n Development Finance Agenda (DEFA) - Growing and developing South Africa : using market-creating and job-creating innovations to tackle poverty, unemployment and inequality

Volume 5 Number 3-4
  • ISSN : 2413-256X


Socio-economic debate in South Africa is almost always couched in two polar opposites of Marxism and the much derided Neo-liberalism. Marxist-oriented social and economic commentators argue that the policy stance of national government and the Central Bank, as encapsulated in fiscal policies pursued by National Treasury and the inflation-targeting regime of the South African Reserve Bank, have put the country on economic trajectory of low growth, low investment, low productivity, low employment and low wages. Those with a neoclassical eye on matters socio-economic argue that it is too much intervention by a so-called developmental state that has resulted in low investor and business confidence with the consequent negative impact on investment and job creation. In this paper, I argue for a third way that is based on market-creating and job-creating innovation driven by the private sector. Neither monetary nor fiscal policy will create much needed jobs in a country with nine million unemployed people. Government must create a conducive environment in which the private sector thrives through market-creating innovations that lead to job growth.

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