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Shifting the growth path to achieve employment intensive growth in South Africa

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  • Anthony Black
  • Heinrich Gerwel

Abstract

'Employment intensive growth' has become a centrepiece of government policy and implies that at any given level of growth, the economy needs to become more labour absorbing. State intervention (or the lack of it) is examined in two areas that are important for employment -- agriculture and manufacturing. In the case of agriculture, it is argued that declining and ineffective state support has accelerated the rationalisation of commercial agriculture and failed to regenerate agriculture in the former Bantustans. With regard to the manufacturing sector, we argue that since 1994 the government has set a multiplicity of objectives but, de facto, there has been a surprising level of continuity in the overly generous assistance for heavy, capital-intensive industry. This paper argues that the negative impact of previous 'distortions' requires much more than a levelling of the playing field via market-based reforms. Pro-employment policies have to be placed at the centre of the policy agenda.

Suggested Citation

  • Anthony Black & Heinrich Gerwel, 2014. "Shifting the growth path to achieve employment intensive growth in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 31(2), pages 241-256, March.
    • Handle: RePEc:taf:deveza:v:31:y:2014:i:2:p:241-256
    DOI: 10.1080/0376835X.2013.871198
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    Citations

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    Cited by:

    1. Dirk van Seventer, 2015. "Compilation of annual mini SAMs for South Africa 1993-2013 in current and constant prices," WIDER Working Paper Series wp-2015-138, World Institute for Development Economic Research (UNU-WIDER).
    2. Carl Friedrich Kreuser & Carol Newman, 2018. "Total Factor Productivity in South African Manufacturing Firms," South African Journal of Economics, Economic Society of South Africa, vol. 86(S1), pages 40-78, January.
    3. Carl Friedrich Kreuser & Carol Newman, 2018. "Total Factor Productivity in South African Manufacturing Firms," South African Journal of Economics, Economic Society of South Africa, vol. 86(S1), pages 40-78, January.
    4. Hajdu, Flora & Granlund, Stefan & Neves, David & Hochfeld, Tessa & Amuakwa-Mensah, Franklin & Sandström, Emil, 2020. "Cash transfers for sustainable rural livelihoods? Examining the long-term productive effects of the Child Support Grant in South Africa," World Development Perspectives, Elsevier, vol. 19(C).
    5. Dirk van Seventer, 2015. "Compilation of annual mini SAMs for South Africa 1993-2013 in current and constant prices," WIDER Working Paper Series 138, World Institute for Development Economic Research (UNU-WIDER).
    6. Baiyegunhi, L.J.S. & Majokweni, Z.P. & Ferrer, S.R.D., 2019. "Impact of outsourced agricultural extension program on smallholder farmers’ net farm income in Msinga, KwaZulu-Natal, South Africa," Technology in Society, Elsevier, vol. 57(C), pages 1-7.

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