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#FeesMustFall and the SA Economy Thousands of reports centred on the #FeesMustFall protests this year, what led to them, and its lasting effects. Newsclip’s analysis team found that when it comes to the South African economy, there were other forces at play at the time. Analysis by Newsclip Written and compiled by Renato Venter Focal Point #feesmustfall and the south african economy Renato Venter Newsclip Media Monitoring Tel (011) 288 6600 Focal Point Introduction 2015 Strike Timeline The 2015 #feesmustfall protests have come about through the rejection of the proposed increase for university fees in 2016. The protests gained momentum after a 10.5% increase was proposed at The University of Witwatersrand (Wits). • January – Wits difficulties with NSFAS, launch of #TRANSFORMWITS • March - #RHODESMUSTFALL launched with the intent to end institutionalized racism • April - #OPENSTELLENBOSCH came about from the use of Afrikaans as the language of instruction • May – Unisa (CPT) had grievances relating to the race of invigilators, study venue access and outdated textbooks. • July – Durban University of Technology students had issues with the race of department heads • August – Rhodes University has protests lead by the Black Student Movement • September – Protests at Stellenbosch’s University, North-West University and University of KZN. • October - #FEESMUSTFALL begins The protest has seen responses from 14 universities within South Africa. Campuses which have received particular attention by the media are the University of the Witwatersrand (Wits) and the University of Cape Town (UCT). Protests are nothing new within South Africa. Coupled with strikes, these issues have gained near monthly media coverage. The problem that comes from such coverage is that it reflects South Africa in a negative light. The perception around strikes and protests evoke violence, and chaos. The following report aims to reflect upon the influence of the media coverage in regards to the economic impact of the protest. The report will make reference to the Rand/Dollar exchange rate, before, during and after the protest, as well as media data acquired through keyword logic. Word Cloud for #feesmustfall In analysing the media obtained, the effects of the protests on the South African economy will be scrutinised. It is the intent of the report to give valuable insights on trends occurring in the media and how South Africa compares with other BRICS countries education/economic standards. Through establishing a link between the economy and media coverage, the report can then provide insight as to how the media can negatively contribute to steering foreign investment away from South Africa. Focal Point Media Coverage of #feesmustfall Quotes to Consider... • “The student protests have rattled investors, with the Rand slipping 4.3% against the Dollar since the start of last week, the most of 16 major currencies monitored by Bloomberg” The use of keyword logic has allowed for print, online and broadcast data, relating both to the student protests and economic problems, to be separated and prepared for analysis. Clip Count Breakdown During the period observed, economic issues within #feesmustfall saw most coverage across online articles, and the least coverage from television and radio broadcasts. Media Coverage • • The graph below illustrates that during the period of 14th October 2015 until 5th November 2015, media coverage had peaked between the 22nd and 23rd of October 2015. The data also shows a sharp decline following the 23rd of October 2015, with a steady increase of coverage surrounding #feesmustfall. – Franz Wild & Amogelang Mbatha (Fin24.com) “We need coordinated action, the issues are very important. Access to higher education is a huge problem.” – Dr Sizwe Mabizela Coverage The table below, illustrates that coverage through print, broadcast and online services showed a clear prevalence for online media with the #feesmustfall protests. Online coverage contained the highest amount of articles relating to #feesmustfall. The digital content most likely gains momentum due to the emphasis of hashtags (#) and the mobility of information for students. Online news provides a sense of real-time information, which is both immediate and readily available for students. The engagement on online platforms also allows for the development of globalization as information is now available in higher volumes and quicker speeds (*Fourie 2010: 362). Media Coverage of Economic issues in #feesmustfall (14 October 2015 – 05 November 2015) *Fourie, P.J. (2010) Media Studies, Vol. 1: Media history, media and society, Cape Town: Juta Focal Point The Rand/Dollar Exchange Rate Jacob Zuma on the Economy The graph below shows the rand/dollar exchange rate from 05 October 2015 – 05 November 2015. Upon closer inspection, the dollar gains significant dominance over the rand from the beginning of the protest. When comparing this graph with the clip counts graph, one can see that the correlation between a weakened rand and more media exposure run at a similar pace. “Our currency is