The African National Congress economic policies and the impact on economic growth.

Abstract

The year is 1994, the ANC, a previously banned South African struggle movement wins the country's first democratic elections from a government that was infamous for its policies of racial segregation and the resulting oppression for people of color in SA. In winning, the ANC moves from a liberation movement to a constitutionally elected government and with that it begins to establish its economic policy, the blueprint to the country's economic growth. Over two decades have passed since the first democratic election and with it a series of economic policies have been introduced. What has been the impact of these policies on the economic growth of the country, through the cyclic periods of economic indicators, has the promise of the Freedom Charter become a reality for the average South African or has inequality and poverty remained a norm for the majority of the population? This research interviews stakeholders from various groupings of society who have either helped in formulating economic policy, studied it or have been affected by it through their business dealings. Thematic analysis was used to analyze the data which was in turn supplemented by descriptive statistics from various sources. The data reveals a speculative outlook for the South African economy with strong contrasts in socio-economic measures; an improving living standard despite a high Gini coefficient of 66%, unemployment at 26,5% is the highest of the BRICS nations. A decreasing trend in GDP growth, its lowest at 0,7% in 2016, despite comparatively low interest rates. Government's apparent incompetence to implement policy, an elitist minority and an environment in desperate need of policy certainty and strong political leadership all points to a negative impact on the economic growth of a democratic South Africa. The solution may lie, not in formulating a strong economic policy, but in aligning policy to political, business and social interests in order to foster the will and commitment needed to drive and implement the radical policy needed to finally begin to grow an economically inclusive South African society.