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Cosatu general secretary Zwelinzima Vavi. Photo: Leon Nicholas
South Africa's economic structure still reflects colonialism and apartheid, Congress of SA Trade Unions general secretary Zwelinzima Vavi said on Friday.
“The main reason why we have failed to create employment, and on the contrary have been losing jobs, is that we have remained trapped in an economic structure which we inherited from the days of colonialism and apartheid,” he told an informal economy conference in Cape Town.
“Like so many other former colonies, we have been over-dependent on the export of raw materials, in South Africa’s case it's gold, platinum, coal, and diamonds.”
This was why Cosatu had been campaigning so strongly for a new developmental growth path to take the country out of the economy inherited from colonialism and apartheid and build one based on manufacturing and the development of a skilled, well-paid labour force.
“That is the only way we can hope to achieve the government’s ambitious target of creating five million new jobs by 2020, a target which we have to reach if we are to tackle all the problems which are rooted in our levels of unemployment,” Vavi said.
The relentless rise of unemployment, the growth of the informal economy, and the rapid casualisation of labour were the biggest problems facing the international labour movement.
International Labour Organisation (ILO) statistics showed that in Africa, somewhere between 60 and 90 percent of the active population was now employed in the informal economy.
In sub-Saharan Africa, if South Africa was excluded, the share of informal employment in non-agricultural employment was 78
percent.
Most informal workers were women and young people who had no other choice than the informal economy for their survival and livelihood.
Workers in the informal economy generally had no contracts, no fixed hours, and no employment benefits such as sick pay or maternity leave.
Most were deprived of security and access to trade union membership.
“There is a tiny minority of enterprising informal workers who can climb the first few steps to prosperity, some of them going on to become successful entrepreneurs,” Vavi said.
But for the vast majority, the informal sector meant grinding poverty.
There was a clear correlation between working informally and being poor, Vavi said.
Where informality was on the rise, the numbers of working poor were increasing or remained the same, while conversely in countries where informality was declining, the numbers of working poor were also down.
Although their individual incomes were low, cumulatively these informal workers contributed significantly to gross domestic product (GDP).
Vavi said the ILO had estimated that in 16 sub-Saharan countries, on average the informal sector contributed 41 percent to GDP, ranging from 24 percent in Zambia to 58 percent in Ghana.
These figures suggested that the informal economy was not only a significant employer but was critical to local economies, he said. - Sapa
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Darth Vader, wrote
I did not really want to get involved in this debate, as I am certainly no fan of Vavi's , but after reading some of the comments, I do tend to agree with Mr Vavi...B....U.....T!! Mr Vavi...the "labour force" in sunny SA ..DOES ..NOT...WANT...TO..WORK..SIR!!..Therefore, I have to say, the FORCE is not strong with them!!!!!Get them to want to work and a willingness to learn and not all want to be "big shots" at twenty, driving fancy cars...THEN SIR..we might get some where....
Bas, wrote
All you need to do is look at just about any global standards index to know that we have as a nation slipped up badly in the last decade and a half. This steady path to gradual decay that we appear to have taken is then a current phenomenon. It has less to do with colonialism, but more to do with our contemporary policies of maintaining an unwarranted level of privilege within the ruling and unionised classes, which is aggravated by a distinct lack of productivity and endemic corruption. This state affairs, is more closely akin to the East German model of old. What we need Mr Vavi, is a greater emphasis on entrepreneurship, competitiveness and excellence, not rhetoric about the past.
BigD, wrote
This is such a tired old excuse. USA, Canada, Australia, New Zealand, Singapore, just to name a few were also Colonised (by the same coloniser) and had their own forms of 'apartheid'. The difference is that gthey are not run by and incompetant, corrupt cabal of 'post struggle buddies' !!
Anonymous, wrote
Joe, wrote
I am amazed at White vrs Black comments and hostility that exists in this country and l have no one to blame but the present leadership of the country,Malema and the Gang,Sadtu,Vavi and Cosatu, and the corrupt officials who have destroyed this beautiful country.I am ashamed to be either white or black.NONE has played a role to limit this disaster l see and eventually l presume we need a political party or Civil Society to bring us together.The ANC is not the future of this country neither DA nor COPE.
Huugh!, wrote
Mr. Vavi, bring back the City or Town Engineer position disbanded globally by the IPCC in 1988. It will be two steps backwards and five steps forward instead of 100 steps backwards into the Dark Ages and none forwards, which is where COP17 agendae is going. There's NOTHING wrong with cheap power, which does not stifle and control the economy.
tony, wrote
Vavi seems a tad confused, first he tells us how bad an informal economy is and then he says that in other african countries the informal sector is vital to their economies, very confusing. Then he tells us that under the old gov people had jobs but now they dont. So whose fault is it then, the people who used to run the country or those that have run it for the last 17 years. Seems ther are only twi causes of this downward spiral, either the ideas thay are trying to implement are wrong or the people implementing then are not able to do their jobs. This isnt about jobs, this is about the trade unions being pissed off because informal employment and business reduces the amount of union members therefore redues their power and money they get in subions. Read wilbur smiths "Rage and Golden Fox" and see how these unions and the anc manipulated things, most of it is very true even though they are novels. Made me think !!!!
