'The Decline of the South African Economy': Review Note

Abstract

Robust and sustainable levels of economic growth are important for all societies and critical for developing countries afflicted by poverty. But the question of rapid economic growth is especially acute in transforming economies where alienated and disaffected sectors of society must enjoy at least some of the economic fruits of political change in order to develop an allegiance to the new institutions of governance. In the particular case of South Africa the need for progressively rising standards of living contingent upon long-term economic growth can hardly be disputed. Indeed, it is surely no exaggeration to claim that rising per capita real incomes remain the key to democratic consolidation and political stability in South Africa for the foreseeable future. The poor growth performance of the South African economy over the past three decades is thus cause for grave concern: It is therefore sobering to reflect that "...in real terms per capita GDP in 2000 was lower than it was in 1970" (Stuart Jones, 2002, p.t).