A REPORT by global research firm Nomura has damned the ANC for “underperforming” since 1994‚ despite being in power in a period of improved foreign investment and the globalisation of goods and financial markets.
The recent report‚ entitled “South Africa: 20 years of progress under democracy ... but also 20 years of underperformance”‚ said that “with other policy choices the economy could have grown faster and‚ more importantly‚ created more jobs and so lower inequality”.
Released in anticipation of yesterday’s elections, the research tracked South Africa’s economy since the first democratic elections.
Nomura researcher Peter Attard Montalto said the ANC got policy right in terms of state intervention in welfare and macroeconomic policy.
“But microeconomic policy has led to the underperformance of development beyond the basics during the past 20 years. This is evident in the developments in the labour market since 2008 – the external shock was compounded through domestic policy choices and foundations in place and was ultimately a failure of micro rather than macroeconomic policy‚” he said.
Head economist at the South African Institute of Race Relations Ian Cruickshanks said South Africa did have a good story to tell and that in any economy and country‚ more could always be done.
“Over the years‚ the ANC as an organisation has been very market friendly. They have allowed a lot of development by the private sector. So when the president says this country has a good story to tell so far‚ he isn’t lying – though the good story is beginning to derail a little. Could it be better? Yes. But it can always be better.”
The report ranked the economy under the leadership of Nelson Mandela‚ Thabo Mbeki and most recently under Jacob Zuma. It said economic policy under Mandela and Mbeki had leaned towards the free market and an investor-friendly environment‚ while under Zuma it had leaned towards “tenderpreneurship and black economic empowerment”.
Cruickshanks said economic policy had changed drastically in recent years “and not for the better”. He cited the introduction of the Mineral and Petroleum Resources Development Amendment Act.
Among the most contentious of the clauses is the one that allows the state a free-carry interest of 20% of any future oil and gas finds. Another clause allows the state to increase its interest in the operations of an oil or gas project up to 100%‚ by acquiring a further entitlement of 80% at “agreed prices”.
“The problem with this bill is that it has the possibility of bringing foreign investment and development in this sector to a grinding halt‚” he said.
Cruickshanks said with the ANC leaning towards a more socialist economic agenda‚ the Democratic Alliance’s (DA’s) economic policies could be seen to be different and more market friendly.
Montalto said despite underperforming‚ the country could not be referred to as a “failed state”. He said there have been three different economy choices for the ANC since 1994 – most notably involvement and close alliance with the Cosatu‚ and labour in general. — BDLive
ANC receives poor economic report
The recent report‚ entitled “South Africa: 20 years of progress under democracy ... but also 20 years of underperformance”‚ said that “with other policy choices the economy could have grown faster and‚ more importantly‚ created more jobs and so lower inequality”.
Released in anticipation of yesterday’s elections, the research tracked South Africa’s economy since the first democratic elections.
Nomura researcher Peter Attard Montalto said the ANC got policy right in terms of state intervention in welfare and macroeconomic policy.
“But microeconomic policy has led to the underperformance of development beyond the basics during the past 20 years. This is evident in the developments in the labour market since 2008 – the external shock was compounded through domestic policy choices and foundations in place and was ultimately a failure of micro rather than macroeconomic policy‚” he said.
Head economist at the South African Institute of Race Relations Ian Cruickshanks said South Africa did have a good story to tell and that in any economy and country‚ more could always be done.
“Over the years‚ the ANC as an organisation has been very market friendly. They have allowed a lot of development by the private sector. So when the president says this country has a good story to tell so far‚ he isn’t lying – though the good story is beginning to derail a little. Could it be better? Yes. But it can always be better.”
The report ranked the economy under the leadership of Nelson Mandela‚ Thabo Mbeki and most recently under Jacob Zuma. It said economic policy under Mandela and Mbeki had leaned towards the free market and an investor-friendly environment‚ while under Zuma it had leaned towards “tenderpreneurship and black economic empowerment”.
Cruickshanks said economic policy had changed drastically in recent years “and not for the better”. He cited the introduction of the Mineral and Petroleum Resources Development Amendment Act.
Among the most contentious of the clauses is the one that allows the state a free-carry interest of 20% of any future oil and gas finds. Another clause allows the state to increase its interest in the operations of an oil or gas project up to 100%‚ by acquiring a further entitlement of 80% at “agreed prices”.
“The problem with this bill is that it has the possibility of bringing foreign investment and development in this sector to a grinding halt‚” he said.
Cruickshanks said with the ANC leaning towards a more socialist economic agenda‚ the Democratic Alliance’s (DA’s) economic policies could be seen to be different and more market friendly.
Montalto said despite underperforming‚ the country could not be referred to as a “failed state”. He said there have been three different economy choices for the ANC since 1994 – most notably involvement and close alliance with the Cosatu‚ and labour in general. — BDLive
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