The Roots of Collapse

The Roots of Collapse

A South African man sits on the side of the road, staring at the mines he used to work in. That was before he lost everything; before his wages were lowered and he didn’t have enough money to survive. That was before he gave up. With 51% of young men and 48% of young women jobless in South Africa, high unemployment rates have crippled the country’s economy (Devlin). Young citizens have immense potential to advance the economy, but their lack of opportunity to find work causes South Africa’s fiscal situation to deteriorate. A variety of programs have been put into action to improve the economy, but none have been effective enough to rebuild the financial crisis. The economic issues not only affect the citizens of South Africa, but the country’s overall economic abilities. The downfall of the South African economy, caused by increased debt and corruption, worsens unemployment and poverty for the already struggling citizens.

Corruption within businesses and corporations has overtaken what used to be a thriving economic system. Since 1996, the Growth, Employment, and Redistribution program has aimed to stimulate growth and introduce new jobs. However, the economy’s growth has drastically slowed down, and unemployment has risen since then (BBC). These issues endanger not only the African people, but many industries and companies that are the backbone of the economy. Strikes against South African mines, a major source of employment and wealth, have crippled the industry, which lowers Africa’s world status and incurs huge debts (AfricaCan). This destructive spike in unemployment also leads to societal and general economic issues. 35.9% of the African population lives below the poverty line, which is much higher than the 15% in the United States (BBC). Protests have risen in hundreds of towns that are homes to the poor black masses, who have suffered as a result of the unfavorable economy.

Unemployment is an additional component that contributes to the fiscal decline. This issue stems from corruption within the foundations of the country. At least half of the youth population lack foundational skills, including literacy and numeracy, because of their weak education (Global). This education deficiency results in a shortage of professional skills among grown workers, which leads to unemployment. Africa’s unemployment rates remain one of the highest in the world, which only serves to disable economic prosperity (BBC). Corporations do not produce enough income due to the scarcity of skilled workers. Because money- making corporations generate low revenue, they in turn cannot provide high enough wages for their workers. These workers find it hard to survive and eventually fall below the poverty line. This increasing poverty has come to be an unfortunate downside of ongoing unemployment, and is an added influence in South Africa’s economic collapse.
This constant repetition of low wages, unemployment, and poverty, results in a vicious cycle which ends up paralyzing the economy and preventing economic growth. South Africa is currently developing new programs, including the National Development Plan, which hopes to monitor economic performance and increase national development (BBC). Until a reliable solution solves this issue, the South African man on the side of the road, along with hundreds of other unemployed citizens, will continue dreaming about the day they will find a job.

Works Cited

Devlin, Kristen. "Reducing Youth Unemployment in Sub-Saharan Africa." Reducing Youth

Unemployment in Sub-Saharan Africa. Web. 08 Mar. 2016.

"South Africa's Economic Challenges - BBC News." BBC News. Web. 04 Mar. 2016.

"The Impact of the Financial Crisis on South Africa." AfricaCan End Poverty. Web. 07 Mar.

2016.

"South Africa Economy: Budget Aims to Avoid Ratings Downgrade" Global Issues in Context.

Economist Intelligence Unit: Country Views Wire, 26 Feb. 2016. Web. 7 Mar. 2016.