THABANI KHUMALO | Come together, right now: SA growth needs both market and state

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The failure of Thabo Mbeki’s Gear revealed that market-led development is not the solution. That’s even more true today

Former president Thabo Mbeki's Gear policy failed to facilitate the transfer of resources to the poorer part of the economy and to create the promised jobs.Since President Cyril Ramaphosa’s Sona, South Africans have been debating whether government should limit its economic growth role to creating a conducive atmosphere for private sector to thrive or to play an active role in the country’s economy to ensure poor people get basic services and employment opportunities.

It was clear that market-led development alone was unable to address the deep-rooted realities of the country’s two economies. When delivering his 2005 Sona, Mbeki dropped the concept of the country having two nations and said if social transformation were to succeed in SA, the country could not be the prisoner of neoliberal market ideology.

All the elements that led to the Arab Spring are here, present and imminent as we debate non-stop and repeat the same demand that the government play dual roles; create a conducive atmosphere for business to thrive and be an active economic player, and not referee, through a capable state machinery and effective SOEs that ensure access to basic resources and create job opportunities.

 

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I don’t he had a choice. International financial institutions warned/threatened that they would not deal SA unless it dealt with the debt. It was cruel.

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