Wednesday, October 30, 2013

Australia vs South Africa

Australia vs South Africa


Andre Willers
30 Oct 2013

Synopsis :
The critical divergence points are 
1. TV in 1956  (RSA 1976)  
2.Abolition of White Australia Policy 20 Oct 1973   (RSA equivalent 1994)
3. Hong Kong transfer of Sovereignty 1 July 1997    (N/A to RSA)

Discussion :
1. Discrimination in Australia , especially iro immigrants , because of race gradually relaxed ,
greatly helped along by ubiquity of TV . 
TV diminishes fear of the "other" via familiarity .
All soapies are the same .

There are about 1.4 Billion TV sets for 7 Billion people on planet now . About 1 per every 5 persons of the planet .
Ie 1 per family . 

2. The final dissolution of White Australia Policy in 1973 opened the floodgates to highly qualified Chinese
immigrants with strong work ethics . This forced "old" Australians to compete . (They still resent it)
The entire society became richer .

3. This enabled the huge capital inflows from Hong Kong in the run-up to the transfer of Hong Kong to China on 1 July 1997 .
Really large amounts , which were productively invested .
The Australian economy really took off .
Compare AUD/USD from 1990 . 
The AUD strengthened as Hong Kong capital flowed in till about 1998 , then weakened for about 10 years as consolidation and production geared up , then the combination of capital and skilled labour relentlessly increased the value of the AUD .

4.Summation :
The relative strength of AUD to ZAR says it all :

ZAR 9.39 buys AUD 1.0 . as at 30 Oct 2013 .

Australia is about 10 times richer than RSA .

This represents about 6% annual difference in growth rates over 40 years . 


Andre


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