Developmentalism and the state of skills readiness : “The case for South Africa as the next African Giant Tiger”

Abstract

At a time when the global economy is still recovering from the aftermath of the Great Financial Crisis (“GFC”), the world is forced to pause and refl ect on the global economic imbalances between the Eastern and Western economies and the implications for emerging economies. Policy makers are questioning the traditional wisdom of free markets, the role of government in facilitating the development and growth of the economy, and the extent to which government can intervene in the economy to address market failures. In this article, while many emerging markets including South Africa (“SA”) were not directly affected by the GFC, SA it did however feel the effects of the European recession through a decline in trade exports. Notwithstanding the global recession and the gloomy outlook for Europe and United States of America, the economic outlook for the rest of the African continent and BRICS economies remains strong, with many African economies set to enjoy growth rates of 7%. It is recognised in this article that even though Governments cannot create wealth, they nevertheless can play a key role in the process of economic development. Economic growth represents an essential prerequisite for political stability in SA. However, efforts aimed at stimulating growth rates can be hampered by a lack of administrative capacity. The lack of administrative capacity can also impose a dominate constraint on policy making in contemporary SA. This article fi nally argues that a vibrant interventionist policy approach by governments will be the right step and balance to address the issues of a developmental state and those of skills acquisition.