You can’t use brain surgery instruments to perform a heart op
The state advocates microeconomic policy reforms to overcome a macroeconomic crisis. Here's a better way
At the 25 Years of Democracy conference, President Cyril Ramaphosa stated that his government “is not afraid of new ideas and of new ways of thinking. We want to work with you, and for you to challenge us, to bring added rigour to the work of government.”
Yet the latest State of the Nation address and the reappointment of the Reserve Bank governor indicate that the government intends to continue to pursue the current economic policy to achieve the National Development Plan (NDP) targets of doubling the size of the economy, reducing the unemployment rate to a single digit and eradicating poverty by 2030.
Our economic modelling work shows that if status quo economic policy is followed, SA is likely to achieve less than 3% average economic growth, while by 2030 unemployment and poverty rates will be 24% and 27%, respectively. That is, by 2030 SA will be almost as far away from the NDP targets as it is now...