Anonymous, wrote
At a stage I had some respect for MR. Vavi but it has become apparent he is just another blind sheep. Another ANC bred hound looking to bring hatred, corruption and sepratism into SA,
Anonymous, wrote
At a stage I had some respect for MR. Vavi but it has become apparent he is just another blind sheep. Following the lead of the govt. criminals. He only sees what he needs to see in order to create hatred and mayhem in the country, to plunder the wealth of SA. Idiot.
PETER, wrote
Mr Vavi just remember that the majority of people here are unemployable including yourself and malema and of course our lovely politicans,I would challenge them to try to get a real job, not one handed on a platter by the anc and unions, you are all morons and couldnt work in an iron lung if you get my drift and understand what I am saying ???? BY the way how did you and BLADE spend the half a million rand given to both of you by Willie Madisha years ago
Active, wrote
What have you created to the benefit of this country vavi? Nothing! all you and siptu (with ideas from IRELAND)have done is put strain on the companies trying to keep SA going. As long as people have Jobs which is so important, what Jobs have you and Siptu created?
Anonymous, wrote
@ Roselyn - I agree with some of your comment, it is very sad the hatred in this country. But I believe it is not breed by whites who hate ANC, when Mandela came in to power, whites shed tears just as the blacks, we felt that things could finally be ok in SA, that we could work together as a people and live free lives, unfortunately we have a govt. who breeds hatred, fustration and crime. We have been forced to hate the ANC, not only because of the legal corruption called BEE or the massive fraud of tenders given for money under the table. It is because we are paying taxes, we want our taxes to help the community, to build houses for people, to better SA and its people. But it is being used to make a few elite rich, to waste on houses, planes and parties while our fellow citizens (black and white) strave, homeless in the streets, our roads, police and medical services falling to tatters becasue of the blatant corruption in the people who govern us, the constant lies and cover-ups. We are not anti-ANC, we are anti-corruption and unfortunately at no fault of the people ANC stands for corruption and nepotism. This is the fault of the ANC, not of the whites. The whites havent forced Mr. Zuma and his comrades to rape the country, to keep the poor homeless and dumb so they can continue their reign of financial rape on all our resources. If the ANC would have been honest men not out for their own greed SA would be miles ahead of where we are now and racism would not be so prevelant. Between BEE, labour laws, greedy, illogical unions and tender fraud this countries economy is doomed and the people at the top are too stupid or simply dont care to change it. ANC breeds racism as they have turned SA into a criminal state and are keeping their voters in the dark by not allowing a decent education system to flourish. This has nothing to do with white vs black, this is the ANC vs all the people of SA.
Billy, wrote
Roselyn----OH PLEASE PLEASE someone get this bleeding heart a bloody soap box. Get over yourself dear
Billy, wrote
IN YOUR DREAMS VAVI old sport old pal ---Dont you wish!!!at least that old economy worked dispite all the economic sanctions your sanctomonious buddies put on this country--the so call "majority" were never better off than they are now you dimwit 17 years????? you guys have done nothing but rape and destroy everthing that worked e.g. Education, Health mining the list goes on . Basically my narrow minded friend you lot have buggered up the fully functional working system that you INHERITED!!!!!!GET THAT VAVI INHERITED!!!
Ringmaster, wrote
Of course you are quite correct. Pleased that the inability of Eishkom to supply power, the inability of Slownet to supply transport, the inability of workers to work and the requirements for bribes have absolutely nothing to do with it. After all, it's only been a short while that the curse has been lifted.
vkdk, wrote
Anonymous - You sound racist by referring to whites not needing govt and that you built up SA. Please dont discount that the previous got was evil. Please dont discount they were racist and gave whites everything including land (by ACT : Group Areas); which are worth a lifetime of mortages which other races need to pay dearly for. Why cant you stop referring to colour and speak about the current govt being ineffective without speaking about colour. Its not fair when you and others speak back and white. We're going nowhere if you find differences in colour as a basis for arguments.
Huflungdung, wrote
Mr.Zwelinzima Vavi you are stuck in a time warp....you had more than 15 years to rectify the wrongs....but what do you (ANC) do simply blame it to the past....and that a freaking LAME EXCUSE....sometimes in life its better to admit that you don't understand how run an economy such as South Africa has.
John in Durban, wrote
The four basic requirements for economic growth in Economics 001 - Land, Labour, Capital and ENTERPRISE. The last is the missing factor without which there will be no growth. You don't just learn it, you have to have it! It has nothing to do with Apartheid or "Triparteid" (sic).
Joe, wrote
one line describes it all: no education, no skills, no productivity, in spite of earning much less than in western countries cannot compete due to that (in other words lazyness).
Huugh! , wrote
If what is also meant between the lines is the 18,000 locusts flying in for the COP17 Dbn conference vavi is right. We are trapped, but the good news is:There should be no need for separate accounts for water and electricity as if one can afford to choose, which utility not to be cut off from. There should also be no sewerage charge added to utility bills as this should be covered by property rates and taxes. The higher the density the less expensive the service will be. Traditionally cities exist (amazing!) for protecting people who are not farmers by nature. I do not believe that democracy in RSA is hell-bent on reverting to an agrarian, subsistence or pre-industrial revolution society and climate change protagonists (who behave like Malthusians and would usher this antiquated the-earth-is-flat-system back in) are definitely in the minority.The 'black gold' we have is more than just the people. Let's continue using it for ourselves and astronomical,immature, imported alternative energy costs the boot they deserve.
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