Letter published in Business Day,28/3/13

Economic Mishmash

I  have no desire to rain on anyone’s parade. But amongst all the nonsense being written about Brics, Borge Brende, MD of the World Economic Forum, in his Comment (BD, 27/3/13) begs a response. 

Mr Brende would have us believe that Brics is a sort of buffet, along which South Africa can drift loading up on choice items. Like the look of  Brazil’s reduction in social inequality ? Put some on your plate. Like China’s growth figures? Dish up freely. Add a side serving of gender equality quotas, plus soupcon of the old Non Aligned Movement, and you have a dinner fit for Africans, Mr Brende says.

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China has used its surpluses to invest in productive infrastructure. The result is sustained growth of 10 % per annum- but without a national pension scheme ( yes Blade). Brazil has instead invested it in social infrastructure. The result is reduced inequality – but with much lower current growth rates. It’s a matter of  hard choices, not an easy smorgasbord. And Russia ? What does this declining economy have to offer Africans ? The same as China ?

Regrettably there is no sense of any hard choices to be made between some of these options. The result, if it ever were achievable in the first place, would be acute indigestion.

Anyone in Africa  who follows Mr Brende’s ingratiating comments as a guideline for anything is doomed to disappointment.

Dr Gavin Lewis

DA MPL Gauteng Legislature

Spokesman: Economic Development