Start with tourism and aim for world class
Finance Minister Pravin Gordhan recently called on South Africans to wake up and use the opportunity offered by the ratings reprieve to fix our economy.
How many South Africans understand what a ratings downgrade would have meant? It is not just “high finance” or complicated economic theory. A ratings downgrade simply means it costs more to borrow money. Just as a big increase in the mortgage rate means a problem for those with bonds on their homes, so an increase in the interest rate we pay to borrow the money needed to balance our national budget has serious consequences for the country. It affects poorer people the most.
If the government has to spend far more money just to pay interest on debt, then there is less money available for spending on education, health, housing and pensions.
The government has the major responsibility: it needs sensible policies and it must apply these, not just talk about them. But business and labour also have huge responsibilities and they must not duck the challenge and merely point fingers at the government.
Ordinary citizens must also help. They can do so by recognising that our country can shake off the pattern of mediocrity and second best that has taken hold. They must demand that this attitude changes; there is no reason why South Africa should not become a world-beater, starting with tourism.