Creating Wealth in the New South Africa

 

This article was written several years ago:

“In considering the question of how to create wealth in a country, engineering training immediately directs us to seek precedents from which we can learn.

Consideration of those countries in the world where there are high standards of living and limited or no poverty, immediately shows that there is a single common thread, namely effective and efficient use of productive technology to gear the capabilities of the people of the country. Switzerland, Germany and Japan are examples that spring to mind. It is very evident from visits to these countries that their technology is well designed, well implemented, well maintained and well operated. Things “just work”.

So, one finds that the effective application of technology is the cornerstone of creating wealth in ANY country – it is the only proven recipe.

Random social experiments that jeopardise the reliability and sustainability of technology are fundamentally at odds with any prospect of a vibrant economy, particularly when those policies involve diverting the money that should be going to infrastructure development and maintenance to rewarding people on the basis of criteria that cannot be linked in any way to wealth creation.

Reflection on this principle immediately indicates that South Africa is going in the wrong direction as far as technology is concerned. It does not matter what technology or methodology one considers, be it roads, sewerage, water supply, electricity supply, electricity distribution, health care, education, justice, etc., in all cases once-reliable and sustainable infrastructure and capability is progressively degrading as a consequence of failed experiments such as Outcomes-Based Education, the abolition of the death penalty, lack of maintenance as in the case of roads, water supply, electricity distribution, etc.

Irrespective of where the money and manpower have gone that have resulted in this widespread degradation of technical capability and assets, it has been inappropriately applied.

If South Africa truly aspires to create sustainable wealth, we need to cease redirecting funds from infrastructure, whether it be hard infrastructure such as roads or soft infrastructure such as health care professionals, teachers, engineers, etc. More critically, we urgently need to stop driving experienced personnel at all levels of economic activity out of the country on the basis of their skin colour. Reverse apartheid coupled with a lack of recognition of the vital role of knowledge and experience in creating wealth, is rapidly crippling the capacity of South Africa to create sustainable wealth.

We stand at a watershed – can government refocus to retain and grow technical capability and infrastructure or will it persist with a policy of endowment at the expense of sustainable wealth creation? Redistribution does NOT create wealth, it redistributes wealth away from those with the proven ability to create wealth. If remuneration does not relate directly to productive input that creates more value than it consumes, then the economy will progressively degenerate. Arguably, there was indeed a need to level the playing field, but the problem now is that the playing field is no longer level: it is tipping in the opposite direction, towards national impoverishment.

Spending money on elaborate infrastructure, such as prestigious soccer stadiums, does NOT create wealth. Instead it simply creates an illusion of wealth but does not sustain productive activities which create material value that significantly exceeds the cost of inputs.

 

Engineer Against Failure

In the light of what I have written above and what follows, I would like to position myself. I am first and foremost an engineer – my passion is engineering and solutions that work. I first started designing and making things when I was about six years old and I have been doing this ever since.

I rapidly became aware that I placed strong emphasis on preventing failure, but it took me about ten years to realise that as engineers we are not trained to design bridges to stand up, we are trained to design bridges not to fall down. This is a fundamental difference in approach that I have applied to all aspects of my work.

“Engineer systems and solutions NOT to fail” is as fundamental to the design of business strategies and national policies as it is to businesses.

Until we formulate strategic business plans and national policies not to fail, we will continue to find that failure is rampant, as is evident in many areas of South African wealth-producing and maintaining economic activity today.

This worldview leads me to the conclusions presented above – as a nation we are going in the wrong direction – we are doing things that are destroying the sustainability of wealth creation wholesale, instead of doing all that is required to preserve and grow our capacity to create wealth.

As a nation, we are not talking about failure and how to prevent it, and so it is rampant, whether in the form of a blowout after hitting a pothole, a rundown hospital with doubtful hygiene, children who leave school ill equipped to compete on the global playing field (or even the local playing field) or electrical transformers silently decaying as a consequence of an invisible lack of maintenance. Just below the surface of our apparent prosperity lies a mountain of technical neglect that is destined to dramatically damage our economy in the near future.

I am passionate about success through implementing exceptionally high-value strategic concepts cost-effectively and timeously to achieve success by preventing failure. This is missing from the current South African economic and technology arena.

 

Strategy Defined

What is strategy? Strategy is the essence of why an organisation (or nation) exists and how it thrives – doing the right things as determined by the customers (or voters). Tactics is doing things right.

Our focus should be on determining the right things to do, using technology and methodology to support exceptionally high-value outcomes and then doing them right. We must prevent failure at all costs – failure is always more costly than doing it right first time, provided that there is a valid and valuable value proposition to start with. Spending millions on number plates with microchips consumes value.

