This is according to Prof Danie Meyer, lecturer and researcher at the North-West University’s (NWU’s) Faculty of Economic and Management Sciences in Vanderbijlpark. It is his view that through the implementation of a radical economic turn-around plan – and by adhering to global good practices – the South African economy can be steered towards positive economic growth.
He continues to argue that economic development and inclusive growth can only be achieved by means of radical structural change. He proposes the following six-step strategy as a possible turn-around intervention:
- Step 1
The implementation of good governance principles with a clear focus on political stability, including a pro-active drive to decrease corruption, the support and further development of effective institutions, privatization or at least effectively run State Owned Enterprises (SOE’s), and a disbandment of cadre deployment. The current four spheres of government also need re-evaluation and improved coordination. Where different political structures exist at a provincial and local level, coordination seems difficult or even impossible. It is therefore proposed that only two spheres of government should remain, namely national and local government. This will also simplify coordination.
- Step 2
Clear and implementable economic policy based on a national development plan. Economic development requires coordination through a nation-wide acceptable policy supported by all role-players. This economic policy also needs to be detached from economic sectors such as agriculture, mining and tourism.
- Step 3
Economic development through inclusive growth is acquired by means of macro-economic stability including inflation, the currency and interest rates.
- Step 4
The creation of jobs remain a massive challenge and change is needed in significantly relaxed labour regulations, improved public works projects implemented by the private sector, the extension of the youth job subsidy programme, the promotion of internships for students, and a community development conscription programme for youths to allow for skills development and public works initiatives. In this regard the social-welfare grant system needs to be relooked to allow the principles of work for income, skills development and conditional grants through cash coupons, instead of hand-outs which do not lift people out of poverty.
- Step 5
A comprehensive and integrated renovation of the education system with a focus on technical skills and entrepreneurship development. In addition, the roll-out of affordable access to the internet for all – but especially the youth, is required. Data costs are too expensive at the moment which leads to the exclusion of a large majority of South Africans.
- Step 6
The development of small businesses and the expansion of the informal job sector. It is proposed that municipalities, through a partnership with corporate businesses and local business chambers, be allocated funding to assist small businesses with mentorship as well as start-up and growth funding.
