1. Transformation in the Banking Sector for BankSeta by Dr Azar Jammine Director & Chief Economist Econometrix (Pty) Ltd

2. 70-8181-9393-02 Gross Domestic Product3.50.62.8 Private Consumption4.21.73.3 Fixed Investment5.1-3.14.4 Government Consumption5.23.10.9 Exports0.32.34.7 National Accounts Average Annual Growth %

19. GLOBALISATION AND ITS INEQUALITIES Ratios of top to bottom quintile by income : - 18203:1 18707:1 191311:1 196030:1 199060:1 199774:1 Shares of global economy :- Top 20%Bottom 20% GDP861 Exports821 Foreign direct investment681 World telephones 741.5 Internet users93.30.2 Paper consumption 84na World’s 200 richest people doubled net assets in 4 years to more than $1 trillion Top 3 billionaire’s wealth exceeds GNP of all lesser developed countries of 600 million 10 Countries account for 84% of R&D

20. GLOBALISATION, INFORMATION AND COMMUNICATIONS “New information and communications technologies are driving globalisation - but polarising the world into the connected and the isolated” Geography divides Education is the ticket to the network Income buys access Men and youth dominate English talks

22. BENEFITS re BEE BENEFITS: Enhancement of longer term social-political stability in South Africa Skills upgrading will address principal cause of high unemployment Scorecard approach is more balanced and emphasises community development and skills upgrade

23. CONCERNS re BEE CONCERNS: Funding of BEE initiatives too aggressively could cripple financial sector If funding to rely on PIC, could harm public sector pensions Funding of BEE could boost money supply and inflation Possible substantial capital outflows if shares sourced from foreign investors Investors not keen to be dictated to – could diminish both local and foreign investment If demands too ambitious, lack of progress in meeting their requirements could raise socio-political tensions Danger if implementation focusses too much on top-down approach, leading to enrichment of the few, but ignoring the majority Public funding will be better focussed on providing collateral for banking sector to help the poor and small business activity