Wat moet ons ekonomiese doelwitte onder die huidige omstandighede wees?

Abstract

The joint effect of enormous external political pressure on South Africa and internal racial tension has been a lack of foreign capital in spite of excellent investment opportunities. Matters are aggravated by a deep recession in South Africa, with consequent increasing unemployment, and by a high inflation rate. The situation requires a new look at economic objectives and priorities. The obvious top priority is a rapid economic growth rate, firstly to create employment opportunities for the rapidly growing population, and secondly to promote the narrowing of the wage gap between different population groups. The required growth rate, however, is regarded by many as a potential stimulus to inflation. Several factors related to inflation are analysed, and it appears that government spending correlates more closely with inflation rates than does growth rate as such. A vital factor with considerable potential for increasing the growth rate and creating new opportunities is the improvement of agricultural productivity in the homelands - with the further benefit that it would not require large capital investment and would not be inflationary.