The politics of macroeconomic policy reform in South Africa.

Abstract

Macroeconomic reforms can be easily introduced by changing the interest rate, exchange rate and wages. These changes have uneven distributional consequences. So how the beneficiaries and losers are treated needs skilled political management. Politics needs to be excluded so the disadvantaged people cannot interfere. As it is implemented this centralised arbitrary approach runs into opposition . More stable reforms might be achieved by negotiation. This will also be more democratic.