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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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