If we do the right things well, the organisation or nation will thrive, if we do them not so well we will survive, but if we do the wrong things, the organisation will die and it is only a matter of how quickly. If we do the wrong things well, our organisation or nation will die fast, or else it will die slowly.

South Africa is approaching a tipping point where our failure to maintain core infrastructure and invest in core technologies and methodologies is almost certainly going to slip into the die-fast quadrant – we are getting very good at spending money in ways that do not create sustainable value, and even better at driving out experienced people and making those who remain feel unwelcome.

The implementation of strategy has a time dimension. A strategic plan is not a forecast or a goal, it is a trajectory of change, the path to success or failure. It always follows an exponential curve; this is directly comparable to the trajectory of change of direction of a motor vehicle, aircraft, ship, etc. It starts out tangential to the current direction and slowly changes direction IF the hands on the steering wheel are constant. Inconsistent steering leading to constant flip flopping in direction will prevent change from occurring, and change that takes place too rapidly will become unstable. The car will roll, the ship capsize, or the aeroplane stall.

South Africa is in a situation where it is seeking to change too much too fast and instability is now rapidly approaching. Instability in policy in various areas is also crippling the capacity to plan effectively and to execute plans that deliver lasting sustainable value and wealth creation.

In my journey of discovery into the factors that cause failure I have come to understand the critical factors.

More recently I have come to understand that the same factors cause failure of all technology investments, including electricity supply failure, failure of road maintenance, etc. and that these factors are, in fact, an indication of failure in strategic capability – the ability to visualise a future state and achieve it.

These factors are (percentages indicate relative contribution to failed projects):

a.   Technology mythology (30%). We do not need to resurface the roads, they will just keep working; we can set any policy we like and it will work, etc. There is lack of understanding, inadequate knowledge and experience, etc.

b.  Lack of executive custody and inappropriate laws and policies (20%). “This is MY country or project or law and I accept full responsibility for the outcome” = “I have abolished the death penalty and you can hold me accountable if your loved one is murdered.”

c.   Lack of strategic alignment (15%). This means lack of a clear definition of the essence of why the organisation exists and how it thrives.

d.  Lack of an engineering approach (12%). This means lack of a systematic, thorough approach designed to prevent failure and thereby achieve success.

e.  Poor information management (10%). “We do not really know how to measure the results of what we are doing and even if we have the measurements, we do not know what to do with them.”

f.   People / soft issues (8%). Here we are dealing with human adaptability versus wisdom and competence, which equates to the synthesis between relevant knowledge and relevant experience. Each person is a complex composite of knowledge and experience.

There is an exponential trajectory of value-creating knowledge and experience. It takes about 40 to 50 years from birth to form an engineer or other high-level professional who can conceptualise and execute large projects that create high-value sustainable wealth and even then very few are able to do this. It will take more than 80 years of appropriate activity to achieve demographic parity with regard to high-level engineers, medical specialists, educators, etc. in this country IF we plan and execute to prevent failure. This is not happening; we are driving out the very people who are the only ones who know how to do this and therefore the only ones able to train others.

There are three worldviews according to Marco Blankenburgh:

i.                     Guilt and innocence (right and wrong) – the North American and European culture

ii.             Honour and shame – much of Asia, the Middle East, some of South America

iii.            Power and fear – some of Africa, some of Asia, some of South America

Understanding the differences and tensions between these worldviews is vital to understanding South African politics and thereby to understanding how to prevent failure within the South African context.

g.   Technology and methodology issues (5%). Outcomes-based education (OBE) is a technology or methodology. It has failed to deliver because of the huge human-change impact associated with transforming an entire education system. It will probably take another 20 to 50 years for outcomes-based education to deliver on expectations, simply because of the magnitude of the human-change impact.

However, the worst thing South Africa could do now would be to scrap Outcomes-Based Education and start another experiment. We are locked in to OBE, now we must MAKE IT WORK!

 

Achieving success

In order to achieve success we must first prevent failure, then we must manage towards success. The critical factors for success are:

a.  Executive custody and policy (25%). Leaders at all levels MUST be held accountable. If the leaders of major US banks had faced 20 years on a chain gang for their actions, they would have conducted themselves differently.

b.  Strategic architecture (18%). There must be a clear description of the desired future state of the organisation or country that is practical and achievable and is designed not to fail.  NOT wishful thinking.

c.   Strategic alignment (16%). A clear and detailed specification of the journey is needed.

d.  Business integration and optimisation (14%). This is the aspect of how human beings integrate with the technology and methodology to create sustainable value, i.e. the management of the change process.

e.  Classic project management (12%)

f.   Information management (10%)

g.  Technology / methodology (5%). The technology or methodology is almost irrelevant until all the other issues have been dealt with. Yes, there must be reliable technology or methodology, but that in and of itself does not create value. People using technology create value.

