Publication

This policy brief looks at what South Africa can do to set itself on a path towards stable development and growth, and thereby free itself from a “middle-income trap” characterized by deep-rooted inequality, sluggish growth and an unsustainable welfare model. For this transformation to occur, however, Pretoria will have to build an inclusive economy that 1) creates productive jobs for the unemployed; 2) increases individual productivity and wages for those who are employed; and 3) focuses on sustained poverty alleviation. Additionally, the government will simultaneously have to invest in partnerships with the private sector in order to 4) create a knowledge economy; 5) close the skills gap that’s currently constraining widespread development; and 6) foster an “enabling environment” that promotes growth, investment and innovation.