South Africa's economic landscape is marred by corruption and infrastructure neglect, raising critical questions about the viability of a primary surplus as a developmental tool. This article delves into the structural challenges facing the nation and argues for a more substantial investment in productive economic activities.
Bleeding national revenue through theft, corruption and wanton neglect of infrastructure should not be tolerated and must be punished.
Equally, the notion that a primary surplus can play a meaningful role in the development of a nation should also be rejected, if not deserving of even harsher criticism.
South Africa’s most recent period of strong economic performance, when unemployment declined and the country achieved annual growth of around 5% for five consecutive years, occurred when it invested the equivalent of at least 25% of its GDP back into the economy each year.
Siphon-based financialisation and mineral extraction alone will not grow South Africa.
