In his comment on the benefits or otherwise of large-scale industrialisation and its relationship to GDP growth, I suggest Lorenzo Fioramonti puts the cart before the horse (Fixating on growth could subvert prospects of long-term prosperity, June 28). Surely, economic growth is led by consumption demand? In developed nations of the West, the focus of demand at the margin is for more products that are not amenable to large-scale production. These economies already have industries that satisfy the demand for vehicles, trains, machinery, power stations and such. Such industries seem to be operating at less than full capacity, which is why growth there is so limited. Developmental states have neither the practical capacity to create numerous complex large industries nor the necessary effective demand to support them. Indeed, small-scale industry is the only option. Robert StoneLinden

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.

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

Speech Bubbles

Please read our Comment Policy before commenting.