INPUT BY THE REPRESENTATIVE OF THE BUSINESS
CONSTITUENCY: BRIAN MOLEFE, PRESIDENT OF BUSA
In his opening, Mr Molefe advocated for Globalisation and
economic growth that would ensure social justice, it should
not only advance material values, but other important values, such
as a concern for the environment, for life itself and for morally
correct conduct.
The implications of globalisation to the South African economy
could result in:
- Slower global growth led to a fall in commodity prices. As a
commodity exporting country South African exports were heavily
impacted upon by this fall in prices.
- South African trading partners, in the Euro area (35%) U.S.
(15%) Japan (10%) and U.K. (15%). If growth is faltering in these
economies as already mentioned by implication, 75% of our trade
will be affected -not a rosy picture at all. Export sales will
slow, import demand will remain strong resulting from
infrastructure spending towards the FIFA 2010 World Cup and the
already wide current account deficit will just balloon.
- Tighter global financial conditions lead to declining portfolio
inflows, consequently affecting our current account deficit
financing stance, which may ultimately push us to use borrowing
facilities.
- The domestic manufacturing sector under-performed in the third
quarter and the picture going forward was looking gloomy.
It was good that South Africa had Nedlac as an organ that
brought together different Social partners. The question though, is
whether Nedlac itself has the necessary wherewithal to discharge
fully its mandate.
Further, we have to ask ourselves whether there is no distance
between Nedlac and the mass of our people. In other words, whether
the type of social dialogue, which we demand at global, continental
and national levels, happens as it should in
Nedlac.