South African economists expressed shock on Thursday at a report showing the country dropping 12 places in global competitiveness rankings, partly due to discrimination in the workplace.
The World Competitiveness Yearbook, which ranks 55 countries on their ability to maintain an environment conducive to business dealings, saw South Africa slip from 38th to 50th in the past year — the biggest drop on the list.
”It’s shocking,” said Sello Mosai, executive manager of knowledge development at the South African National Productivity Institute (NPI). ”Anybody can underperform, but if you have this huge, huge drop it really kind of leaves you dumbfounded.”
The NPI partnered the Swiss-based International Institute for Management Development (IMD) in conducting the survey, which ranked South Africa last in terms of workplace discrimination.
Local media speculated this may refer to the country’s affirmative-action policies, but Mosai said it could include discrimination in all areas from age to religion.
The South African economy has been growing steadily at about 5% per year with a strong showing in terms of cost of living, foreign direct investment and tourism growth.
But high rates of unemployment and crime and stringent labour laws were highlighted in the report as hindrances to economic development.
Mosai said all economic and social indicators showed South Africa was moving forward. But these weaknesses and the ability of other countries to progress quicker posed new challenges.
”It is not an issue of South Africa doing worse. It is other countries doing better [with more] optimism towards their own countries. As a country we have to learn that other countries are always improving. It is competition; we have to be competitive ourselves.”
Two-thirds of the competitiveness report is based on economic statistics and the rest on opinion surveys of business executives and public servants.
South Africa is one of the 15 countries, including Finland, France and Brazil, that have been steadily losing ground in recent years. — Sapa-AFP