Panel 1: Macroeconomic Constraints on Growth and Employment – The Role of the State

P1.1 Macroeconomic Fundamentals and Global Growth

Dr Thabi Leoka, Independent Economist

Summary: Shrinkage of the tradable sectors –manufacturing, mining and agriculture - is suggested to be the cause of high unemployment and low growth rates. Through a comparison of South Africa and Malaysia, this commentary explores the various structural problems that underpin this challenge and proposes several recommendations. Recommendations include rethinking the education system so that basic education equips learners with skills related to starting and running a business and adopting an export-orientated strategy that increases the profitability of producing tradables for world markets.

"Economic growth is positive for job creation, but equally important for job creation is that economic growth must increase the productive capacity of sectors that have the potential to absorb labour at a large scale. "

- Dr Thabi Leoka, Independent Economist

"Economic growth is positive for job creation, but equally important for job creation is that economic growth must increase the productive capacity of sectors that have the potential to absorb labour at a large scale. "

- Dr Thabi Leoka, Independent Economist

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P1.2 A Pro-employment Macroeconomic Policy Framework in Africa

Dr Gilad Isaacs, Institute for Economic Justice

Summary: To achieve decent and inclusive employmentgrowth, this commentary argues that a pro-employment macroeconomic framework isneeded. Exploring what this looks like in an African and South Africa context,the writer suggests that a pro-employment macroeconomic policy frameworkprovides a coherent lens across policy dimensions and decisions.

"Put simply, we should use macroeconomic policy to 1) increase demand in the economy, 2) without unduly increasing imports, and 3) expand domestic supply in the economy."

- Dr Gilad Isaacs, Institute for Economic Justice

"Put simply, we should use macroeconomic policy to 1) increase demand in the economy, 2) without unduly increasing imports, and 3) expand domestic supply in the economy."

- Dr Gilad Isaacs, Institute for Economic Justice

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