The ideology is that this government and this country are very friendly to business, right? But - and here comes the but - the exports of South Africa with regard to industrial output are much lower than the countries I mentioned. So, the ease of doing business is high, but the consequences are low.
Secondly, Wits University reported in Business Day on 10 August 2010 that in 2007, R450 billion of South African wealth went abroad. This is the private sector. It is not the state that sends the money overseas.
Thirdly, Business Day of 19 August 2010 reported that in 2008, South Africa imported R5 billion worth of machine tools. Now, if you say to me that the private sector is the sole solution or even the main solution, I'm afraid I have to disillusion you because a few months ago Prof Ha-Joon Chang of Cambridge University - he is a South Korean and an expert on the East Asian tigers - came to Parliament - right here - and gave a talk in the Old Assembly. I can do no better than to summarise what he had to say.
The advice he gave us is that we need a fundamental transformation of the productive sector of South Africa - Ipap. Exactly! He didn't know about Ipap. But he said "fundamental transformation of the productive sector", which, of course, includes the private sector.
Then, he said that the enormous success of East Asia was due to the following: one, aggressive state intervention; two, the directing of investment to particular sectors in which the state also helps to direct; and three, trade protection, subsidies, regulation and state ownership. Those were the policies which brought unprecedented growth to South Korea, Japan, Taiwan, Malaysia, etc.
So you see, the private sector ... [Interjections.] Yes, of course, we are all for the private sector. By the way, in the portfolio committee hearings, the private sector didn't talk the language of the DA and Cope. On the contrary, they were totally in favour of Ipap and they were totally in favour of strong state intervention because without strong state intervention, the private sector does not push the way it should.
Between 1950 and 1980, South Korea experienced 6% growth over the whole period. The result was that income doubled every 12 years. The result of that - listen carefully - was that in 1961, per capita income in South Korea was $80 per head.