If implemented, land expropriation without compensation will have a drastic effect on the economy, with lower capital formation, a deep recession and rising budget deficits and debt levels, two academics have predicted. The macroeconomic impact assessment of the policy of land expropriation without compensation — undertaken by University of Pretoria Gordon Institute of Business Science (Gibs) academic Roelof Botha and University of Johannesburg Professor Ilse Botha — was submitted to parliament’s joint constitutional review committee. The two say that their study is “a robust, factual and objective” economic impact assessment of expropriation without compensation, but do not clarify their assumptions on what the policy will actually mean in SA nor how it will be implemented except to refer to “an institutionalised system where private property ownership is not guaranteed and protected by law”. The authors implicitly acknowledge the need for a pragmatic and “sensible” land reform pro...

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