‘New deal’ needed between government and business, economists say
The economists’ new deal will have to involve concessions to business, which, in return, will have to agree to limit excessive executive pay
A group of academic economists are arguing for a “new deal” over the economy between the government, business and labour to unlock the current logjam and promote investment in the productive capabilities of the country. The economists agree that such a deal is needed as part of a planned transition to a more balanced, productive economy. The call for a new deal comes in the wake of a series of high-powered indabas on investment and jobs, and of the initiative launched by President Cyril Ramaphosa to attract billions of dollars of foreign investment to SA. Ramaphosa told delegates at Business Unity SA’s (Busa) economic indaba on Tuesday that the government and business has, through the new public-private growth initiative (PPGI), identified “inhibitors” that have constricted the economy over the past nine years. The economists’ new deal will have to involve concessions to business in the form of taxes and incentives and its commitment to invest in the economy. In return, business wil...
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