EDITORIAL: Why Ramaphosa’s plan falls short
It would be hopelessly naive to think that 10 ad hoc measures will set SA on a new growth trajectory
President Cyril Ramaphosa’s economic recovery plan will provide a shot in the arm for business confidence. It contains reforms that business, economists, academics and the World Bank have been begging SA to undertake for years. Yet few believe it will allow SA to sustain rapid economic growth or turn it into a winning nation.Certainly, the plan is a positive step towards getting the economy back into first gear (from where it languishes in a deep stall) but it would be hopelessly naive to think that 10 ad hoc measures will set SA on a new growth trajectory.There is still far more that should be done. At an absolute minimum, the government must achieve certainty with regard to the availability of water and energy, licensing regimes and property rights. But apart from that, SA suffers from deep-seated structural rigidities and inefficiencies — including the legacy of bantu education and apartheid spatial planning — that manifest in low growth and high unemployment.For instance, it’s e...
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