The challenge of growth, employment and poverty in the South African economy since democracy: an exploratory review of selected issues

Abstract

The welfare challenges in post‐apartheid South Africa are best represented by the triumvirate of poverty, income inequality and unemployment. In turn, the one generally accepted mechanism for overcoming these challenges is for an economy to realise sustained levels of high economic growth. Herein lie the essential coordinates of this article. We attempt first to describe the post‐apartheid experience with economic growth and its determinants. Secondly, we describe the nature of the welfare challenges that the society faces in terms of poverty, income inequality and unemployment. Finally, and perhaps most critically, we explore the various constraints on economic growth that may be hindering the realisation of higher standards of living amongst the population.

Notes

Lucas's model implies that unexpectedly high realisations of aggregate demand lead to both higher output and higher‐than‐expected prices (see Romer, 2001).

Additional information

Notes on contributors

Rashad Cassim