By DevanMoonsamy

Will it work or will we be worse off?

The financial exclusion is a global problem with over 1 billion having no access to formal financial systems. But what does ‘formal financial system exclusion’ mean exactly? If people are choosing to hide their money under the mattress rather than bank it, it is perhaps understandable. Many governments have used socialist arguments to seize control of banks. This never goes well, and people lose their savings and investments.The banks are then very poorly run, bank staff are laid off or don’t get paid,and the institution ends up closing, at least to public access.

This is likely the way forward for South Africa in the long term since the government has taken serious steps to end private ownership of land. Recent developments may seem like a benign concession intended to help the poor, but history has shown over the past 200 and more years that these government policies always leave the poor in a worse off position. Government officials’ greed knows no bounds in such situations. Access to citizens’ banking system is a massive risk, and it is inevitably next on the agenda once land expropriation has been perpetrated.

The people of Russia and other Slavic nations,and many African nations struggle to this day because of these exact types of policies. Recently, Venezuela has tried to warn South Africans not to proceed with land expropriation because it leads to economic hardships, but politicians are about to get access to our land, and there seems to be nothing we can do to stop them. If they can change our Constitution once in this way, we can expect that politicians with divisive agendas will continue to do so, and we are on a road to losing more of our hard-won rights.

International community has tried to warn us but politicians are deaf

In2009, Venezuela began what South Africa is doing now, land grabs, but Venezuela’s situation only got worse and in a very short time. One problem Venezuela had at the outset was that it imported food rather than producing enough. It was believed that by getting land into government hands, it could then be given to the poor who would then grow more food. This sounds good in theory, but in practice, it is disastrous for many reasons.

Venezuela soon began buying even more food into the country than before. This sounds a lot like what has happened in Zimbabwe. Those with knowledge of history and foresight are worried about what is about to happen in South Africa. Experts even now feel that Venezuela is too far gone and a ‘lost cause’. Its poor are starving, and its labour skills have been drained as thousands have immigrated.

Among  the reasons why Venezuela failed in this endeavour was poor planning and decision-making. Farming is a complex, labour-intensive, and often highly specialised affair. If you have ever lived on a farm you will know this. It’s not a matter of sending cows off to graze in a meadow and milk flows abundantly, or of throwing seeds on the ground and returning a few months later to reap piles of food. Profitable or sustainable farming requires day and night vigilance, careful planning, intensive monitoring, and quick action at times to save cattle and crops. It often requires enormous investment which will not see a return for years, sometimes even decades, or it develops into very unfortunate and painful losses despite best efforts put in.

But the idea people have is that land access is a quick fix. Land somehow equates to wealth. This is not true. So much depends on what land and how it is cared for. Some land is not being used because it is unsuitable for farming, and thus people incorrectly think it is going to waste. Some is protected for wildlife – which we need far more than we think (for example,where do bees come from to pollinate our crops?).

Being given land, even with buildings on it, can even become a major burden. South Africa needs to do much more than simply give away land. We must very carefully prepare, select, train, and equip the right people to farm. Otherwise it will be disastrous. Not everyone is suited to the demands of farming or similar endeavours. We have a large urban population (65%) who is not actually keen on making a living that way.

Farming can certainly bring prosperity, but for some,it feels like a curse. In the UK, for example,some people have inherited large estates which have been in the family for generations, but it becomes a massive burden. They cannot sustain it, so they abandon it. Likewise, in many cases where people have won lavish homes,they cannot pay the electricity, water and taxes on the house and it also becomes a greater burden than their previous situation. Why not just sell it then? It’s not so simple. There isn’t always a market for it, and some laws bind a family to a property. Moving to a farm also makes great demands on individual families, sometimes ending in divorce as well as child labour.

This is not to say that poor people shouldn’t be helped, including with landownership. But we must be smart about it and ensure it is not a sunken investment which leaves South Africans worse off. Start-up funding and skills are just as important, probably more so,than land ownership. It is more important that people be trained and that any endeavour be meticulously planned with the help of experts. Will this happen?

