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Abstract

Since 1994 South Africa has been unable to sustainably achieve the rates of economic growth necessary to decrease its very high level of unemployment. Inadequate growth has been exacerbated by a structural increase in the share of private non-tradables (skill-intensive) employment alongside a parallel decline in tradable (low-skill) employment. Against this backdrop the concept of “The Developmental State” has resurfaced in policy discussions. The 2009 Manifesto of the African National Congress declared a “state-led” industrial policy will lead to the transformation of the economy. However, there are significant institutional and governance constraints that need to be overcome if “state-led” industrial policy is to succeed.

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