When one reaches a point where technology is starting to become a visible issue, such as potholes in roads, power supply failures and other technical manifestations of problems, then it is time to realise that the first six factors are NOT being adequately addressed.

The ‘load shedding’ of 2007–2008 was first and foremost a failure of executive custody and no national executive ever offered to resign as a consequence of inappropriate policy decisions. The blackouts were also a failure in terms of strategic architecture, failure to have a clear view of the future state of the country and also a failure of strategic alignment: there was no clear plan of the journey towards the future state.

On the basis of this analysis, the fact that technology and methodology failure has reached epidemic proportions in every sector of the South African economy indicates that dramatic collapse is imminent.

Drastic measures are needed to alert government and business to these harsh realities and to mobilise initiatives which need to be every bit as bold as those that tore down the walls of apartheid in the years preceding the elections in 1994.

 

Conclusion

The application of these principles within a context that places appropriately high value on knowledge and experience, irrespective of skin colour, is vital if South Africa is to avoid slipping catastrophically into the abyss of technology and methodology failure that looms large before us.”

You will notice in the rest of this book that I have become more conservative since writing this article.

 

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Click here to read about the images on the Cover

Do NOT Impute Motive

From consideration of the current situation in South Africa it is very easy to infer a hidden agenda on behalf of the ANC to destroy Europeans in South Africa, however I have come to understand that this is NOT the case, refer

http://www.south-africa-the-real-issues.org/Home/DoNOTImputeMotiveANCNOhiddenagenda.aspx

The counterpoint to this is that the motive of Afrikaner Europeans was ALSO not the motive imputed to them by the ANC and the Western world

 

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One Hundred Thousand challenged to seek the Almighty Creator at the Voortrekker Monument in Pretoria on Monday 16th December 2013

This website evidences the impending utter destruction of South Africa and challenges those who can grasp the seriousness of the situation to come before the Almighty in Pretoria on Monday 16th December 2013 to cry out for deliverance -- see page http://www.south-africa-the-real-issues.org/Gathering16Dec2013.aspx

If you have NOT seen this YOU need to!

President Jacob Zuma, President of South Africa, leads the ANC Leadership and tens of thousands of ANC supporters in singing "The Cabinet will shoot the Boer with machine guns" in Bloemfontein on 8th January 2012 -- it appears that he may well have done this AGAIN on 16th December 2012

If you have NOT seen this you NEED to

This violates his Oath of Office, the Constitution, and, and, and -- it is a basis for impeachment

The agreement reached in October does NOT neutralize the culpability of the PRESIDENT doing what you will see here

This is NOT a "struggle song" -- the Cabinet during the struggle was made up of Boers -- this is a MODERN song

There is a direct correlation between this and the massive rate of white murders discussed in this book and on this site (between 68,800 and 165,000 since 1994)

There are OTHER very unpleasant unavoidable conclusions to be drawn

Note the enthusiasm of the participants and then ask yourself what conclusion you draw!

This website and the book that is available for free download here discuss this and many other unpleasant facts that point to some very unpleasant conclusions about the direction that South Africa is going

You can download the video from https://www.box.com/s/yfricz1py78hitx4aal7

or from https://docs.google.com/file/d/0BxX3T4bXCWezYjVHQzNBU3hLTWM/edit?usp=sharing

Please take some time to engage with the content

The ONLY way that Jacob Zuma and the ANC can reverse this is by a widely broadcast public apology by Zuma and his top ANC Cabinet members broadcast on all TV and Radio Channels and many newspapers and CONCRETE action to bring a halt to ending white murders -- in my mind that requires that the Death Penalty is reinstated

Visit http://www.south-africa-the-real-issues.org/Home/ZumaSings.aspx for further toxic songs and further commentary

 

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Website Contents

Please click on the topics to access the relevant page

Home

Do NOT Impute Motive -- the ANC and the Afrikaners

About the Cover

Preface

Zuma leads tens of thousands in singing about murdering whites -- an in-depth analysis of why this is so destructive

The South African Extreme white murder rate -- what is driving it? -- analyzed in-depth

What was Apartheid Really? -- an in-depth analysis of why Apartheid was NOT what it is widely believed to be

  

 Introduction

· Preamble

· Simplifying Complexity – my Analytical Approach

· Who AM I?

· What I am Feeling (same as most Europeans?)

· Evidence of Impending Collapse

· The Audience for this Book

· The Level of Murders of Europeans

· Race – The Unmentionable Fundamental that is Driving it ALL

· To my African Countrymen – WHY I am Alienated

· Why am I so UNSETTLED?

