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South Africa's post-apartheid two-step: social demands versus macro stability

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  • Brahima Coulibaly
  • Trevon D. Logan

Abstract

During Apartheid, there was little need for redistributional policies or to borrow for public works since the vast majority of the population was underserved. With the arrival of a representative democracy in 1994, however, South Africa faced a unique problem--providing new and improved public services for the majority of its citizens while at the same time ensuring that filling this void would not undermine macroeconomic stability. Over the past fifteen years, policy makers have achieved macrostability, but progress on social needs has been below expectations and South Africa continues to lag behind its peers. This paper reviews the progress made so far and examines the challenges ahead for the upcoming administration. Our analysis suggest an increase in skill formation as a possible solution to the policy dilemma of fulfilling the outsized social demands while maintaining macrostability.

Suggested Citation

  • Brahima Coulibaly & Trevon D. Logan, 2009. "South Africa's post-apartheid two-step: social demands versus macro stability," International Finance Discussion Papers 974, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgif:974
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    Cited by:

    1. O'Gorman, Melanie, 2010. "Racial earnings inequality in South Africa: An assessment of policy options," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 703-718, November.
    2. Poulsen, Jonas, 2013. "After Apartheid: The Effects of ANC Power," Working Paper Series 2013:17, Uppsala University, Department of Economics.
    3. Poulsen, Jonas, 2013. "After Apartheid: The Effects of ANC Power," Working Paper Series, Center for Fiscal Studies 2013:10, Uppsala University, Department of Economics.

    More about this item

    Keywords

    Public welfare - South Africa;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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