South Africa
Strayer University
SOC 300: Sociology of Developing Countries
Professor T. Taylor
August 31, 2015

South Africa South Africa is located at the southern tip of Africa. It is made up of a unique demographic, and is approximately twice the size of Texas (Cia.gov, 2015). The death rate in South Africa is the highest of any country (Cia.gov, 2015). AIDS is very prevalent, with South Africa having the fourth highest rate of any country in the world (Cia.gov, 2015). Economic growth is slow, and unemployment is around 25% (Cia.gov, 2015). While the economy of South Africa is experiencing slow growth, they still use the benefits of funding from banking institutions. It is important to understand whether funding from these banking institutions, as well as the general health of the population, affects the economy and politics of the country of South Africa. The World Bank and IMF have the potential to positively impact the economy in South Africa. According to Olawale and Garwe (2010), it is essential that more small and medium enterprises (SME’s) are started in South Africa. They posit this idea due to the high unemployment rate plaguing South Africa. While the World Bank is in full support of more SME’s being opened in South Africa, South Africans fear corruption will prevent them from beginning new SME’s. On the other hand, one could draw the conclusion that loans from the World Bank and IMF are allowing the corrupt South African government to continue thriving. By funding the South African government in anyway, they help support a government that the local people find corrupt (Mattes, 2008). In this way, the World Bank and IMF are also decreasing South Africa’s ability to grow more quickly economically, and to reduce their incredibly high unemployment rates. The health of South Africans is also very low. 19% of South Africans have AIDS, 26% of adults are obese, 8.7% of children under five are underweight (Cia.gov, 2015). There are only .78 physicians for every 1000 people, and 2.8 hospital beds per 1000 people (Cia.gov, 2015). Health expenditures make up 8.9% of GDP (Cia.gov, 2015). The International Finance Corporation (IFC) is pulling various institutions together to create a $1 billion fund to improve the health care in Sub-Saharan Africa (Ifc.org, 2015). Some of these funds are being applied in South Africa. While they are receiving some funds from the IFC, South Africa is concentrating on redistributing its use of its current health care funds. They are trying to create a national insurance which would bridge the gap between the public and private sector in South Africa (Who.int, 2015). Despite the fact that South Africa has the largest economy in the entire continent, 25% of its population live on one dollar or less each day (Our Africa, 2015). The unemployment rates and health of the poorer sector of South Africa directly affect each other. Many are too sick to work, and others are getting sicker because they cannot work and therefore cannot afford proper care. The South African government is beginning to implement changes that will help those in poverty move up economically. A grant called the Basic Income Grant (BIG) has been proposed as a way to pull people out of poverty. Those in poverty would be given a small amount of money, allowing them to receive better healthcare, feed their families, and even begin an SME (Poverties.org, 2015). This small amount could help change the cycle of poverty and improve the South African economy by a reduction in unemployment. If policies were introduced to increase the health of the poorest in the nation, there would be a major change in the strength of the economy. The first change would be an increase in SME’s. This would increase the GDP of South Africa. This would also help with the second change that would strengthen the economy. Between a healthier population and more job opportunities, the high unemployment rate would be reduced. More people employed would strengthen the economy. A healthier population would also reduce the instances of AIDS. A reduction in AIDS would reduce the need for so much to be spent on health care costs. The final way in which a healthier population would improve the South African economy would be by increasing educational opportunities for the poor. A higher education would give poor residents more opportunities and create a generational change. South Africa has its share of economic and health issues. It’s slow economic growth is indicative of a need to make changes, since the country has a lot of economic opportunities. Despite help from the World Bank, the government is still viewed as corrupt. The rate of AIDS is extremely high, as is the rate of unemployment. Although many potential changes have been recommended, the South African government has been slow to make changes that would positively affect the economy. A change in the health of the poorer residents of South Africa could mean a huge change in the economic opportunities for South Africa. Should the South African government choose to make substantial changes to positively affect the poor in its nation, then they could reasonably expect a reduction in unemployment and an increase if GDP.

References
Cia.gov,. (2015). The World Factbook. Retrieved 31 August 2015, from https://www.cia.gov/library/publications/the-world-factbook/geos/sf.html
Ifc.org,. (2015). IFC Backs Africa Health Care Fund. Retrieved 31 August 2015, from http://www.ifc.org/wps/wcm/connect/region__ext_content/regions/sub- saharan+africa/news/health_equity_fund
Mattes, R. (2008). South Africans' participation in local politics and government. Transformation: Critical Perspectives On Southern Africa, 66(1), 117-141. doi:10.1353/trn.0.0011
Olawale, F., & Garwe, D. (2010). Obstacles to the growth of new SMEs in South Africa: A principal component analysis approach. African Journal Of Business Management, 4(5), 729-738.
Our Africa,. (2015). Poverty & Healthcare. Retrieved 31 August 2015, from http://www.our-africa.org/south-africa/poverty-healthcare
Poverties.org,. (2015). Poverty in South Africa - Taming Globalization and Inequalities. Retrieved 31 August 2015, from http://www.poverties.org/poverty-in-south- africa.html
Who.int,. (2015). WHO | Bridging the gap in South Africa. Retrieved 31 August 2015, from http://www.who.int/bulletin/volumes/88/11/10-021110/en/