In 1998 the US state of California partially deregulated electricity production and sales. The "partially" bit is where things came ungummed.
The private companies that purchased the right to sell electricity to Californians were constrained in a very unusual way. Their retail price was capped at 6.7 US cents per kilowatt hour, but – should any shortfall arise – they would have to purchase additional electricity at whatever price was demanded. Since this period coincided with tremendous US economic growth, electricity was scarce and prices for bulk electricity reached upwards of 50 US cents per kilowatt hour.
By mid-2000 the companies had accumulated debt of $ 20 billion and were struggling to maintain power levels. Between May 2000 and September 2001 a series of large electricity black-outs devastated the region.
Traditionally, chiefs and kings are only replaced after death. In many cultures, they are replaced by a family member, a sibling, relative or child. This culture appears to have rubbed into many African leaders who, against the wishes of their "subjects," hold onto power; often to the detriment of the nation. What makes one hold onto power? Is it the idea of having the fortune of an entire nation in their hands, or is it about personal enrichment?
Independence in Zimbabwe came at a high cost. Many lost their lives and homes. Parents never saw their children and many grew up as orphans. One man emerged from the war a hero.
Robert Mugabe, loved by his people and an envy to many leaders still under colonial oppression. He came with a lot of promise, leading the breadbasket of southern Africa, and on many occasions leading the SADC on politics. Twenty-eight years on, the man has become his people's worst enemy. The economy is virtually non-existent and poverty levels are high.
The entire private hospital sector, including Netcare, Life and Medi-Clinic, is worth about R 63 billion a year. Yet this large number is only 4.6% of the total South African economy.
State spending, as a proportion of total economic income, is 34.2%. If anyone has control over the economy and over the services that people receive it is the state. So, in the two most important sectors of state spending – health and education - how has the public sector performed?
R 62.6 billion was budgeted for healthcare in 2007. The state has 100,147 hospital beds compared to the private sector's 27,443. The Department of Health reports 101 million patient contacts in 2007, which implies around 25 patients per professional per day. No wonder doctors and nurses are exhausted and public health infrastructure is imploding under the strain, and 31% of posts are said to be vacant.
The state has spent R 105.5 billion on education for 12 million learners in 2007; around R 8,800 per learner. And this is before the contributions required from parents to complement the subsidy. According to PSSA (Private Schools South Africa) the majority of the 2,000 private schools charge less than R 8,000 per year.
In return for our tax, only 15.1% of matriculants at public schools gained a university pass in 2007, in comparison to the 78.4% at private schools. State expenditure on education is not only more expensive than that of the private sector, but is also of a significantly lower quality. The state would achieve far more if it simply offered appropriate education vouchers to parents and allowed them to cash them in at their favourite private schools.
