Claire Bisseker Economics writer

The economic recovery plan agreed to by the social partners in Nedlac last week is a good-enough document which, in any normal society, would probably be sufficient to ignite confidence and economic recovery. In SA, however, it raises challenges, some of which may prove insurmountable.

Even if the document is accepted by the cabinet, society has lost faith in the state’s ability to implement policy reforms because of past inaction. Most of the key reforms have been on the table for years. With trust in the government so low, pessimism has hardened into cynicism. This means few will invest or raise their growth forecasts until the document is translated into government policy and consistent action is observed, in line with the proposed reform timetable...

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