Addressing the twin challenges of poverty and inequality – Economics Assignment
|According to the World Bank, “South Africa’s fiscal deficit and debt indicators show that the fiscal space to spend more to achieve even greater redistribution is extremely limited. Addressing the twin challenges of poverty and inequality going forward in a way consistent with fiscal sustainability will require better quality and more-efficient public services. It will also require faster and more-inclusive economic growth… to reinforce the effectiveness of fiscal policy.” (National Development Plan: The Outlook in 2016, 2016) Critically analyse the above statement, taking into account the following:|
South Africa’s economic growth and the business cycle over the last three years, will the National Development Plan (NDP) likely reach the 2030 target? What are your suggestions with respect to possibly modifying these targets? Provide clear arguments here.
According to the NDP what is the primary industry that will likely achieve growth? Assess this judgement.
Analyse the recent state of South Africa’s Fiscal and Monetary Policy.
What role do other factors play, for example drought, labour unrest, power outages, the dire financial condition of SOEs (State-Owned Enterprises) and domestic market structures in achieving the NDP’s 2030 targets?