BACSA Weighs in on the WEF’s Global Competitiveness Report (2009-2010)

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“While South Africa has made significant inroads over the last two years on such indicators measured by the report as the country’s financial markets - where we jumped from a ranking of 24 last year to a ranking of 5^th this year - we are unfortunately not able to say the same for results in the WEF’s Global Competitiveness Report (2009-2010) related to the costs of doing business due to crime and violence. For two years running, we have ranked last out of the 133 countries assessed through the report”, says Wright.

“An added concern is the fact that while last year the key constraint to business identified by business leaders was South Africa’s uneducated workforce, this year crime and theft has been identified as the most problematic factor. South Africa’s uneducated workforce, with a low university enrolment rate of only 15%, in the 2009-2010 report is secondary. This shows that perceptions have worsened,” says Wright.

“The results of the Executive Opinion Survey of 2008 and 2009 respectively, while not based on hard data as to the costs of crime and violence, give a sense of the urgency with which the business community wishes to see the unacceptable levels of crime and violence in the country addressed. Due to the pervasive nature of crime, these levels affect not only the business community, but citizens, investors and travellers to the country”, says Wright.

“It is for this reason, that the business community, through the Special Purpose Vehicle of BACSA, has engaged Government to build a partnership where business can be part of a solution that tackles crime as a collective effort. It is only through such collective efforts that we will see South Africa’s ranking on the issue improve.”

“Having said this, as a consequence of the negative perceptions, mobilisation efforts have been responded to positively. We are in common agreement that crime is a top priority. As business, we are highly encouraged by the level of commitment that Government is showing. It is this type of commitment that will see us turning the corner on the issue. Until then, the report reminds us that our sustained and combined efforts are needed, now more than ever, to combat crime effectively and create a Criminal Justice System that maintains the rule of law and deters crime,” says Wright.

“In both the 2008-2009 and 2009-2010 Global Competitiveness Reports of the WEF, South Africa has maintained a ranking of 106 on the extent to which the police can be relied upon to enforce law and order. What the report indicates is that current efforts to revamp the Criminal Justice System and improve the performance of the law enforcement agencies have not yet taken a sufficient hold to change perceptions. However, budget allocations to improve forensic services, increase the number of detectives, install and integrate electronic systems, among other actions, have been welcomed. The Department of Police’s statements with regard to routing out corruption within the police are also promising. The impact of these measures to improve service delivery will hopefully bear results and change perceptions in the medium-term”, says Wright.

“There is also much that we can do to support the police. Yes they play an important role in crime reduction, but as citizens we also need to take a more holistic approach by asking what we can do to prevent crime and create a more caring society,” says Wright.

“The crime situation requires a collective response. BACSA assists to mobilise the response from business through work with a number of industry associations. As a result of this work, stronger levels of co-operation and information-sharing between business and Government have been achieved. It is through these joint efforts that we are able to assist Government to reduce and prevent crime. However, the performance of the entire Criminal Justice System needs to be improved to increase the likelihood of criminal activities being successful prosecuted, so that organised crime syndicates are closed down and perpetrators arrested. The high rates of recidivism show that more attention needs to be given to rehabilitation programmes at the other end of the Criminal Justice System value chain.“

“Over the years, crime has evolved and many lessons have been learned. Government’s commitment, allocation of resources, reliance on partnerships and involvement of communities and business to develop joint solutions will help to sustain the effectiveness of anti-crime initiatives. It is only through a collective response that we will rid the country of the scourge of crime and make South Africa a safer and more secure place to do business, live, thrive and prosper”, says Wright.

The health and levels of education of the South African workforce are other areas flagged by the WEF report released 8 September 2009.

Read the response of the Minister of Police, Mr Nathi Mthethwa, 11 September 2009, in response to three questions posed in Parliament on the WEF Global Competitiveness Report of 2008-2009.

Read some of the articles which have appeared in the media on the story (Morning editions):

• Diamond Fields Advertiser - 15 September 2009 - p.5
• Pretoria News                   - 15 September 2009 - p.4

• Daily News                       - 15 September 2009 - p.2    (afternoon edition)
• Cape Argus                      - 15 September 2009 - p.5    (City late)

The above articles are made available through the pro-bono support of Newsclip to BACSA.