The Institute for Race Relations (IRR) has launched a new economic recovery plan for South Africa.
Dubbed the National Growth Strategy (NGS), IRR said in a press statement that it had been drafted by the policy team at the IRR to be implemented over the period 2016 to 2019 as the basis of a long-term economic recovery targeting growth levels of 7% of GDP by the end of the decade.
The plan seeks: (1) to improve capital inflows and foreign direct investment (FDI) into South Africa, in order to start raising the growth rate; (2) build and maintain essential economic and social infrastructure to stimulate growth and provide a solid foundation for further entrepreneur-driven economic expansion; (3) translate increased growth into increased employment; and (4) help the disadvantaged climb the economic ladder to increased prosperity, while sustaining current social protection.
IRR CEO Dr Frans Cronje said: “Many other growth plans have, of course, been drafted for, and by, the government. Often they are too vague, complex, and impractical. Sometimes their time frames are so long that they seem irrelevant. Others seek instant fixes and thus rely on gimmicks such as ‘wage subsidies’ and ‘industrial development zones’, which ignore the structural reasons for poor economic performance. “
The NGS avoided these pitfalls and if the bulk of the National Growth Strategy was adopted and implemented, this would stave off looming downgrades to junk status, Cronje added.
“The strategy will also have a measurable impact on investment, growth, employment and income levels within 12 months. At the same time, it will provide the foundation for sustainable growth rates of 7% of GDP within a decade,” said Cronje.
