Cleaning up the state alone will not lead to economic growth

Not everyone who has radical ideas is corrupt and not everyone who is corrupt pretends to be radical. However, exposing the dishonesty of those who talk like populists while filling their pockets is an unmitigated good for the country and the reform agenda: it helps rebuild institutions, weakens the president’s political enemies and could help reshape policy debate within the ANC. The relationship between a cleaner administration and potentially sound policies should not be underestimated.

Leave aside the rhetoric, and the truth is that little progress has been made in this area. Growth was slower in 2018 than 2017, no-one in the industry thinks the mining charter will result in much new investment, the jobs summit focused on issues that are marginal to the jobs crisis, there will be little new investment if property rights are uncertain and thousands of skilled South Africans are emigrating.

SA will struggle to grow quickly under present constraints but we can certainly and realistically expect to do better. To do this, we need to prime the virtuous cycle of increased investor confidence, higher levels of investment and faster growth, and then allow the process to develop momentum. This is unlikely to deliver rapid growth immediately, but if we stay the course growth could accelerate over time.

Effective reform will require bold leadership and an ability to explain to South Africans that we cannot continue as we are.

Excellent summary of where we are. ‘A new national narrative’ that finds and builds on the (admiiitedly few) positives is essential, because skills and capital migrate in the face of fear mongering. Let’s help to guide and direct not criticize. Citizens and politicians alike!

Economic growth i) need to develop our rural areas so that the goods and people can move cost effectively; ii) focus on the SUPPLY side of the economy: skilled labor (education), water supply and electricity supply iii) remove red tape and make it simpler to do business

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