The politics of South Africa"s macro-economic policy : a critical study of growth, employment and redistribution strategy (GEAR) 1996-2010

Abstract

This study interrogated the politics of South Africa’s macro-economic policy. It done this by briefly analyzing the RDP and GEAR at length. The purpose was to identify the flaws in its conception and philosophy in order to modify it to make it more people friendly enthused with social democratic ideals. This is because it was hypothesized that if GEAR and the philosophy underpinning it were humane, poverty would have been significantly reduced. Moreover, the objective of this study was to highlight major macro-economic policy trends so as to suggest a macro-economic policy that will respond to the needs of all the people, particularly the poor. The macro-economic policies of the DA, COPE and COSATU were analysed to this end. Moreover, the NGP which replaced GEAR in November 2010 was also analysed, and it was found that they don’t differ ideologically. Both qualitative and quantitative research methodologies were used to collect data. It was found that while GEAR succeeded in stabilizing the economy, it to achieve its employment, social equality and economic growth target. This study then recommended for a macro-economic policy which will intertwine private enterprise government intervention and planning to realize fair competition, maintaining a balance between high growth rate, low inflation and unemployment, together with the nationalization of the means of production. These proposals will yield equality, economic growth and higher job creation.