South Africa - Economic performance and policies
Fallon, Peter | Pereira de Silva, Luiz A.
This study examines the challenge of promoting equitable and fiscally sustainable growth and evaluates alternative paths to growth using an econometric model developed by World Bank staff. The broad conclusion is that there needs to be greater complementarity between stimulating the economy through public investment and reviving private investment if South Africa is to achieve a sustainable growth. The prospects of success will be improved considerably if skills are upgraded and a reorientation towards exports is achieved, accompanied by a restructuring of public expenditure - within fiscally sustainable limits - for targeting the poor. The scenarios examined assume that political stability is achieved and that access to international capital markets improves.
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