Question

The Republic of South Africa is considered by some in the media as a “developed” country, thus possessing economic traits similar to those found in Europe, North America, and portions of East Asia. What attributes does South Africa possess that would make it a “developed” nation? On the other hand, why do most observers consider South Africa a “middle-income” country, similar economically to both Mexico and Brazil? Does South Africa’s recent history matter, along with the country’s relative location in the world? Explain.

Answer 1

A 2015 report of world bank deemed south Africa as an "upper-middle income country". It is the largest Economy In the African continent. South Africa happens to be one of the largest producer as well as exporter of gold , platinum , and other natural resources. South Africa has well defined infrastructure when it comes to the financial, legal, communication, energy and transport facility and connectivity. The country's prospect made its way to be get included into the Brics group ( a group consisting of the most promising economies in the future ; Brazil, Russia , India , China and now South Africa ) . One mustn't be ignorant of South Africa 's freedom struggle under the colonial powers as an important aspect for it's growth and development . Not just in terms of physical infrastructure but it's development of human capital as well. Leaders like Gandhi to Nelson mandela has shaped the country's social and political map . Starting from the days of apartheid to the days of freedom struggle and unifying the nation irrespective of color and Creed is an important example not just for south south itself but for the rest of the world. It all contributes to it's diversity , inclusivity growth . . South Africa has diverse economy in terms of sectors . Manufacturing , trade (mostly whole sale, Retail, catering, and accomodations), and most importantly the financial sector , reasl estate and business services , contribute roughly around 50% to the country's economy that gets reflected of it's GDp. Which is why South Africa often gets refered to as a developed nation . Having robust formal sectors is usually an important indicator for a country's growth . South Africa's GDP since the last 3 years has seen an upward rise and it's per capita income $15k and GDP per capita 2018 remains $6.5k