Corruption will strangle hopes of land ‘reform’

Corruption also happened in the case of Venezuela by favouring candidates for landownership who were politically aligned and had some sway over voters. This only perpetuates the exclusion of the poor and is likely to happen in South Africa too.

Venezuela was once the wealthiest nation on the South American continent. South Africa is also the wealthiest and most advanced nation in Africa. But this may not last.Land expropriation has greater negative consequences than we people want to believe. Venezuelans soon found themselves queuing for six hours a day to get food.

In the coming years, we could slip down to being one of the poorest nations in Africa, importing food at high prices, with unbearable inflation. The poor just surviving on handouts from richer nations, and a massive brain drain the like of which we have never seen before, leaving us bereft of enough people who can try to clean up the mess.This does, however, leave some politicians in a very powerful and comfy position. A poor, hungry nation depending on food rations and without skills is easily controlled. This is a long-term political strategy which has worked very well for governments in the past. This all may sound quite foreign to some. Not in South Africa, that won’t happen…

A colleague of mine out-sourced some work to a man from Kenya a while ago. When it came time to pay him, he sent an urgent email asking not to be paid yet. The bank he was with had just been seized by the government, supposedly for‘national interests’. He could not access his account and the branches were closed. His savings were out of reach including the money he put away for his children’s school fees. What could he do? The money was paid into a friend’s bank account and immediately withdrawn.A relatively small amount to try keep the family going until the next job came along.

Ifwe think we as South Africans are somehow above such things, we are far too overconfident or naïve. What is perhaps most sad about this situation is that no independent banks means that we cannot conduct international trade. Online businesses will not be able to operate in such an environment. EFT payments are impossible, let alone forex trade, and what will we revert to?Cash and cheques perhaps, or some say cryptocurrencies like Bitcoin, which are not particularly safe options. The Internet has been opening up many opportunities for the unemployed youth, and we are giving those away before they really have a chance to establish themselves.

By DevanMoonsamy –

Conscientise is a somewhat new (1960s) and tricky-to-pronounce term, but the concept is a wonderful ally in the diversity process. Some pronounce the word as con-chi-en-chise; others say con-chen-tize. The latter seems to be the most common in South Africa and is the simplest. Never mind how you say it,though, so long as you get busy with it. A basic definition is that it is to make yourself and others aware of important social and political issues.

Conscientising is ensuring everyone knows their rights and responsibilities, but it also includes those nuances and subtle understandings that are more difficult to put into a list of dos and don’ts. To illustrate what it means to be conscientised in the workplace, think of someone coming in late to work. How a manager approaches the problem should differ based on their (conscientised) understanding of the employee and their circumstances. For those who have no choice but to use public transport to get to work, particularly unreliable forms of transport, and especially on a day when there has been a strike, the response should be one of understanding and sympathy for the stress they are likely feeling. What about employees with very young children? How do they warrant special consideration at times?

A conscientisied person is aware of these types of factors and their gravity, and will generally be better equipped to handle diversity and a variety of problems. In the workplace, conscientising is part of education, training and development. It is specifically identified as a precursor to the action of challenging inequalities in treatment and opportunities. People must know the power they have to do good and correct wrongs before they can achieve the ideals of equality and a non-racist society.

Combating racism is thus about conscientising ourselves and others. Notions of race-based inferiority are combated by means of attitude adjustments, something we as individuals are responsible for. It can certainly go a long way if we strive to educate those around us in a respectful manner or sometimes speaking in more firm terms if we are faced with deep-rooted racism which is causing harm to others.

By cleansing and greatly improving our attitudes about race we will have a healthier mindset, more authentic relationships, and thus greater chances of success in our relationships in and outside the workplace.

South Africa has a very painful past, and our wounds are not going to heal quickly. Many bridges between our diverse people need to be built and maintained. We can heal as individuals and as diverse groups of people working towards common goals. Conscientising is one very powerful way to do so.

The above is adapted from Racism, Classism, Sexism, And The Other ISMs That Divide Us by Devan Moonsamy, available from the ICHAF Training Institute and all leading books stores.

The book tackles contemporary issues in the South African workplace. It is an excellent guide for managers to harnessing diversity for success and overcoming diversity-related challenges.

