Wednesday, 7 July 2010

South Africa's trial by World Cup, by Gideon Rachman in the FT;
"While China has bent over backwards to attract foreign investors, South Africa has adopted investment laws that impose heavy costs on investors in the name of 'black economic empowerment'. That seems to have enriched a small group of well-connected black insiders, while discouraging job creation for the poor."

An interesting comparison made by Mr Rachman.

The Raven does wonder whether Australia's "Miners Tax" which cost Kevid Rudd his job could be translated to SA, if anything the case is easier to make politically. SA stocks are priced generally to include a big chunk of political risk offsetting the potential for growth, so its not clear even if such a measure was taken how much it would knock prices.

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