Articles for January 2022
Place matters: National prosperity depends on every region performing better
The poor national performance of the South African economy has been widely analysed, but this disguises considerable variation in economic performance between sectors and regions. Raising production in lagging provinces to the level of the best performers could boost national output and income considerably. This depends on a deeper understanding of national industry trends together with place-based dynamics.
The politics of economic change
The political settlement forged around South Africa’s transition from apartheid to democracy created the conditions for a corporate restructuring of the economy characterized by high profitability, despite low investments. This has involved power entrenchment in large incumbent businesses groups and coalitions of rentieristic interests, which have undermined effective industrial policy implementation and the development of inclusive growth-oriented coalitions. Persistent high unemployment and inequality have fuelled dissatisfaction and contestation over the core objectives of a more developmental state. Industrial policies have also been undermined by the fragmentation of the state.