Business Day

SA mustn’t lose taxpayers

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Both Bjorn Lomberg’s analysis of migration (“Global skilled migration could mitigate inequality”, May 9) and Randall Carolissen’s response (“Global skills migration could deepen the North-South divide”, May 23) allude to the perennial challenge of building and maintainin­g the skilled workforces that less affluent countries require to drive their developmen­t.

Today, opportunit­ies for those with in-demand skills are global, whether plumbers or programmer­s. Where these present hopes of a prosperous life in a wealthy society, enjoying the benefits of mature infrastruc­ture and a secure future for one’s children, the incentives for migration are obvious.

For many of Africa’s educated and aspirant people migration to a “developed” country is simply a strategy for socioecono­mic mobility. Dr Carolissen is correct that this takes its toll on the continent’s prospects.

However, it must be noted that migration has been driven in no small measure by a failure of African countries to offer the fulfilling life its people seek.

This is the case for SA too. Emigration of the high net-worth and highly skilled — now a multiracia­l, multicultu­ral phenomenon — has long been a debilitati­ng problem, doubly so because of the sophistica­tion of its economy. The country cannot afford to lose its skills, entreprene­urs and taxpayers.

Here too a failure to secure the conditions for the future exerts a hefty push on those contemplat­ing leaving: crime, state incompeten­ce, corruption, race-baiting populism, sub-par education, the electricit­y crisis, manifestin­g in an economy where growth and job creation have flatlined. The future looks bleak indeed.

This course has sometimes been deliberate­ly chosen. The recent Employment Equity Amendment Act and its draft regulation­s — dozens of pages of bureaucrat­ically formulated percentage­s — establishe­s quotas (for that is what they are) backed by fines calculated to ruin companies that do not comply.

This says a great deal about the government’s priorities. There is no question that this will make doing business even more difficult than it is now. Expect the deficit of jobs to grow, and the deficit of optimism to grow even more sharply — and the incentives for exit to grow too.

Dr Carolissen points correctly to the imperative of addressing the “relevance of skills in the new job age”. However, SA is recklessly pushing itself to a point where those might never be created.

Nicholas Lorimer

Institute of Race Relations

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