IRR publishes first ‘Blueprint for Growth’ paper to ‘arm SA’s pro-growth forces’

Comprehensive policy solutions that chart a viable path to economic growth in South Africa are contained in the first paper of the IRR’s Blueprint for Growth series, published today.

The paper, Arming SA’s Pro-growth Forces, sets out the case for growth and the overarching policy solutions package that the Blueprint for Growth series will promote.

In a webinar on the paper, its author, IRR CEO Dr John Endres, said: “In our view, (driving) economic growth is probably the most radically transformative thing that South Africa can do to change the country’s trajectory and the outcomes, and it should be the main focus of politics.”

He pointed out that economic growth of 1.2%* since 2008 “has been anaemic and is way too low to make a dent in unemployment or boost incomes”. As a result, “South Africans are frustrated and wonder what their prospects are, with little way of improving their lives”.

South Africa’s GDP per capita was “trending downwards” in global terms, ranking at only 77% of world GDP per capita.

“We need higher growth rates to catch up, and for that, we need better policies.”

By adopting policies geared to attracting investors, stimulating – and reducing threats to – business, growing demand for jobs, and making it easier for people to get work, it would be possible to lift the growth rate to 7%.

Though “ambitious”, this was the figure “we should be aiming for”, as it would enable South Africa to double the size of its economy in 10 years. At the present growth rate, it would take 58 years for the economy to double in size, “and we would fall even further behind”.

With the right policies in place to get the economy growing, “(the) country would be unrecognisable in a decade or two and be much happier than it is now”, he said.

The published report can be accessed here.

*Erratum: An earlier version of this press release incorrectly gave this figure as 1.8%

Media Contact: Hermann Pretorius IRR Head of Strategic Communications Tel: 079 875 4290 Email: hermann@irr.org.za

Media enquiries: Michael Morris Tel: 066 302 1968 Email: michael@irr.org.za

Sinalo Thuku, Tel: 073 932 8506 Email: sinalo@irr.org.za