Yusuf
Abramjee, a leading social activist based in South Africa pictured alongside,
recently published this article in which
he bemoaned the state of the economy on account of the widely-prevalent social
ill of the peddling of counterfeit goods. Abramjee indicated that South Africa
loses R100 billion (around $5,5 million) a year due to sale of these goods,
which could be used to improve basic services for the poor and vulnerable members
of our society.
The effects
of the sale of counterfeit goods are indeed far-reaching and require a targeted
and specific approach. Afro-Chic will examine the scope of the problem and its
overall impact on economies holistically as well as upon the average man on the
street who may not know that his desire for a bargain is ultimately
contributing to poverty and inequality.
First we
have to ask ourselves what problems the sale of counterfeit goods are. Abramjee
outlined the social issues but these are a knock-on effect of other underlying
catalysts. An article by Williams (2018) provides a useful summation in this
regard, citing that, loss of economic activity and revenue of a country and
worldwide, supporting the illicit market, that genuine and legitimate
employment is lost, that innovation is discouraged and that foreign investment
is lost.
Statistics
surrounding sale of counterfeit goods vary across different sources. A very
reliable source perhaps is the World Trademark Review, which drew its numbers
from the Organisation for Economic Cooperation and Development and the European
Union Intellectual Property Office and their respective reports on the matter
done in 2013 and 2016 respectively. Their statistics relate to trades made
across borders globally (as opposed to nationally, which represent higher figures
such as the R100 billion of which Abramjee describes) and the figures provided
are projections forecasted for 2022. Some of them are the following:
• Total
international trade in counterfeit goods: $991 billion
• Total
value in counterfeit and pirated goods: $1.9 trillion- $2.33 trillion
• Displacement
of legitimate economic activity: $980 billion- $1.224 trillion
• Estimated
reduction in foreign investment: $231 billion
• Total
wider economic and social costs: $155 trillion- $1.87 trillion
• Total
Employment losses: 4.2 million-5.4 billion
As is clear
from the above, urgent steps must be taken to address the issue surrounding the
sale of counterfeit goods. As pointed out by Nkateko
Mabasa (2018), it is also a cause of xenophobia in South Africa, with a
counterfeit goods operation leading to a violent uprising in 2018. Abramjee
proposes numerous solutions in the South African context. These include:
• Campaigning
and advocacy surrounding the issue
• A tip-off
line
• Proper
funding for specialised units dealing with this issue
Constant
vigilance is required to ensure that this problem is eradicated the world over.
We must all work together to ensure that we do not support those dealing in
counterfeit goods so as to ameliorate the plight of the poor. It is through
honesty and integrity and yes, the pains of paying a little extra for an item
or two, that we can ensure our economy is not subjected to the plight projected
above.
Afro Leo
agrees, "It is notable that the effect of counterfeit goods has the
attention of one of Africa's leading social activists elevating the awareness
of the problem from an esoteric one known only to those in the fields of brand
protection. As we know on this blog, the issue is Africa's single largest IP
problem. Thanks Yusuf and Afro-Chic for highlighting it in a social context"
Brought to
you by Afro-Chic
