The challenge of growth, employment and poverty in the South African economy since democracy: an exploratory review of selected issues

Abstract

The welfare challenges in post-apartheid South Africa are best represented by the triumvirate of poverty, income inequality and unemployment. In turn, the one generally accepted mechanism for overcoming these challenges is for an economy to realise sustained levels of high economic growth. Herein lie the essential coordinates of this article. We attempt first to describe the post-apartheid experience with economic growth and its determinants. Secondly, we describe the nature of the welfare challenges that the society faces in terms of poverty, income inequality and unemployment. Finally, and perhaps most critically, we explore the various constraints on economic growth that may be hindering the realisation of higher standards of living amongst the population.

An In-Depth Look at Economic Growth and Employment in Post-Apartheid South Africa: Analysis and Policy Implications

“…The government has carried out a series of market-friendly economic policies that have contributed to the increasing efficiency and productivity of the economy (Bhorat and Cassim, 2004). Economic policy has given overwhelming priority to financial policy instruments and objectives (exchange rates, interest rates) relative to concerns for the 'real' side variables and goals that directly affect employment and growth.…”

“…The ANC government planned to provide services that would improve the poor lives and also create employment to sustain development (Batyi, 2009). Since the birth of South Africa's democracy, the government introduced a series of policies that were aimed primarily at creating an environment conducive to growth (Bhorat and Cassim, 2004). Over the past three decades, the focus of macroeconomic policies, everywhere, has become narrower with the passage of time (Nayyar, 2011).…”

“…Although South Africa has its economic fundamentals right, growth and employment creation have been limited owing to inherent policy instability, corruption, crime, weak public institutions and weak corporate governance (Bhorat and Cassim, 2004).…”

“…It is believed that a number of factors have contributed to the positive performance of the country's economy. Bhorat and Cassim (2004) attributed that growth is dependent on a range of issues beyond macroeconomic stability, trade liberalization or labour market flexibility. Hanival and Maia (2008) describe Asian financial crisis as a major factor to have contributed the poor South African economic growth in 1998.…”

An Overview of the Constitutional Right to Food under the South African Constitution

“…South Africa experienced high levels of poverty as a result of a complex interface of causes (Bhorat and Cassim 2004). Apartheid policies that deliberately reserved skills training and employment for a racial minority have created major obstacles to accessing income productive assets for majority of black people (Cheru, 2001).…”