NEVA MAKGETLA: The infrastructure stimulus: déjà vu all over again
New projects should prioritise long-term development and not immediate effect on employment and private profits
19 November 2024 - 05:00
By now we should know that infrastructure investment, while obviously necessary, isn’t a cure-all for economic ills.
From 2005-17 the government and state-owned company investment climbed by three quarters in real terms. The subsequent decline still left it 30% higher than in the mid-2010s. Yet boosting infrastructure spending by hundreds of billions did not prevent load-shedding, port delays and water disruptions, or see a jump in employment or economic growth. ..
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