The Economic Impact of Policies Proposed by The Congress of South African Trade Unions

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This essay will discuss and compare the implemented and proposed fiscal policies by the South African Government with those proposed by trade unions. It will specifically focus on the policies proposed by the Congress of South African Trade Unions (COSATU) and the South African Government. The essay will further analyse the impacts of these policies based on their affordability, impact on economic growth, unemployment and whether they will support economic inclusion.

A trade union is an establishment of workers who have collaborated to achieve common goals in the workforce and economy. The aims of COSATU are: to fight for employees’ rights through social and economic justice for all employees; to understand the economy, how it affects employees and devising alternative policies on the structure of the economy to benefit all those employed; to seek just living standards, fair working conditions for all those employed and social security. (Congress Of South African Trade Unions, 2006)

On February 24, 2014, the South African Minister of Finance, Pravin Gordhan delivered the 2014 Budget Speech, in which it is highlighted that South Africa’s economic growth is targeted at 5 percent per annum. It is further highlighted that the government’s plan to achieve this target is through public investment, a tax incentive to encourage youth employment, improve the quality of education and further investment in renewable energy and to support the adjustment to a low-carbon economy. After the 2008/2009 Global economic crisis – in which countries most countries have not yet recovered from, including Germany and the United Kingdom, whom are South Africa’s major trading partners – the economy still remains in a recession. Thus, in order to coun...

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