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Submitted by manoel bittencourt on
Thanks for this piece, I would have some comments though: 1. you write "deepening economic integration ...", I think it is worth mentioning that SA is still a rather closed (society) and economy. Perhaps the initial conditions matter here. 2. you write "broad-based and inclusive growth is yet to emerge ..." How can this happen with "if on average growth has been 1.6 percent per year..." ? If there is no growth, how can that be inclusive? 3. you write "new entrants into the labour market since the mid-1990s..." If unemployment now is high because of these new entrants, where were these people before? Employed? Unemployed? 4. you write "factors holding back a growth take-off are the country's relatively low fixed investment..." This statement preceds Solow, is Harrod-Domar back? We know that technology, and not investment, is behind sustained economic growth (and all that technology captures and requires). 5. you write "FDI as a share of GDP averaged only around 1.5 percent..." What happened to the "deepening economic integration" you mentioned before? 6. I certainly agree with the claim about "lack of competition", however this is not the only problem in SA. 7. In addition, macroeconomic stability (and Stanley Fischer and William Easterly told us back in the 1990s) is a pre-condition for prosperity, but not sufficient. 8. I found the piece interesting, but it needs more economics so that we can start making sense of this society. I hope it helps, Manoel.