GDP data: The real question is how South Africa will recover from the recession
South Africa will take much longer to recover from the current economic recession because of a host of ANC induced problems. The Q2 GDP figures clearly indicate that South Africa is firmly in the grips of the global economic downturn, but the long term prognosis for South Africa under ANC economic policy is a cause for concern - we will take longer to recover because of our structural problems.
These problems are not due to the economic cycle, but entirely to a misguided ANC economic policy, and if not corrected, they will persist beyond the economic recovery and dampen optimal economic growth. In order to address these problems, the following needs to happen:
- South Africa's labour market needs to be liberalised in order to encourage employment creation
- SOEs that waste taxpayers' money need to be taken to task
- Handouts to industries that costs billions of rand each year -- without fostering sustainable sectors -- need to be halted
- Corruption throughout government spheres, which is drastically limiting the provision of basic service delivery, needs to be tackled and austerity measures need to be actually implemented
- SETAs need to be scrapped and an apprenticeship system needs to be reestablished
It is true that we are facing an international economic downturn, but the economic problems in South Africa far precedes sub-prime. And the problems will continue to hamper our economic wellbeing as long as the ANC pursues an erratic, contradictory and counterproductive economic policy under the guise of the so called "developmental state".
Statement issued by Dion George, MP, Democratic Alliance shadow minister of finance, August 18 2009
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