Although one agrees with author and analyst, Moeletsi Mbeki that “the destruction of the manufacturing sector is at the root of the growing impoverishment of South Africans, leading, as it does, to increasing structural unemployment”.  However, one cannot ignore the fact that shortage of skilled human capital and the over-supply of traditional labour, (that is, working force in elementary jobs, mining and other labour-intensive sectors) in an increasingly modernizing South African economy, is also at the centre of labour recession in this country - which in turn, contributes to the growing impoverishment of the South African population. Â

The disequilibrium in labour supply and demand in the country’s economy is also characterized by the uncontrollable migration of both skilled and unskilled human capital from the rest of the region to South Africa. The afore-mentioned challenges are a cause for concern, especially in these trying times of global economic meltdown. It seems then, South Africa and southern Africa generally, need to seriously consider developmental regionalism as a way of curbing labour recession and poverty in the region, whilst fostering globalization.  Â

Developmental regionalism is a compromise between protectionism and liberalism, since it is simultaneously concerned with internal economic development and integration as well as strategic integration of regional trading blocs into the world economy. The main objective of developmental regionalism in relation to internal economies is to foster industrialisation and accelerate economic and social development of member countries.

Nonetheless, the highly global integrated sectors such as trade in services - banking, information technologies and communications, should remain informed by liberalism and active in the global market. Further backing this stance is the notion that, though there is a declining pool of jobs in manufacturing and mining, the increase of employment opportunities in services sectors is matched by a critical skills shortage in South Africa. Â

Interestingly, the skilled human force that is employed in the services sector is from across the region. For example, Zimbabwean professionals are highly visible in the financial sectors of the South African economy. This means the brain-drain from the rest of the region to South Africa should be seen in a positive light. However, unskilled work-force from southern Africa competes with the locals for a declining pool of jobs. It seems then South Africa, as the economic and political hegemon in the region, has to serve as the focal point in the co-ordination of rules, regulations and policies that need to shape developmental regionalism in southern Africa.Â

While developmental regionalism has the potential to foster industrialization and strengthen manufacturing as a source of socio-economic development in the region, there is also a need, on part of South Africa, to focus on developing a skilled human capital that would meet the needs of the modern economy. It would seem then that both the destruction of manufacturing and the oversupply of unskilled human capital are a source of impoverishment.

(Dr Zoleka Ndayi is the lecturer in International Relations at University of the Witswatersrand, Johannesburg)