The myth and the reality of expropriation
I am on board Crystal Serenity, described as one of the best luxury cruise liners in the world, in Hong Kong harbour. I am lecturing to the passengers on world affairs. After my recent trip to Taipei to speak at the East Asia Peace Forum, I returned home before flying to Manila in The Philippines and sailed to Hong Kong on the way to Singapore, via Vietnam and Cambodia. Of course, I keep up with South African developments, sometimes seeing them from a different perspective, comparing them with what happens in other countries.
Herman Mashaba, the Executive Mayor of Johannesburg, can only dream of a financial position like that of Hong Kong. The South China Morning Post reported this weekend that Hong Kong has a reserve fund equal to up to fifteen months’ expenditure and also has a budget surplus this year of HK$138 billion (R210.7 billion).
The city has immaculate streets and pavements and everything works. There is no urban blight, no vandalised and abandoned buildings, no hijacked buildings, and the city feels safe because the crime rate is extremely low. The shopping is world class but very high end and the weakness of the Rand because of the poor management of our economy becomes ever-more evident as one compares prices with those at home. Not long ago our currencies were around the same value; no more. R1.00 is now worth HKD 0.65.
Of course, the challenges of running Johannesburg are enormous and are not helped by the difficulties of finding the funds to put right the neglected, shabby city the coalition government inherited after a generation of ANC rule. I was appointed as a non-executive director of City Power a year ago and I am aware of the valiant efforts being made to bring it back to profitability, despite the billions required to restore the aged infrastructure.
For example, the new chief executive officer, with the unanimous support of his executives, quite remarkably recommended to the board that no bonuses should be paid to himself and his top executive team for this year because targets had not been met. This almost unprecedented decision is a reflection of the new spirit that the Mashaba administration has engendered.