Attention Economy


Wednesday, November 22, 2023

South Africa – The Consequences of Declining State Capacity

South Africa Economic Update, Safety First: The Economic Cost of Crime in South Africa
https://www.worldbank.org/en/country/southafrica/publication/raising-south-africa-s-afe-1123-economic-prospects-by-curbing-crime
 
GROWTH THROUGH INCLUSION IN SOUTH AFRICA
https://growthlab.hks.harvard.edu/publications/growth-through-inclusion-south-africa
It is painfully clear that South Africa is performing poorly, exacerbating problems such as inequality and exclusion. The economy’s ability to create jobs is slowing, worsening South Africa’s extreme levels of unemployment and inequality. South Africans are deeply disappointed with social progress and dislike the direction where the country seems to be heading. Despite its enviable productive capabilities, the national economy is losing international competitiveness. As the economy staggers, South Africa faces deteriorating social indicators and declining levels of public satisfaction with the status quo. After 15 years, attempts to stimulate the economy through fiscal policy and to address exclusion through social grants have failed to achieve their goals. Instead, they have sacrificed the country's investment grade, increasing the cost of capital to the whole economy, with little social progress to show for it. The underlying capabilities to achieve sustained growth by leveraging the full capability of its people, companies, assets, and knowhow remain underutilized. Three decades after the end of apartheid, the economy is defined by stagnation and exclusion, and current strategies are not achieving inclusion and empowerment in practice.