We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

In response to a Twitter post by Princeton economics professor Atif Mian showing that injections of foreign money into the Afghanistan economy failed to translate into sustainable growth there, I extrapolated that — as in the Afghan example — increasing consumption via cash transfers in SA without equal attention to productivity enhancement would not raise sustainable GDP.

Mian made the point that raising spending power in Afghanistan without an associated increase in productivity led to a spending boom that vanished as soon as the aid money dried up. A tweep pushed back at my inference. He said comparing social transfers in SA to aid transfers in Afghanistan was like comparing apples to oranges. My reply? They are both fruit...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.