Let’s talk about GEAR and other economic disasters
The idea that the treasury has a plan to ‘kickstart growth’ is nonsense – it is heading for the opposite
In August, the national treasury issued a discussion document “Towards an economic strategy for SA”, asking for discussion. “Exports have been identified as a key driver of economic growth” was a priceless statement in the treasury document, which means, “We agree!”
It was 15 authors of a document called “Growth, Employment and Redistribution” (GEAR) who, 23 years ago, put forward the “export-oriented strategy” that would “lay the basis for an export-led revival of the economy”.
To that end they argued for “further steps in the gradual relaxation of exchange controls” and asserted that “the general direction of economic policy is towards greater openness and competitiveness”, bravely admitting that “the economy will thus become increasingly subject to global forces”...