Devan specialises in conflict and diversity management, and regularly conducts seminars on these issues for corporates. To book a seminar with Devan, please use the contact details below.

By Devan Moonsamy – CEO The ICHAF Training Institute

There has been a lot of buzz about the ‘future of work’ recently. There is major concern over who will become redundant and how this will happen – and rightly so. Wits recently conducted a review of research on the topic and found that most authors studying the issues are in fact negative or at least quite concerned about the impact of technology on employment prospects and society in general.
People do benefit from various technologies. We have all experienced how they make our lives better in certain ways, for example, in healthcare. However, redundancy remains a major fear associated with the increased use of technology in the workplace.

In Australia and the UK, for example, checkout staff at grocers and other major retailers have almost disappeared. Instead, checkouts at stores like Target (which is much like our Edgars) and Woolworths in Australia (similar to our shop of the same name, but a different company) are self-service. Petrol pumps are also self-service. If South Africa follows suit, this spells doom for many, many workers in these industries, and the majority of them are black and those most in need of employment opportunities.
The Edcon group (which includes Edgars, CNA and Jet, among others) has about 39 000 employees, while the Shoprite group (Checkers, House and Home and others) has 147 000 employees, some of whom are in other African countries. We naturally feel afraid of the prospect of any of these people losing their jobs. We need many, many more jobs in South Africa. Fewer jobs is not a viable solution to our economic challenges, and so certain technologies can do more harm than good.

If major retailers and petrol companies decide to go the automated checkout route in South Africa, we will likely have massive protests and even boycotts. We could expect that workers themselves – as well as customers – will not take well to such a development. It is thus not surprising that retailers seem not to have made any moves towards checkout automation in South Africa.

However, we cannot help but feel that it is only a matter of time before automation takes over all kinds of jobs. Eventually, people will be laid off or, hopefully, moved into other jobs. But what jobs? And will there be enough of them? These issues need sustainable solutions.

It is easy for us to feel hopeless and apathetic in the face of such realities, but we must strive to stay focused on devising and implementing solutions which work in the South African and African context. Perhaps we might choose to resist automation in Africa in certain ways for the foreseeable future. This is not because we intend to stay behind the rest of the world. Rather we are striving to remain at the forefront in terms of social welfare and human rights. Africans have a unique situation and technology must, therefore, play a somewhat different role in our lives. We use it, but we must not let it replace us.

A key way to achieve this is for us to learn how to use new technology in our jobs. Some researchers hold that many workers need not actually be replaced by technology. Instead, they will be using it more, and so workers need to adapt. Africans must, of course, develop skills which allow them to take up new technologies in their jobs in a way that advantages them. This may start with computer literacy but goes far beyond that into using sophisticated modelling systems, coding, and physical human-machine combinations.

This may still make us feel a bit uneasy. What if this still means fewer jobs with those available reserved for the educated and skilled upper and middle classes? This is why training at all levels is critical so that workers have greater workplace readiness. To increase the number of jobs, we might want to consider a shorter working week, as has been done in the Netherlands. We could have more employees per job or company, but they each work fewer hours. With machines helping them to be more productive, this may be a viable option. Nevertheless, workers must still each be earning a living wage, even if they are working fewer hours.

The situation is highly complicated. We may contend that the creation of new and more jobs is one of the greatest challenges humanity has ever faced. Resisting automation in the short to medium term can be wise, but a poor decision in the long term. Continued skills training of workers remains the best way to prepare them for job and industry changes in future. It is the most effective way to safeguard against unemployment and redundancy. Training and development must thus be prioritised if companies and workers are to thrive in an increasingly automated and technology-reliant context.

Devan Moonsamy is author of Racism, Classism, Sexism, And The Other ISMs That Divide Us with Bronwyn J King, available from the ICHAF Training Institute.
The book tackles contemporary issues in the South African workplace, including a variety of diversity-related challenges and how these can be overcome. It is an excellent guide for managers to harnessing diversity for success.
Devan specialises in conflict and diversity management, and regularly conducts seminars on these issues for corporates. To book a seminar with Devan, please use the contact details below.
Tel: 011 262 2461 | Email: devan@ichaftraining.co.za | Website: ichaftraining.co.za