ECONOMIC POLICY
NEVA MAKGETLA: Why too much pulling in different directions is killing SA’s growth story
‘The government needs to accept economic policy is an extended negotiation’
The Mining Charter process illustrates everything that is wrong with how the democratic government engages with business. Start with prolonged consultations, add unilateral changes just before gazetting, mix in months of open disagreement within government and end up with legal challenges and a half-hearted compromise. And we wonder why business leaders say they are drowning in a stew of rhetoric, unmet promises and changing state priorities. This kind of contestation and instability in economic policy comes up against the hard realities of a mixed economy. In SA, the government accounts for about a fifth of all production and employment. If it wants transformation, it must change business behaviour. That requires systematic, consistent and realistic changes to the ecosystem that shapes business profitability and investor decisions.The organisation of government contributes to internal contradictions. For most state functions, there is a single department. But at least 10 department...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.