The South African Government And Legal System Economics Essay

South Africa is a state full of scenic beauty and a broad scope of zoology and vegetation. The state is characterized by a cheery clime, and with characteristics that act as major tourer attractive force installations in the African part every bit good as in the international phase. It is besides endowed with great natural resources that help hike its economic system ; and therefore, it is considered Africa ‘s most developed state. It is located to the Southern portion of the African continent with a sum of 1,221,037 km2, and 471, 443 square stat mis, with a population estimation of 49,991,300 ( 2008 ) and a population denseness of 41/km2. ( Statistics South Africa, 2010 ) South Africa bears a rich cultural diverseness with a population of about 49,991,300 people ( Census 2001 at a glimpse, 2001 ) . South Africa attained independency from the United Kingdom and became a democracy on 31st May 1961.

This research paper inclines to turn to the South African profile by concentrating on assorted countries get downing with the economic, authorities and legal system, and so continuing to Culture and faith. The construction of this research is in such a manner that it paves manner for a more pressing issue ; Trade and Its Impact on the South African economic system. In add-on, the research will explain the function played by the South African authorities in position of elating the economic position of the state and the population at big. Furthermore, it is without uncertainty of import to admit a really important point ; that South Africa had until latest, suffered from Apartheid, which even though it has been abolished by the legal systems of the state, has remained in the people ‘s construct. Recently, South Africa hosted the FIFA 2010 World Cup finals ; this was really a really large encouragement to the state ‘s economic system and the infrastructural development owing to the fact that a figure of infrastructural installations had to be put in topographic point to assistance in the hosting of the Cup finals. It is hence a pleasance to hold this research focal point on this great land in Africa, which has a Federal Reserve System that is of universe category nature.

Major Sections of Discussion

Section 1: Definition/History of Economic/ Government/ Legal Systems

The Economic System

The economic system of South Africa is Manichaean in nature ; on the one side, it rivals developed states, while on the other side it features basic substructure and poverty depicted in the hapless conditions of people ‘s life criterions. Nevertheless, South Africa ‘s economic system is developed and industrialized, but it largely contains many characteristics linked with developing states including a division of labour between informal and formal sectors, its wealth and income distribution is besides uneven. Further still, the formal sector is extremely developed having excavation activities, fabrication activities, services, and agricultural activities. ( Bureau of African Affairs, 2010 )

The Government System

South Africa is governed by a multiparty parliamentary democracy, connoting that the constitutional power is shared between Parliament and the President ( Bureau of African Affairs, June 15, 2010 ) . In add-on, the composing of Parliament features the National Assembly -which has control over measures associated with pecuniary issues- and the national Council Provinces, charged with the duty of outlining the democracy ‘s Torahs ( Bureau of African Affairs, 2010 ) . However, the National Assembly comprises of 400 members, with an exclusion of up to a lower limit of 350 members. Furthermore, the current president is Mr. Jacob Zuma, who is being deputized by Kgalema Motlanthe ; the National Assembly talker is Mr. Sisulu.

Harmonizing to the Bureau of African Affairs, sing South African, the allotment of seats in the National Assembly is based on the per centum of ballots that is received by each portion ( Bureau of African Affairs, 2010 ) . For case, in the 2009 election, 264 seats were won by the African National Congress ( ANC ) party, 67 seats were won by the Democratic Alliance ( DA ) , 30 seats were won by the Congress of the People ( COPE ) , 18 seats by IFP, and eventually the staying 21 were shared among the other smaller parties ( Bureau of African Affairs, 2010 ) .

Therefore, as noted above, the South African province, like many other provinces, is headed by the President, who is elected by National Assembly. And the responsibilities assigned to the president include “ assigning cabinet portfolios, subscribing measures into jurisprudence, and functioning as commanding officer in head of the military and works closely with the deputy president and the cabinet. ” ( Bureau of African Affairs, 2010 )

The South African Legal System

Harmonizing to the Bureau of African Affairs, sing South Africa, the cardinal authorities is besides comprised of an independent bench, which is really the cardinal authorities ‘s 3rd arm ; whereby the Constitutional Court being the highest tribunal responsible for affairs associating to the fundamental law. Furthermore, the supreme tribunal of Appeal addresses non-constitutional personal businesss ( Bureau of African Affairs, 2010 ) . Other tribunals include the High Courts, and the Magistrates Courts, that are responsible for turn toing most of the instances. Additionally, the South African Constitution addresses the Bill of Rights extensively, including the right to fair, public test that should be addressed within a sensible clip after being charged, every bit good as the right to appeal to a higher tribunal ( Bureau of African Affairs, 2010 ) . Other citizenry societal and political rights are besides guaranteed within this measure of rights.