in a sense being attacked by the global situation and we are trying to handle it from that angle. South Africa remains a destination for investment. I think we have everything it takes for investors to come here, and their investments are secured.” The problem that comes from the failing Rand is outlined by the Minister of Finance, Nhlanhla Nene, in stating that without economic growth, revenue cannot increase and therefore expenditure cannot increase. The above statement provides inquiry to the fact that although students are being heard, their voices may be resonating too loud. The idea of rioting students gives South Africa a chaotic image. The image is further amplified as students are seen as educated and able to think through their actions – as opposed to acting without reason. Solly Moeng, corporate reputation columnist, has also been observed as stating that South Africa requires more foreign direct investment in order to boost the economic growth. He further outlines that trust needs to be established internally before we can gain the trust of outside investment. “You can’t have a flourishing budget when the economy is in trouble,” Zuma said. “We need to have projects that generate employment even under the very distressed situation, but we can no longer say as we put these, we will indeed achieve them as we thought.” Should we just Blame the Protests for a Weakened Rand? Economist, Dawie Roodt, has addressed Fin24 in stating that while the student protests have affected the economy, there are other reasons surrounding the poor performance of the rand. Roodt, has explained there are multiple reasons relating to the downfall of the rand in Minister of Finance, Nhlanhla Nene’s “mini budget”. Mike Schüssler, of Economists.co.za, has attributed the budget problems stemming from: an income deficit of R7.6bn, a lack of expenditure cutting and still no funding for students. Focal Point University Registration Fees in South Africa BRICS, Brazil and Free Education The graph below, from eNCA.com, shows the current registration fees for universities in South Africa. The University of Cape Town has the highest rate with a cost of R24 000.00 to be paid before students commence lectures. The cheapest fees are that of the University of Limpopo and the University of Johannesburg. The rates for UNISA are per module and must therefore be taken into account based on how many subjects a student chooses to enroll for. The idea of free university education has been a highly debated topic within South Africa, but where do we stand with other BRIC (Brazil, Russia, India and China) countries? In Brazil, public university education is free for all citizens, yet, the free education comes at a cost. Entrance exams are highly competitive and aimed at students who come from middle and upper class households. While such students may be able to pay for private university education, the public education system is regarded as being far superior. China’s university costs are reported to not be high (in western terms), while Russia has faced university increases in 2007/2008. India has varying university costs as their government operates under laws which state that accredited government education can only operate as nonprofit organisations. Source: enca.com Focal Point International Solidarity The #feesmustfall campaign has garnered international attention. Universities and individuals have spoken out and taken to social media to show their support for the protests. The most prominent countries to stand by the students include: • • • • • • • • London Germany Australia United States of America Israel Canada China Cameroon Positive Reactions The positive aspect to come out of the protest action has been of the international solidarity. The social bonds formed through social media and persons across the globe has allowed for stronger connections and for protestors to be reassured that the message they are seeking to get through has stemmed further than their original reach. The idea of a global reach brings forward a new paradigm of online space existing as an environment for social expression and communication whereby ideas are exchanged and reinforced. *Wilson and Peterson (2002: 456) have explained that online communities are replacing traditional ideas of communal spaces and places of interaction. Wilson, S. M., & Leighton C. Peterson. (2002). The Anthropology of Online Communities. Annual Review of Anthropology, 31, 449–467. Focal Point The idea of free higher education can allow for more growth opportunities in South Africa. If free university funding is available, South Africa can stand proud amongst other BRICS countries. The 0% increase to fees has left South Africa with a R3bn shortfall in their budget. Although strategies can be implemented to source the funding, 0% increases seem to be a short-lived victory for students. With the information of how protests affect the economy, strategies can begin to be developed to help soften the blow of economic setbacks. Continued protests could present South Africa in a negative light and lead foreign investors to other developing countries. Focal Point