Is the South African economic system fundamentally broken and can it be repaired?
Eusebius McKaiser hosted a group of experts to debate the economic system of South Africa and how inequality impacts on in.
This comes after Oxfam International released its annual report which gave insights into the world's inequality.
According to the report, billionaires around the world saw their combined fortunes grow by $2.5 billion each day in 2018, an annual increase of 12%.
In contrast, the 3.8 billion people at the bottom of the scale meanwhile saw their relative wealth decline by $500 million each day, or 11% last year.
We can debate capitalism but that won't put bread on the table but for me. I think the important thing is how does the state then intervene? And I think for me there are three 'I's when we are looking at inequality. The institutions of the state, income distribution and interests as in class interests.— Isobel Frye, Director - Study in Poverty and Inequality Institute (SPII)
An economist at Nedbank, Busi Radebe says according to studies the major driver of inequality in South Africa is unequal wage income.
If you look at unequal wage income you ask yourself what is its major driver? It is unequal access to the labour market.— Busi Radebe, Economist – Nedbank
The system is not fundamentally wrong, it's how we used the system that is fundamentally wrong.— Busi Radebe, Economist – Nedbank
However, the COO of Business Leadership SA argues that the issue is equal opportunity in the economic system of the country.
The issue is that as business, we don't buy into this transformation thing. As business, we believe that transformation is a black issue and it's not a black thing it is a South African issue.— Busi Mavuso, COO Business Leadership SA
The issue here is that as business we continue to pay white people more that we pay black people. The issue is that we continue to pay women less than we pay men. We are just not interested in transformation, we try and find way to beat transformation.— Busi Mavuso, COO Business Leadership SA
Mavuso further states that business needs to look at how to meaningfully address the history of dispossession and oppression.
@Radio702 totally enjoyed the engagement. quite enlightening. indeed, the gov has to take a decisive role of intervening around issues of a minimum wage, but sadly...this is not the reality in SA. welldone @BusiMavuso2 @BusiRadebe_ @Eusebius and Isobel Frey— Lesedi (@boutwellness) February 4, 2019
Listen to the full conversation and caller's views on the topic...
This article first appeared on 702 : Business doesn't buy into transformation says Business Leadership SA