Section 2: Culture/Religion

South Africa harmonizing to the land and Its People is “ a World in One State ” due to the series of distinguishable characteristics characterized by “ its technologically advanced metropoliss, its un-spoilt natural beauty, and the many civilizations that make up the South African state ” ( Sa Yearbook2008/09, p.1 ) . First, the state has got rich civilization explicated by the assorted people drawn from assorted parts of the universe.

The South African jurisprudence into four chief racial groupings categorized the people of South Africa until early 1991: Africans ( black ) , whites, coloreds, and Asians. Fortunately, this jurisprudence was abolished even though the construct as per these classs remains. 80 % of the population is composed of Africans broken down farther into a figure of cultural subdivisions ; Whites on the other manus make up to 9 % of the population, and they are made up of the Dutch, French, English, and Germany colonists ( Bureau of African Affairs, 2010 ) .

Consequently, South Africa exhibits a diverse civilization, with its culinary art being mostly meat-based particularly during societal assemblages or barbeques ; on the same note South Africa has turned into a major vino manufacturer with some of the trade names runing from Stellenbosch, Franschoek, Paarl, every bit good as Barrydale. ( Kissack, C, n.d. )

The bulk of the South African inkinesss inhabit rural countries characterized by hapless life conditions ; nevertheless, this status does non discourage the inkinesss from continuing their cultural traditions in malice of the consequence of Westernization on the local occupants, taking to traditional civilization diminution.

Refering linguistic communication, the urban inkinesss usually use English, Afrikaans, or native linguistic communication ; to boot, the official linguistic communications spoken in South Africa include: Afrikaans, English, isiNdebele, isiXhosa, isiZulu, Sepedi, Sesotho, Setswana, siSwati, Tshivenda, and Xitsonga ; this is harmonizing to the Bureau of African Affairs ( 2010 ) .

Harmonizing to the study from the Bureau of African Affairs, sing South Africa, the predominant spiritual religious order is Christianity ; others being the traditional Africa, Hindu, Muslim, and Jewish ( Bureau of African Affairs, 2010 ) .

Finally, refering instruction, there has been a passage from the apartheid system indicated by segregation across racial categorizations, and the quality of instruction changing vastly across these groupings, but as right identified by the Bureau of African Affairs, this facet of segregation has bee abolished by jurisprudence ( Bureau of African Affairs, 2010 ) . Fortunately, still, the instruction system is presently traveling through a restructuring procedure with a position of coming up with a non-discriminatory and nonracial system offering same criterion of instruction across racial groupings ( Bureau of African Affairs, 2010 ) .

Section 3: Major Economic Indexs


South Africa is rich in assorted resources, with abundant mineral resources, and it is considered the universe ‘s largest manufacturer and exporter of Pt ; it besides produces some gold, manganese, chrome, V, every bit good as Ti ; it besides exports a considerable sum of coal ( Bureau of African Affairs, 2010 ) . This profusion in minerals has enormously boosted the economic position of the state, increased employment, and boosted the life criterions of the people.

The chief harvests grown in South Africa include citrous fruit and deciduous fruits, maize, wheat, dairy merchandises, sugar cane, baccy, vino, and wool, cultivated utilizing modern irrigation strategies, and therefore doing South Africa a net exporter of nutrient ( Bureau of African Affairs, 2010 ) . These harvests are exported to countries like the United States of America, China, among others.

Major Industries

The chief industries in South Africa scope from mineral industries, mining industries, motor vehicle and parts industries, machinery, fabrics, chemicals, fertiliser, information engineering, railroad turn overing stock, man-made fuels industries, electronics, every bit good as other fabrication, and agro-processing industries ( Bureau of African Affairs, 2010 ) . Examples of industries in South Africa include: South African Airways ( air hoses ) ; FNB Connect ( Computer and IT ) ; Eskom ( energy ) ; SABMiller ( Food and drink ) ; Baygen ( fabricating ) ; Anglo Platinum, Anglo American plc, Harmony Gold, JFPI Corporation ( excavation ) ; Gallo Record Company ( Record labels ) ; Telkom ( telecommunication ) , among others ( Bureau of African Affairs, 2010 June 15 ) .