· 10 Concrete things the ANC is doing that are causing Irreversible Economic Damage

· There ARE Highly Intelligent and Highly Capable Africans – BUT…

 

The Critical Issues

·         The Critical Issues Overview

·         Mythology

                o   SA Myths Debunked

                o   What the White Man Brought to South Africa

o   The Truth about Exploitation, Oppression, etc

o   Erroneous Thinking in terms of Majority Rule

o   Affirmative Action and Black Economic Empowerment are Complete Misnomers

o   The Black Settlement Phenomenon – Total Lack of Creativity and Initiative – Social Helplessness

o   How is Prosperity Created?

o   How is Poverty Created?

o   The ANC is Founded on a Fundamentally False Premise

·         Economic Meltdown -- The Time Trajectory of Strategic Collapse

·         The ANC’s REAL Agenda?

·         Black Population Explosion

·         The Collapse of Education

·         South Africa is NO Longer a Democracy

·         Other 

 

The Intangible Factors Driving South Africa’s Collapse

·         The Dunning-Kruger Phenomenon ? Arrogant Ignorance and Other Destructive Consequences

·         Understanding Early Childhood Learning and its Impact on South Africa

·         Understanding “Power-Fear” and its Negative Consequences for South Africa

·         The African “Garden of Eden” Mindset (Money Grows on Trees)

·         Greed Versus Prudence

·         Understanding versus Rote Learning

·         Assets and People do NOT EQUAL Wealth

            o   The Land Issue

            o   Asset Obsession and things that are NOT Wealth

            o   Different Definitions of Wealth – Another Point of Difference

·         Genetics?

            o   Major Gaps in African Deductive Reasoning – Cause and Effect, etc

            o   Is the Manifest Cause and Effect Cognitive Gap Throughout Africa Evidence of a Genetic Short Coming?

·         Words – Harder than Concrete

·         The African Victim Drama and European Rescue Drama Dynamic

·         Communism – Exacerbating Power-Fear and Arrogant Ignorance

·         Witchcraft and Ancestor Worship – Central to Understanding

·         European Fundamentals that Mask the Seriousness of the Situation

                o   Attributes of Europeans and Africans Contrasted

                o   Psychodynamics of Africans and Europeans

o   European Fundamentals – Towards Understanding South Africa 2013

o   Mistakes the Europeans (especially Afrikaners) made

o   The 2%:12%:86% Wealth Creation Phenomenon amongst Europeans

o   Fundamental European Values at a Wealth Creator, Wealth Developer Leadership Level

o   What South African Europeans do Instinctively to Accommodate Africans

·         Liberalism

            o   Incorrect beliefs of Liberal, Christian Europeans

            o   Liberalism – Seriously Clouding the Issues

·         The Religious Dimension

·         Apartheid

            o   Overarching Headlines a Week after Reading the book “Bulala” by Cuan Elgin

            o   Thoughts after Reading Bulala – A True Story of South Africa by Cuan Elgin

            o   What WAS Apartheid? – REALLY?

            o   Afrikaner Racial Hostility, Distrust, Fear and Arrogance – Truth with Wrong Attitude

            o   The Afrikaner Paradox – Blessed AND Persecuted

            o   Apartheid – Afrikaner South Africa’s Public Relations Disaster 

                    o   Critical Population Statistics

                    o   White Unemployment

                    o   Afrikaner Alienation


Some Important Principles

·         Creating Wealth in the New South Africa

·         What is an Economy? – REALLY?

·         The Fundamentals of Mining

·         What is the Purpose of Government?

·         Why South Africa could NOT have Grown much more before 1980

 

Other Considerations

·         Did you know? – things that are breaking

·         An Alternative Summing up

·         Why is the Johannesburg Stock Exchange so Strong?

·         Letter to the Editor of a Professional Journal

·         Letter to the Editor of an Afrikaans Newspaper about Zuma singing Shoot the Boer

·         Why are Europeans NOT much more Energized in Defending themselves?

·         Why did the ANC only really have an impact from the late 1940’s?

·         Lessons from Dingaan and Retief ? Treachery

·         The Battle of Blood River – a Case Study in African Fundamentals

·         What IS Democracy?

·         What the British Brought

·         A Prophetic View – “The Almighty Speaks on South Africa”

 

Possible Courses of Action

-         Technically Valid Corrective Actions – Envisioning the Impossible

-         What can YOU do?

-         The basis for Europeans Withholding BEE, AA and tax and Demanding Change NOT the way to go

-         Your Options

-         Defensive Actions to Consider

 -         Get the message across

        -         Contact Newspapers around the World -- nearly              300 eMail Addresses

        -         Contact Europeans Parliamentarians

        -         Contact Diplomatic Missions 

        -         Western Cape

 

Conclusion – The Essence of my Views on South Africa

 

Fast and Pray -- Some Spiritual Considerations

 

Follow up -- Developments after completing the book

 


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