South Africa’s Potential

South Africa is a country that has the economic potential to growth at 5-to 7% as some of the other leading emerging counties has achieved. According to the World Completive index is South Africa the best in infrastructure by far in Africa, the highest GDP per head which is $11 000 at purchasing parity and the list goes on. That said, since 1994 South Africa growth rate has been about 3.2%, far below the expected rate which has been set and this situation is reflected in the economic league table. This is mainly due to rigidity of its labour market, its shortage of skills, and the educational system and above all, for the perception that corruption is becoming endemic. This disappointment has been reflected in the countless diagnostic and socio-economic programmes designed to boost economic performance and transformation since 1994, this include programs such as the GEAR program (1996) the Growth and Development Summit (2003) and the list goes on. The question need to be raise whether it is a political problem or economic problem that South Africa is facing with over the years, which prevent them to reach these long term economic goals. I think South Africa’s government is not a very successful reformer, who is unable to steer and implement policy changes to fruition despite from economic actors, interest groups and political forces whose interest may be threatened by it. This is mainly as a result of the underlying structural problem South Africa’s government experiencing and its infective networking procedure. As a result inefficient and unattainable institutional failure where a common phenomenon is South Africa’s government, institutions such as BEE and Affirmative Action favour political empowerment and devastate other growth institutions. This failure to perform at the top level will eventually spill over adequately to different sectors in the economy, such infrastructure development and the efficient operations in the private sector. In the end the government has a chance to rectify this problem at the annual meeting in Mangaung in December, because the government has reached a gross road after 18 years of provision. This New Development Plan need to implemented no matter what the circumstances’ are and that policy decisions have to be based on how things are, not on how we fondly imagine to be make it a possibility to reach these long term economic goals by 2030.

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