Macroeconomic Indexs of South Africa

South Africa is characterized by a Gross Domestic Product ( GDP ) , which as per the 2009 study, was indicated to be at $ 277 billion ( International Monetary Fund, South Africa, 2010, June 23 ) , ) . In add-on, the existent Gross Domestic Product growing rate has been estimated to be 3.1 % in 2008 ; -1.8 % in 2009 ; 3.7 % during a five-year norm ( South Africa, International Monetary Fund ) . Other macroeconomic indexs are those of: GDP per capita, which as per the 2009 estimation was $ 5,787 ; sing unemployment, during the first one-fourth of 2010 it has been estimated to be 25.2 % ; and sing the macroeconomic composing, the GDP composing as of 2009 was as follows: agribusiness and excavation, which is the primary sector is estimated to be -7 % ; industry, which is the secondary sector is estimated at – 20 % ; and the service industry comprises of -7.3 % . ( Bureau of African Affairs, 2010 )

However, harmonizing to the South African authorities web site, there has been a diminution in the degree of GDP from 3.1 % in 2008 with an Annual Growth Rate runing between 4.9 % and 5.3 % from 2004-2007. In other countries the annualized quarter-to-quarter existent GDP at market monetary values, of South Africa, contracted by -6.4 % during the first one-fourth of 2009, and -3 % during the 2nd one-fourth of 2009 ( South African Government Information, 2010, July 5 )

Another macroeconomic index is that of HDI, which stands for Human Development Index. ; this variable as of 2009 was at a medium degree with a figure of 0.684 that really puts South Africa at place 129thin the universe ( Human Development Report, p.145 ) .

Domestic Outgo: Aggregate existent gross domestic outgo experienced a diminution at an one-year rate of 14.5 % in the 2nd one-fourth of 2009, as a consequence of positive annualized growing of 2,2 % during the first one-fourth. Additionally, the existent gross domestic outgo declined due to the contraction in the existent concluding ingestion outgo by families, every bit good as slowing both in the concluding ingestion outgo by general authorities and by the existent gross fixed capital formation.

Monetary value Inflation: year-on-year rising prices consumer monetary value index minus mortgage involvement rate increased from 10.1 % ( 2008, March ) to 13.6 % in 2008, August and so calmed to 10.3 % during December 2008 ( Bureau of African Affairs, 2010 June 15 ) . Additionally, rising prices mark step increased from 8.1 % in 2009, January to 8.5 % during March of 2009. Sing headline nutrient monetary values, there was an one-year rate of addition in March 2009 was 14.9 % while in August 2008 it stood at 19.2 % ( Bureau of African Affairs, 2010, June 15 ) .

Section 4: Trade

Imports and Exports

South Africa is the universe ‘s largest exporter of Pt, with an estimated 35.4 % exports, with major merchandising spouses such comprising of China, Germany, the United States, Japan, and eventually the United Kingdom ( Bureau of African Affairs, 2010 ) . Exports, as of 2009, amounted to $ 71.9 billion comprising of minerals and metals, motor vehicle parts, and other agricultural merchandises ( Bureau of African Affairs, 2010, June 15 ) . Imports on the other manus, as per the 2009 study were indicated to number up to $ 75.7 billion, chiefly machinery, conveyance equipment, chemicals, crude oil merchandises, scientific instruments, and fabric ( Bureau of African Affairs, 2010, June 15 ) . The undermentioned study from the International Monetary Fund, give a sum-up of South African Exports and Imports from 1975 to 1998:

Trade ( expressed in one million millions of US $ ) : South Africa

Exports Imports

1975 8.719 8.226

1980 25.525 19.598

1985 16.293 11.319

1990 23.549 18.399

1995 27.860 30.555

1998 26.322 29.268

Figure 4.1: Trade: South Africa, SOURCE: International Monetary Fund. ( 1999 ) . International Financial Statistics Yearbook

International Trade spouses

South Africa has partnered with Southern Africa Customs Union ( SACU ) every bit good as the Southern African Development Community ( SADC ) , an understanding that was implemented in the twelvemonth 2000, therefore supplying duty-free intervention for 85 % of trade in 2008 ( Bureau of African Affairs, 2010 ) .

Trade policy/philosophy

South Africa ‘s trade policy is characterized by a trade government that encourages endeavors, both local and foreign to do their investings in the procedure of constructing up local capablenesss, therefore in line with the CUTS the procedure of liberalising trade government will further competition in the economic system hence doing local endeavors to better efficient ( CUTS, 2001 ) . South Africa bases its trade policies on decreasing import permutation, high duties and subsidies, anticompetitive behaviour, every bit good as extended authorities intercession in the economic system. In add-on, the authorities has engendered to cut down its function in the economic system in add-on to the publicity of private sector investing in add-on to competition ( Bureau of African Affairs, 2010 ) .

