Thursday, February 02, 2012

Blog #3: Level of inequality soars in SA


            The levels of poverty and inequality have soared in South Africa. We live in a world of extreme riches and extreme poverty and according to the chairperson of the Bench Marks Foundation, South Africa has the highest level of inequality in the world. Bishop Jo Seoka, chairperson of the Bench Marks Foundation, stated at the launch of the Bench Marks Centre for Corporate Social responsibility that "the optimism for obtaining equality depends upon big businesses doing things differently in the new South Africa"  (paragraph 1). The aim of The Bench Mark Centre is to contribute towards sustainable development through integrated research that involves communities. What this organization has seen over the past years through their research of mining companies is that they see not only a free for all approach to exploit labor but to exploit communities and the environment as well. Most communities are actually worse off due to the mining activities in the area. There are many damaging effects due to the emissions from the mining sites such as cultural shock, loss of livelihoods, and health problems that are negatively affecting the well being of various communities. Mines often relocate people and don't take their lifestyles into account as they are moved from a rural existence into the market economy. The Magobading community used to not consider themselves poor but once they made way for mining, they lost their cattle, crop production, and their total way of life and now consider themselves to be poor and helpless even though reports try and make them look as if they are better off. Bishop Seoka feels that "we are living in a world dominated by greed and selfishness; a world where corporations dominate ideas and values" (paragraph 10). Globalization dictates that each country should do what it can do best (paragraph 11) and for South Africa, this means having to rely on mineral production. Thus, the bishop also feels that "We need to be talking about what economic sustainability means and how it can be translated into development for people, and how our minerals can develop this country. Not how it only benefits shareholders" (paragraph 12).  
            The problem of inequality that South Africa faces seems to be a growing issue for many poor countries as globalization continues to cause more and more exploitation of people in poor nations. South Africa is a good example of dependency theory since they are dominated and exploited by the mining companies just so other people can live well while they are forced to suffer and live so poorly. The idea of comparative advantage is also represented as South Africa is to rely on mineral production since it is "what they do best." However, most of the population is still poor since they don't reap the benefits of their so called comparative advantage. Bishop Jo Seoka speaks the truth when he talks about how corporations dominate the ideas and values of our world. It is apparent that all these companies are concerned with is finding labor as cheap as possible. They do not care about the actual conditions that these poor people work and live in and the effects that it has on their lives simply because they would rather have convenience and cheap labor. I also agree with the bishop when he states that economic sustainability needs to be translated into development for people. What has become the problem today is that many companies are only concerned with their own profits and benefits, only wanting to make money, rather than actually having concern for the people they exploit and helping these people in these poorer countries better develop instead of making their situation worse. Therefore, I believe that globalization has worsened the conditions of many people around the world and that it is something that needs a better resolution. This example of South Africa gives only a small insight into what the situation is like in many peripheral countries today.


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