A recent study by economist with the Free Market Foundation, Vivian Atud, reveals that, contrary to popular belief, black advancement in South Africa has been increasing since 1994. Until now, however, there has been no standard way to measure this advancement, which has led to contrary anecdotal opinion being accepted as fact. The Dependency (on government) Index has also increased, however, with serious negative implications for the South African economy.
The preliminary Black Advancement Index is constructed through analysis of eight specific components of black advancement, some of which are composites of additional quantifiable measures. Each of the eight black advancement variables is graded on a scale from 0 to 100. The eight component scores are equally weighted and averaged to get an overall black advancement score for the economy. The eight indices used in this preliminary index are: government, financial sector, education, land, professional, housing, income, and employment. There has been significant, although not equal, black advancement in all measurement variables.
Atud said: "Real advancement cannot happen without state policies that create an enabling environment which allows personal and real economic freedom in which people can realise their dreams for themselves without the government attempting to determine what those dreams should be.
On the Dependency Index, Atud's research shows that dependency on the government has increased since 1994. Said Atud: "Government is increasingly taking over the lives of citizens in areas that were traditionally the responsibility of individuals, churches and communities. Today, more than 16 million South Africans depend directly on government for one type of grant or another. This trend creates further dependency and erodes the societal value of ubuntu. Dependency costs taxpayers millions and if not checked will have a devastating impact on the South African economy.
Detailed findings and analysis are contained in the attached background documentwww.freemarketfoundation.com.
economist with the Free Market Foundation
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