ISAAH MHLANGA: Economic crisis results from government response to health disaster
Regulations aimed at saving lives brought a loss of income
The National Planning Commission (NPC) hosted a round-table discussion this week on the review of the economic progress towards the National Development Plan’s (NDP’s) 2030 vision, and gave recommendations for course correction. My addition to that discussion is as follows.
The economic crisis we have is not a financial crisis, or an outcome of economic misallocations or the greed of the private sector. It is an outcome of the government’s policy before the pandemic and its response to a health disaster that all countries are dealing with. This is a crucial point, because it has important implications on some of the widely debated policy decisions government has to make if we are to minimise the gap between the NDP’s vision and what we end up with after the Covid-19 pandemic...