Consequently, the authorities has to a important extent reduced duties and export subsidies ; exchange controls have every bit good been loosened ; there has been a cut on the secondary revenue enhancement on corporate dividends ( Bureau of African Affairs, 2010 ) .

Foreign Direct Investment

FDI is the common abbreviation for foreign direct investing, and is considered a major stimulation to the growing of the economic system in states that are developing, particularly the African states. Foreign Direct Investment designates “ investing made to get a permanent direction involvement and geting at least 10 % of equity portion in an endeavor operating in a state other than the place state of the investor ” ( Mwilima, ,2003, p.3 ) .

FDI can either be in the signifier of “ greenfield investing ” or amalgamation and acquisition even though this depends on whether the investing is related to freshly created assets or acquisitions.FDI has been greatly embraced in the South Africa due to a figure of grounds ; ( Mwilima, 2003, p.3 ) .

First, FDI is an of import capital information beginning particularly when there is low capital base, where for, capital influxs creates a balance in the Balance of Payment ( BOP ) or addresses the shortage in the Current history ; even though sometimes this has non been the instance based on scenarios where the whole procedure has led to the overcrowding of domestic investings ( Chatterjee, 2002 ) . Second, FDI facilitates the transportation of engineering signifier the foreign states to the place state ( Mwilima, 2003, p3 ) . Third, through FDI employment creative activity takes topographic point even though in the instance of denationalization, it leads to unemployment ( Mwilima, 2003, p.3 ) . Additionally, in a particular ECOWAS study on Foreign Investment in SADC, it came out that “ FDI is non a good manner to make occupations ” ( Mwilima, 2003, p.3 ) . Fourth, FDI facilitates direction accomplishments transfer to local directors particularly when there are new workss set up by the investor, or, when the investor acquires companies, or outsources to local subcontractors. Finally, FDI increases the awaited export fight ( Mwilima, 2003, p.3 ) .

Section 5: Business/Economic Challenge

The Effect of HIV/AIDS

The research takes this dimension owing to the fact that AIDS has over the old ages had destabilizing effects on the South African economic system ; this is because it attacks people largely at their productive age group, and so offers a fatal consequence on the people it touches. Two cardinal effects result from the impact of AIDS ; labour supply, and increased costs. However, AIDS could be an external job, but the fact that it touches the local population implies that it should every bit good be looked at from the internal position.

AIDS here is looked at from an economic position, and as such, it has been perceived to hold a two really cardinal effects ; that is, consequence on labour supply ensuing from loss of immature grownups who are still in their productive phase. Another consequence relates to the increased costs ensuing from outgos on medical attention drugs and funeral disbursals ; other costs include clip loss because of unwellness, enlisting costs. Harmonizing to Bollinger and Stover, AIDS has an economic impact that “ will be felt firs by persons and their households, so ruffle outwards to houses and concerns and the macro-economy ” ( Bollinger and Stover, 1999, p.4 ) .

Solutions aimed at relieving AIDS

Despite the deteriorating consequence that AIDS has on the economic system, there still remains much that can be done so as to maintain the epidemic from declining. The first redress should be on bar of new infections through availing relevant information to the population, through instruction and communicating ; through voluntary guidance and testing ; through the publicity of rubbers and their handinesss ; better services aimed at forestalling sexually transmitted diseases ( Bollinger & A ; Stover, 1999, p.4 ) . Second, development undertakings should be designed in such a manner that they help relieve the spread of the pandemic ( Bollinger & A ; Stover, 1999, p.4 ) . Third, the impact of AIDS should be mitigated through the proviso of publically funded plans ; including place attention for HIV/AIDS victims every bit good as educational support ( Bollinger & A ; Stover, 1999, p.4 ) .

Timetable and Budget for the Solution

A batch has already been done, but a batch still remains to be done. For case there should be tight political committedness to contend the pandemic, through support. Organizations aimed at relieving AIDS should be established and the support necessary to be provided by good wishers. This can take about three months. Part of the financess acquired should be reinvested to so as to move as cautiousness against future fiscal demands.


From the aforesaid sub-sections, it has been observed that South Africa still remains the human dynamo in the universe, with strong industrial developments, good established Federal Reserve System and copiousness of resources. These resources have helped hike the South African economic system although there are still factors that derail economic advancement. At the get downing the research indicated that there are resources, and manpower that could assist to hike the economic system. However, at the concluding phases of the research, it was noted that AIDS could significantly destabilise the economic system if relevant steps are non taken up. Therefore for the economic system to boom, the go forthing criterions of the people must be improved ; security should besides for fostered ; and employment chances should be created.