Economics, Literature and Scepticism

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I am a PhD student in Economics. I am originally from South Africa and plan to return there after my PhD. I completed my M. Comm in Economics and my MA In Creative Writing (Poetry) at the University of Cape Town, where I worked as a lecturer before starting my PhD.

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Saturday, September 27, 2008

South Africa's Current Account

Posted by Simon Halliday | Saturday, September 27, 2008 | Category: , |

South Africa's current account is not as disease-ridden as some might argue, but some of the 'solutions' as proposed by individuals such as Zwelinzima Vavi to 'discipline' businesses are bound to do more damage than good.  This is the main thrust of this recent Vox EU article from Peter Draper and Andreas Freytag.  

They have a number of conclusions to do with liberalization of industry and improvements in infrastructure and manufactuing.  I agree that monopolies in electricity and telecommunications need to be broken down. I agree too that improved investment in manufacturing, and, moreover, diversifying the areas in which South Africans and foreigners invest in South Africa could improve South Africa's lot.  I noticed, however, that they steered clear of the political firebomb that is 'labour market reform'.  Very politick of them.  

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