Download FeesMustFall and the SA Economy

#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study venue access and outdated textbooks.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