oa South African Journal of Economic and Management Sciences - Globalisation, economic policy and the new dualism in the South African economy
|Article Title||Globalisation, economic policy and the new dualism in the South African economy|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Affiliations||1 Department of Economics, University of Natal, Durban|
|Publication Date||Sep 2001|
|Pages||505 - 523|
|Keyword(s)||Economic development, Economic dualism, Economic policies, Economics, F 41, Globalization, JEL, Macro-economic policies, Poverty, Poverty reduction, Rural poverty and Trade|
ISI Social Science
Economic dualism in South Africa has mutated from the original modem vs. traditional sector conception to one of poverty vs. non-poverty. Globalisation provides opportunities to reduce poverty, but government policies determine the outcome. The South African government's sound macroeconomic policies have not been matched on the micro side. The labour market has not been liberalised, employers are loath to increase staff numbers, and foreign investment in labour intensive industries is not being attracted. The policy choice is one of lower real wages and more jobs or higher real wages and fewer jobs. The unemployed and those in absolute poverty would opt for the former, unionised labour for the latter. Policy reforms will be politically difficult, but without them the dual economy will persist.
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