What price would you put on a diamond or even gold, is certainly not the economy of an entire country. That is the case in South Africa with mining being their fuel to boost their economy. Their economy needed the boost due to political instability burying the country into the ground. Being the fuel that helped South Africa’s GDP raise by 20% it has helped this country improve so much over the years.
Political instability is one of the key factors that has and still makes South Africa so dependent on the mining industry. There is an excessive amount of poverty in South Africa due to an unemployment rate of 22.7%. The unemployment is high for several reasons, the first being racial discrepancies. In South Africa it has always been one race is superior over the other. Taking that into account when it comes to jobs a whole race would not be hired for the job just because of the color of their skin. The Second factor is the lack of education so the community does not have the knowledge to do the job. Third, is lifestyle of tribal people. The tribal people in South Africa have not adjusted to the lifestyle of people in the society. On average they hunt for food and look for materials that will be helpful; for instance, wood, clay and coal. Therefore the tribal people are in poverty because they do not use money to support themselves. That is why political instability is holding the South African economy back and making it reliant on their mining industry.
Mining in the past has helped give the South African economy a direction to follow and have a solid bases to build off of. Diamonds were first discovered in 1867 in Johannesburg by a Dutch farmer which was the beginning of South Africa’s expanding economy. 1886 the gold industry started and starting making a positive effect on the South African economy. In 1887 investments were placed into the mining industry which was the start of the economic break through for South Africa. From 1910 to 1961 South Africa improved methods for mining. In 1933 the gold industry expanded expanding the economy of South Africa. In 1970 the gold industry reached its highest point to date. It had created 68% of the world’s gold that year. The death rate due to mining decreased under 500 in 1996. In 2001, the South African mining industry produce 51% of the world’s platinum. The death rate was decreased to under 200 in 2006. In 2009 it improved the sales in South Africa by 241 billion rand. Therefore, the mining industry had expanded the economy of South Africa over time.
South Africa has expanded their economy significantly due to their mining industry. The mining industry has increased the annual income by 330 billion rand. Biggest source of employment is the mining industry. The mining industry has expanded the GDP in South Africa by 20%. The mining industry is the largest source of economic power to the black people. The mining industry has helped people come out of poverty. South Africa has become the...