Global Competitiveness Index 4.0
Pillar 1: Institutions 8.3%
1.01 Organized crime
1.02 Homicide rate
1.03 Terrorism incidence
1.04 Reliability of police services
B. Social capital 12.5%
1.05 Social capital
C. Checks and balances 12.5%
1.06 Budget transparency
1.07 Judicial independence
1.08 Efficiency of legal framework in challenging regulations
1.09 Freedom of the press
D. Public-sector performance 12.5%
1.10 Burden of government regulation
1.11 Efficiency of legal framework in settling disputes Enforcing contracts
E. Transparency 12.5%
1.13 Incidence of corruption
F. Property rights 12.5%
1.14 Property rights
1.15 Intellectual property protection
1.16 Quality of land administration
G. Corporate governance 12.5%
1.17 Strength of auditing and accounting standards
1.18 Conflict of interest regulation
1.19 Shareholder governance
H. Future orientation of government 12.5%
I. Government adaptability 50%
1.20 Government ensuring policy stability
1.21 Government’s responsiveness to change
1.22 Legal framework’s adaptability to digital business models
1.23 Government long-term vision
II. Commitment to sustainability 50%
1.24 Energy efficiency regulation
1.25 Renewable energy regulation
1.26 Environment-related treaties in force
Pillar 4: Macroeconomic stability 8.3%
4.02 Debt dynamics
The Chamber contributes to the strengthening of the business environment by:
1. Supporting regional sector and value chain development programmes - for firms to express their concerns about issues affecting business in their sub-sector and to steer systematic improvement to realise faster growth of the sub-sector.
2. Supporting Business retention and expansion programmes - to steer systematic improvement of their local business environment.
3. Facilitating dialogue with the public sector - towards more effective public investment, smarter service delivery, procurement efficacy and to stop doing what the private sector can do with greater efficacy.
4. Creating large-scale awareness of issues concerning business, which needs to be rectified by the public sector or other responsible parties. Various platforms are utilised including events with key stakeholders, traditional media and social media.
South Africa’s business environment is to a large extent, shaped by public sector performance. The rise and fall of key state-owned enterprises is just one example of how government institutions impact both directly and indirectly on the private sector.
Government departments are tasked with growing a sustainable and equitable economy, but a dysfunctional department can be more of a liability than a public service.
Our public institutions range from the highest decision-making bodies, including the Constitutional Court and National parliament, to the smallest municipalities and district councils. They include several institutions central to our wellbeing, both as individuals and communities. These include the South African Police Service, Public Hospitals, and the South African National Defence Force.
They also include several key ‘Chapter 9’ organisations, which underpin our hard-earned democratic order. Here the list includes the Public Protector, the South African Human Rights Commission, the Auditor-General’s Office and the Commission for Gender Equality.
Many industrial sectors are subject to oversight from government regulators, which, at least in principle, handle disputes and ensure regulatory conformity. The list of such organisations ranges from those that are rarely in the public spotlight, such as the Estate Agency Affairs Board, to others that cannot stay out of the news, like the South African Post Office.
These institutions should all be held to account by the public they serve, particularly business stakeholders whose fortunes are tied to efficient and transparent service. The Chamber intends to play an active role in public service performance appraisal as part of our mandate to grow the economy and create jobs.
Public institutions are only as good as they are effective. What good is a National Museum if there is nothing in it? And what is the point of a public power utility if it can’t keep the lights on? The need for efficient and equitable public service underscores the need to monitor key performance indicators.
Incidence and prevalence of organised crime, homicide, terrorism, property crime, and prosecution rates are just some markers of success or failure of our safety and security cluster, all of which should be monitored by civil society groups. What percentage of crime results in prosecution? How quickly are case dockets processed?
Staffing levels, remuneration, and budget spend are other key indicators that offer insight into public performance. Civil society needs to be actively involved in identifying problem areas, such as delayed policy implementation or outdated regulatory frameworks.
By fine-tuning our barometers of success, we can help improve efficiencies rather than just complaining about them.
PROCUREMENT, GOVERNANCE AND CORRUPTION
Dodgy tenders, disappearing public finances, and inadequate public oversight are a continuing drain on society and business in particular. The cost of doing business increases as public institutions crumble. Long-term economic sustainability depends upon avoiding the crippling and often insidious effects of corruption and poor governance.
The Chamber is particularly concerned about perceived loopholes in South Africa’s procurement policy that results in crucial business contracts ending up with sub-standard contractors. It is an area that requires immediate attention and active public-private engagement. Understanding the scope and scale of the problem is a vital first step, followed by lobbying and intervention. By harnessing its extensive network of expertise, across all sectors, the Chamber can draw attention to procurement failings and agitate for constructive change. The same applies to public service corruption.
The Chamber intends linking with reputable media organisations and their journalists to draw attention to the worst offenders – in the hope that they will be brought to book. Our website features regular Chamber statements on issues of the day; and by following the Chamber’s news service links our members can read – or watch – informative content.