CLAIRE BISSEKER: A growth-friendly government vital to avoid future threats
As 2017 draws to a close, indicators of unemployment and poverty, which have been stuck at worrisome levels for years, are once again on the rise. This constitutes the biggest threat to SA’s future. Economic growth has been slowing since 2011 and the economy has become stuck in a low-growth rut. Much of this is the result of conflict within the ANC about what drives growth and the inability of its leaders to resist the populist streak within the organisation.
This explains SA’s policy confusion and inertia. Failing state capacity (eroded by cadre deployment and endemic corruption) has also played a role. This is why the National Development Plan never stood a chance. In fact, the chief binding constraints holding back the economy that were identified by the government in 2006 — the lack of a cost-effective logistics system, a lack of competition, the regulatory burden on small business and deficiencies in state capacity and leadership — are all as binding now, if not more so, ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
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.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.