Growth, Employment and Redistribution - A Macroeconomic Strategy.

This Macroeconomic Strategy is a nationwide multisectoral document aiming at rebuilding and restructuring the economy of South Africa, in keeping with the goals set in the Reconstruction and Development Programme (RDP). In the context of this integrated economic strategy, it is possible to confront the challenges of meeting basic needs, developing human resources, increasing participation in the democratic institutions of civil society, and implementing the RDP in all its facets. As South Africa approaches the next century, it envisions a fast-growing, competitive economy that creates ample employment opportunities and redistributes income and opportunities to benefit the poor. This vision includes universal access to quality health, education, and other essential services, and fostering a secure, productive environment for homes and workplaces. Sustained growth requires transforming into a competitive, outward-oriented economy, targeting a 6 percent annual growth rate and 400,000 new jobs annually by 2000. This involves accelerating non-gold exports, expanding investment, enhancing employment intensity, and boosting infrastructural development using labor-intensive techniques. Significant changes are needed in both private and public sectors, establishing a competitive platform for tradable goods, ensuring a stable investment environment, restructuring the public sector, and emphasizing regional and sectoral development. Key elements include budget reform, faster fiscal deficit reduction, maintaining a stable exchange rate, consistent anti-inflationary monetary policy, gradual relaxation of exchange controls, tariff reductions, and tax incentives for investment. Additional measures involve restructuring state assets, expanding infrastructure, introducing collective bargaining flexibility, funding necessary training, and expanding trade and investment in Southern Africa. The government is committed to stable and coordinated policies to mobilize resources, break current constraints, and propel the economy to higher growth, development, and employment, ensuring a better life for all South Africans, with confidence in the support of social partners.
In detail, the document focuses on analyzing the following (i) fiscal policy; (ii) monetary and exchange rate policy; (iii) trade, industrial and small enterprise policies; (iv) social and sectoral policies; (v) public investment and asset restructuring; (vi) employment, wages and training.