Latest news with #economicInequality
The Herald
3 days ago
- Business
- The Herald
Forty graduates turn conservation training into economic opportunity
Forty youths and women received certificates on Thursday in Bloemfontein for completing a community-based training programme hosted by Meals on Wheels in partnership with SANParks as part of a growing initiative to tackle youth unemployment, food insecurity and economic inequality in South Africa. The training focused on agriculture, food preservation, leather and beauty product manufacturing, supported by the government and private sector partners. It aims to equip vulnerable community members with hands-on skills to start their own businesses and build self-sufficiency. Seiso Mohai, deputy minister of agriculture, land reform and rural development, applauded the graduates for embracing an opportunity that links conservation with job creation. 'We must begin to see agriculture and biodiversity not only as tools for survival but as platforms for innovation and growth. What we are witnessing today is not just a graduation but a shift in how we build resilience in our rural communities,' said Mohai. Skumsa Nthanga, SANParks head of socioeconomic transformation and Vision 2040 project lead, told TimesLIVE that the programme's purpose is to empower communities, especially those near biodiversity-rich landscapes, to reclaim their heritage through sustainable economic activity. 'We want to see beneficiaries establish and run their own enterprises. Our national parks are in remote areas with limited job opportunities. This programme is about closing that gap,' she added. One of the graduates, Thulisa Mnqabisa from Nomathamsanqa, said she closed her beauty salon to join the training. 'I wanted to learn how to develop my own beauty products and eventually use them in my salon,' she said. Mnqabisa told TimesLIVE that she now plans to manufacture and distribute her beauty products to BnB houses and hotels. 'The knowledge I got here will help me employ others in my community. That's the dream.'
Free Malaysia Today
21-05-2025
- Business
- Free Malaysia Today
Blanket subsidies bring more harm than good, say economists
An economist believes that subsidy reform will become harder to accomplish the longer subsidies remain, as the public will begin to see them as entitlements. PETALING JAYA : While subsidies have long been positioned as a tool to help ease the burden of living costs, economists warn that the cost of keeping blanket subsidies afloat may be higher than we think. While fuel subsidies have helped cushion citizens from rising costs, they've also come with unintended consequences such as overconsumption, leakage, and a disproportionate benefit to higher-income groups. 'There is a tipping point, and we are already beyond that point,' says economist Geoffrey Williams bluntly. 'This is why implementing targeted subsidies is essential.' He said the tipping point is marked by growing inequality that usually occurs when the cost of the subsidies outweigh their intended benefits. But the challenge isn't just about how much subsidies cost, but also the damage that it costs when left unchecked. The cost of doing nothing Economist Madeline Berma argues that while subsidies are not inherently bad, the current design often benefits those who least need them. 'They're poorly targeted. The wealthier groups, not the vulnerable ones, are absorbing a big chunk of the benefits,' she says. She notes that the government has already made commendable progress in rationalising diesel subsidies and rolling out targeted initiatives such as the Budi Madani programme. According to the finance ministry, the programme has helped save approximately more than RM7 billion, with significant reduction of smuggling and leakages. Universiti Malaya's Goh Lim Thye takes it a step further, saying that blanket subsidies become liabilities and encourage wastage when reforms are delayed. 'Nearly 40% of the RON95 fuel subsidy amounting to RM8 billion benefits the wealthiest 15% of the population and foreign nationals,' he said. By 2023, fuel subsidies had ballooned beyond RM50 billion annually, more than the budget for health and infrastructure combined. That inefficiency has a ripple effect as funds that could be channeled into more productive avenues, such as digital infrastructure, or education. 'Money lost to leakages and inefficiency could have gone into healthcare, digital infrastructure, or climate resilience. It's not just inefficient, it's unfair,' Goh said. Another 'silent cost' was that of entrenchment. The longer subsidies remain universal, the harder it is to carry out reforms as 'the public begins to see them as entitlements' and the political window for reform starts to close. Williams said excessive protection through subsidies would also weaken economic vitality in the long run. 'Companies are less competitive if they are protected with subsidies, and this makes Malaysia as a whole less competitive, agile and innovative,' he says. Madeline said that without timely action, Malaysia would be at risk of missing its own fiscal targets, weakening investor confidence. 'Subsidy reform isn't just about economics. It's about national credibility and long-term resilience,' she said.
The Independent
15-05-2025
- Business
- The Independent
How the rise in remote working could have a negative impact on UK growth
The working from home boom may be failing to revitalise struggling UK regions and could even exacerbate existing inequalities, according to new research. A study by researchers from several UK universities, including Southampton, St Andrews, Birmingham, De Montfort and University of Arts London, examined post-pandemic working habits and found that the anticipated boost to areas outside the south-east has failed to materialise. While the rise of remote work initially offered a glimmer of hope for a more level playing field, the reality is proving more complicated. The research reveals that most employees now favour hybrid working models, splitting their time between home and the office. This limits the potential for significant regional shifts, as high-skilled workers remain connected to their traditional workplaces. The data highlights a stark contrast in working patterns across the UK. More than half of all workers (52 per cent) never work from home. This figure drops dramatically for high-skilled workers, with only 29 per cent never working remotely. The majority of high-skilled workers who do work from home follow hybrid patterns, further solidifying the link to their physical workplace and potentially hindering the anticipated dispersal of economic activity to other regions. This suggests that working from home, in its current form, is not driving a relocation of high-skilled jobs to areas in need of an economic boost. Instead, it may be exacerbating existing regional divides. Professor Jackie Wahba, of the University of Southampton and the ESRC Centre for Population Change, said: 'Working from home is now a normal part of working life, with the potential to change where and how people work. 'It could offer major benefits, giving both employers and workers more choice and flexibility. But to achieve this, we must tackle key obstacles to residential mobility. 'It was widely believed that working from home would let high-skilled workers move further from their employers, opening up opportunities for less wealthy areas. 'But so far, it remains most common among higher earners in a few sectors, mostly near London and other major cities.' She added: 'There is also little evidence on the net economic impact for local areas of these changes in working patterns. We need better data on who is working from home, how often, and in what roles. 'This will help policymakers give targeted support to more regions. Investing in transport links, fast broadband, schools, healthcare, green spaces, cultural venues, and affordable housing are as important as providing flexible work options in drawing and retaining skilled workers. 'Working from home isn't yet bridging the gap between regions. Policymakers, businesses, and local leaders need to act to ensure that job flexibility does not exacerbate inequality but is harnessed to support real, long-term regional growth.' The research project, co-funded by the Economic and Social Research Council (ESRC) and the Ministry of Housing, Communities and Local Government, analysed data from the UK Household Longitudinal Study and Labour Force Survey. It also involved interviews with businesses, regional governments and universities in Glasgow, Sheffield and Birmingham. They found that in these 'second-tier regional cities', the advantages of working from home were seen as wider recruitment opportunities, more efficient use of office space, and the ability to attract workers to their regions because of lower living costs. However, they also raised concerns about quieter city centres, weaker workplace culture, and the limited ability to work from home in many sectors.
