The Economic Consequences of Crime

Dawie Roodt

INDEX

About the Author

Featured Article:

•    South Africa's Economic Environment
•    Gangster's Paradise ?
•    Funding the Fight
•    Public Financial Crime
•    Private Protection
•    Consequences

About the Author

Dawie Roodt is the chief economist of the EF Group.  He analyses the economic news-flow and its possible effects on investments and markets on a daily basis.  He regularly comments in the media, is a well known and respected figure in the South African economic environment and appears on national television often both as presenter and interviewee.  His opinion is highly regarded on social and economic matters throughout the financial community.

For nine years Dawie was an economist at the South African Reserve Bank, after which he was the economic editor of Finance Week (Finansies & Tegniek).

Daiwe is also the holder of a Masters Degree in Economics (cum laude).

The Economic Consequences of Crime

Dawie Roodt

South Africa's Economic Environment

Gangster's Paradise ?

Farm Attacks

South Africa has seen an increase in farm attacks of 24.8% from the 636 in 2005/06 to 794 in 2006/07

There has been a sharp increase in the occurence of property vandalism

Statistics show that the average farm has around 20 workers supporting roughly 5 people, therefore 100 people's economic sustenance is directly impacted by a farm attack thereby having an effec on both food security and employment security.

Funding the Fight

Public Financial Crime

"...Any material losses through criminal conduct, unauthorised, irregular, fruitless and wasteful experience..."

There was an increase in reported cases of financial miscounduct from 771 in 2005/06 by 35% to the 1042 in 2006/07

83% of the accused were found guilty - the largest amount in 5 years.

The two catagories being:

   - Fraud (59.0%)

   - Theft (13.1%)

0.8% SMS employees - 1.6% accused

The total amount comes to - R 130,615,994.82

(Source: Overview on Financial Misconduct for the 2006/2007 financial year, Public Service Commission)

Private Protection

Consequences

In South Africa:

   - The average age of a victim is 25 years old

   - The average life expectancy is 43 years old

Therefore 18 years are lost and;

Per capita consumption expenditure is used as proxy for economic impact = R 258,045 (PV)

If R 258,045 x 8925 victims (2007)

= R 2,303,051,625 is lost to the economy

(Source: CIAC Dec 2007 & Efficient Research)

Thank you very much to Mr Dawie Roodt for allowing us to publish the content, please visit the website of the efficient group: