good cost centres, have moved their manufacturing facilities to China.
I find it interesting that Goshi has identified a series of critical issues that must be addressed immediately in order to improve productivity, the list below seems fairly obvious to me. (Italics is my emphasis.)
-
The gap between the rich and poor is growing. (This is the ultimate reason for BROAD BASED BEE).
-
Greater focus on practical skills.
-
Government departments and institutions need to be more aware of the needs of the country.
-
Quality and good service must be installed as a norm at public places.
-
Crime has to come down.
-
There must be a culture of honesty to root out corruption.
-
Beneficiation – SA must develop its raw materials into semi-finished products before it exports it. (Preferential procurement provides bonus points for beneficiation.)
It’s clearer than ever now that the success of BBBEE will determine whether South Africa succeeds.