C D E ROUND TABLE R O U N D
T A B L E
N u m b e r
s i x,
CDE Round Table is an occasional publication reflecting discussions held on key contemporary topics
Why is South Africa failing to get the growth and jobs that it needs? inappropriate government policies on labour and migration; inefficiencies in the central bureaucracy; capacity problems in the delivery of basic services; inadequate infrastructure maintenance and investment; unnecessary tensions in the governmentbusiness relationship; weaknesses in the macro-economy and South African firms’ responses to freer trade. The second half of the discussion suggested solutions to the problems that had been identified. Among these were the necessity for a smaller and more focused government agenda, deeper and better business–government relationships, a common vision for the country and strategies to combat poverty directly. This is an edited version of the day’s discussion. Key points are summarised at the end of this document.
In late 2000, the Centre for Development and Enterprise hosted a Round Table discussion to explore why South Africa is failing to achieve sustained high rates of economic growth we need to reduce unemployment and reach our development goals. Participants included CDE Board member Professor Wiseman Nkuhlu, recently appointed Economic Advisor to President Mbeki, a group of senior business and parastatal leaders, and influential economists. The discussion was frank and innovative. In the first half of the Round Table, participants analysed a number of serious obstacles to growth and job creation. These included the causes of current low investor confidence; deeper-lying obstacles to growth – in particular the difficulties associated with obtaining high-quality human capital;
‘ South Africa’s leaders have to believe that market-led
development is the only way to create a better life for all.
They must commit to market-led development, and structure
’
every government policy and signal around that choice.
C D E
R O U N D
T A B L E
1
N U M B E R
SIX
2 0 0 1
2001