intec college

Question 2 In approximately 120 to 130 words, write a precis of the following passage. Do not include all the statistics regarding rankings. Merely summarise what these indicate. GROWTH IS EASY, MAINTAINING IT IS NOT. South Africa has the potential to grow at more than 9% a year with proper management of natural resources and the exchange rate, and massive investments in education and infrastructure. This was according to Michael Spence, professor emeritus at Stanford University and winner of the Nobel Prize for economics in 2001. However Spence, who was speaking on the sidelines of the World Economic Forum (WEF) yesterday, which he attended in his role as chair of the World Bank-led Commission of Growth and Development, warned that while it was not too difficult to get growth up to these higher levels, it was very difficult to keep it there. Even at 7%, which is the growth rate needed to double incomes in a decade, 'the speed of creating jobs and moving resources around puts stresses and strains on the system,' Spence said. Evidence of this could be found in the fact that 'not many countries were able to get up to 7% and stay there.' It as also borne out by the South African experience, where even growth of about 5% has led to a chronic skills shortage and has run far ahead of the roll-out of rail, road, communications and electricity infrastructure. According to the WEF's Africa competitiveness index, released on Wednesday, the shortage of skills and overstretched infrastructure had helped to drag South Africa down the rankings in 2007. South Africa was ranked 46th out of 128 countries measured by the WEF. In 2005 it was ranked 40th out of 117 countries measured. The higher education and training overall ranking fell from 47th to 57th. For tertiary education enrolment, which stands at 15%, South Africa was placed in 88th position. Unreliable electricity supply and low telecommunications penetration saw South Africa drop from 35th place to 50th for infrastructure. Spence said :'You need a growing export sector that provides a range of goods to the global economy and that employs people.' Business Report, Friday, June 15 2007 (320 words) (20]