The Challenge of South Africa to Reduce Its High Unemployment
The unemployment rate in South Africa has been in excess of 20% for many years. Various questions can be asked about policies and probable solutions to reduce unemployment. What is wrong with South African macroeconomic policies or is it rather what is wrong with economic and political coordination of policies? What is the probability of millions of South African inhabitants to rise out of poverty? Certain policies for example ASGISA have good foundations, but the main problem in South Africa is two-fold. Firstly, sustained high growth of 6% will not be achieved as long as economic principles are overshadowed by the political agenda of transformation in South Africa. Secondly, fundamental changes are needed in the South African economy and need urgent attention, but the lack of management at all levels in government to address the structural problems, handicap such changes.
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