South Africa, which was ranked 40 in 2005 in the World Economic Forum’s (WEF) Global Competitivenesss survey, has fallen back to 45th place according to the 2006 report released on Tuesday.
“Strong global growth and high commodity prices, combined with buoyant consumer demand, have enabled South Africa to grow at a robust rate exceeding 4% since 2004, set to continue this year,” said the WEF.
However, the WEF added that there were still many problems to be overcome, not least of which was a striking dichotomy between first- and third-world characteristics.
“Despite significant achievements since the ending of apartheid in 1994, South Africa is in many ways still struggling with its legacy, including gross inequalities, high unemployment, major skill shortages and a striking dichotomy between first- and third-world characteristics,” said the WEF.
The WEF added that entrenched inequalities acted as a deterrent to growth, development, employment creation and poverty eradication.
“While economic growth is essential, it is not a guarantee of employment creation, and South Africa’s unemployment situation is grave,” the WEF said.
The countries that have moved above South Africa now are Barbados (new entrant at 31), Qatar (now 38, previously 48 — move in part due to Sasol Oryx project), Malta (39, previously 44), India (43, previously 45)and Kuwait (44, previously 49). — I-Net Bridge