Type | Conference Paper - 2016 Annual for Think Tanks of Emerging Economies Economic transformation and deepening structural reforms |
Title | Development of the Digital Economy as a driver for Economic Transformation/Upgrading and Structural Reform |
Author(s) | |
Publication (Day/Month/Year) | 2016 |
URL | http://www.bricsresearch.org.za/dynamic/uploads/documents/KrishChetty-DevelopmentDigitalEconomyDriverEconomicTransformation.pdf |
Abstract | Information and communication technologies (ICT) offer innovative new solutions that could empower the poor. Although, these advances have emerged in South Africa over the past decade, various challenges remain that prevent these technologies from being used fully. Poverty and inequality in the country continues to deny digital inclusion to the masses of the South African population, hence participating in the productive aspects of the knowledge economy remains elusive to many as much of the population remains in a survivalist mode. Unemployment is a major factor in South Africa which traps the population in a state of poverty. Unemployment is fueled by the country’s poor performing education sector which is plagued by a large number of school system dropouts. Less than half of all school learners complete grade 12 and less than 10% complete some form of higher education. Thus the formal skills base in the country is very low, and the majority of the population find that they are unemployable. The economy is divided unequally as the fewer and more affluent portions of the population continue to move into the higher productive jobs whilst the poorer majority, the unemployed and semi-skilled remain either unemployed or feed the low paying jobs within the economy. This cycle repeats across generations and thus the majority seldom move out of the poverty trap. |
» | South Africa - Community Survey 2016 |