Debunking the myths
Nine myths about SA’s economy
Poverty, unemployment and inequality in SA, though deep-seated, can be resolved without resort to radical populist policies which are based on untruths about the economy that should be rejected
SA has long been plagued by deep-seated inefficiencies that are thwarting its growth ambitions: the rates of saving and of investment are too low; productivity growth is too slow; and what growth there is, is not labour-intensive enough. These are some of the main levers that government needs to adjust if it is to put SA on the high road to faster, more inclusive growth. But, as much as South Africans think they understand what is needed to supercharge the growth rate, debates are often riddled with misconceptions about the economy. As the years following SA’s democratic transition have rolled by and the country has continued to make no visible dent in unemployment, poverty and inequality, a sense of hopelessness has taken hold. In the absence of credible leadership and economic growth, some have started looking to radical policies for answers. But SA’s problems are too deep-seated to be solved by knee-jerk, populist means. There are no short cuts to prosperity. SA can no longer avo...