Chapter Four - Intermediate Goals for a Systemic Economic Policy

Summary

“Let me now share with you some of our experience and initiatives. Recently, an international survey of 200 senior auto sector executives by consultancy firm, KPMG, found South Africa to be the fifth best investment choice by car makers globally. It placed us above Japan and Western European and North American countries but also above other emerging economies such as Indonesia, Turkey, Vietnam and Colombia. This is an example of the successes that are achieved where the state works closely in the economy with private sector partners. It is recognized by KPMG, which attributes the attractiveness of South Africa as an investment destination in automotive sector to the ‘result of the government's commitment to retain, support and grow the existing manufacturers and component suppliers operating in the country.’”

Ebrahim Patel, South African economic development minister, address at the Supplier Development Summit, March 14, 2013

It is not enough for those responsible to merely recognize and adopt employment and economic growth as final goals of economic policy; strong economic growth and a high level of employment in the economy are not brought about by decree. Although the state can produce some services directly, and even some goods, and thus contribute directly to job creation – particularly in the civil service and in programs implemented by the government (i.e., big public sector investment projects) – it is expected, in general, that most job creation and economic growth will result from the actions of economic agents outside the public sector.