Friday 7 October 2016

LET THE MARKET DECIDE



Running through all the usual charts there are few startling developments beyond the strength of the London share market and the weakness of its currency. Somehow both factors are being blamed on Britain’s exit from the European Union. Even our old anti-sports tour foe Peter Hain has emerged from somewhere to tell SA what a disaster Brexit will be for this country. But all forecasts of woe and gloom would be forgotten if global economies rebounded and everyone got busy again. Those looking for positive signs will see twitches of life in some of the commodity prices. Others, however, will be absorbing the amazing messages about how quickly and accurately intelligent machines are performing tasks in even the so-called knowledge based professions. Lawyers it seems will be particularly affected. Mind you the champions of driverless cars obviously have never been to Africa. It will be a while before a computer will be able to tell which lane the taxi will use next.
The two ministries tasked with equipping the young people of South Africa with the knowledge and skills they will need to compete in the world spend nearly 23 cents of every tax rand collected. But this funding is insufficient and every institution needs to collect fees to survive. Fees can be abolished only if the nation agrees to cover the shortfall by increasing either the fraction (at the expense of other services) or the total tax collection. Or indeed both. Please will the noisy and violent ones tell us how to balance these equations.
In the meantime, education is in a mess. Only in some small enclaves where vestiges of old systems and standards survive is anything effective coming out of the state owned and run institutions. Parents, the majority of teachers, and once they are old enough to grasp the issues, the learners (dread term) are frantic.  Politicians and bureaucrats are racing to distance themselves from the mess. President Zuma made only a cameo appearance before bolting from a meeting where he was expected to be presidential. The buck passing is breath-taking.  
There is scant likelihood that central planning can solve this problem and only the market can do so. Simply return school education, at least, to be a local competency run by parent-elected school boards and principals. Close down every provincial ministry and release everyone (teachers and administrators alike) on those payrolls to go and offer their experience and skills to the highest bidders. Many will be disappointed to learn what real employers think they are worth. And then critically, through a mixture of tax cuts and education vouchers, return the money to those who are the actual buyers of education.
Those baying for free education – “because it is a right” -- and militant teachers’ unions will not like any of this very much, but maybe more kids than at present will be able to reach heights they currently have no hope of attaining.
In the meantime, over at another hall of government it has been decided that we drink too much booze but the good news is that it’s not our fault. Apparently the blame lies with the people who sell us our tipple. They should not serve us if, in their view, we have already had enough. This of course dovetails neatly into the current climate of not being responsible for one’s actions and makes the police’s job that much easier as they can simply ask the drunk where he purchased his last toot and arrest the offending shopkeeper or barman. The proposed legislation also reinforces the quaint notion that 500m is just far enough for a school- or church-goer not to be tempted by the demon drink. But perhaps the most difficult thing to understand is how the twin statistics of our world-beating liquor consumption, and our desperate levels of poverty match up. Someone is fudging the numbers.
Last week it was Pretoria. Now its Durban. Each city got to host both a cricket and a rugby test against antipodean teams almost back to back. The hospitality industry hopefully did well. The only missing piece to make it perfect will be if the ‘bokke hand the All Blacks their first loss in years. This would be even more spectacular than the sight of a Formula 1 engine “letting go”. The smoke and flame and driver frustration makes for a great spectacle.

James Greener
Friday 7th October 2016 (The Tide will be out next week. I’m going birding/drinking)