Friday, February 15, 2008

Economic policy for South Africa in the balance?

Since Jacob Zuma became president of the ANC the question whether South Africa will change its economic policy direction became more pertinent. What do you think? Vote on this blog.
Here are a few snippets from the last few days:

In today's Mail & Guardian Online 'Mbeki on tightrope as left influence rises':
South Africa's left is riding high as the government prepares to unveil a budget that is expected to raise spending on social programmes and shift policy more towards fighting unemployment and poverty.Powerful trade unions and the South African Communist Party (SACP) have seen their influence within the ruling African National Congress (ANC) rise since the election of the populist Jacob Zuma as party president.

President Mbeki in the 2008 State of the Nation address:
At the macro-economic level, we will continue to maintain a fiscal posture that supports continued economic growth and development and reducing our external vulnerability.

Further to accelerate our economic growth and development we will implement the Industrial Policy Action Plan. Government will continue our industrialisation programme and continue to create opportunities for growth and employment-creation. In this regard, R2,3 billion has been budgeted for industrial policy initiatives and a further R5 billion in tax incentives over three years will support industrial policy.

In 'Political risk rising in SA - Fitch':
Zuma won the race to lead the ruling African National Party in December, making him frontrunner to succeed Thabo Mbeki as the president of Africa's biggest economy.
However the left-leaning Zuma's trade union links are causing unease among investors and businesses who fear a Zuma-led government could reverse the liberal reforms of the past decade.

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