SA is streets ahead of many developing economies where, the report says, businesses have to spend a considerable part of their often scarce capital on their own infrastructure. Hence many firms installed generators. As a result, small and medium-sized firms have not been able to invest significantly in plant and equipment, so expanding their businesses. The report places a great deal of emphasis on the environment. Both extreme poverty, with its lack of growth and development, and prosperity and very rapid growth can affect nature's ability to sustain people and economic growth.
Absolute poverty is associated with deforestation, soil erosion and water pollution.
Rapid industrialisation, meanwhile, can play a major role in air and water pollution, urban congestion and the degradation of the natural habitat.