The Importance Of Radical Economic Transformation In South Africa

Introduction

“They can try to implement a form of ‘radical economic transformation’, sure, but it will be destructive.’’-Dr.Iray Abedian.According to South Africa: economy overview(2013), South Africa is ranked by the World Bank as an “upper middle-income country’, South Africa is the second largest economy in Africa after Nigeria.The unemployment rate is at 25% (compared to an average of 11% for upper middle-income countries, according to the World Bank), remains the most challenging of South Africa’s hurdles: it is at the top of government priorities and at the heart of its economic policies.SOUTH AFRICA’S BACKGROUND. The word radical means something that is far from reaching ( )economic transformation mean…….Radical economic transformation

Radical economic transformation is NOT private corporate, personal, state-captured, family interests propagated in the name of all black people. This radical economic transformation includes a targeted programme of supporting black industrialists, using government’s procurement to support women and youth businesses and buying of locally produced goods and beneficiation of minerals in order to create much-needed jobs. ( Manamela,2015). The principles that should guide the transformation agenda should include programmes that create jobs, eliminate poverty and narrow the inequality gap, mass-based transformation that benefit the most disadvantaged South Africans, private and public partnerships for infrastructure and technological advances and the establishment of a new economy where the legacy of race domination is no longer visible.( Economic transformation needs to get to the root of poverty,2017).Economic transformation and redistribution in South Africa will require growth. Growth can only be achieved by supporting sectors that promote fast economic growth, for example, agriculture, manufacturing, tourism, mining and the automotive industry

(10 corruption scandals that rocked South Africa:2015). In the past year they were corruption cases and mismanagement of public funds against the president and other government officials. When the country is faced with high corruption the Rand value will depreciate, the investor's abroad taking their investment to other countries. This will lead to a decrease in the economy. Some of the corruption cases include: in 2016 the president was requested to pay R7.8million of the money he used from the R246 million he used to improve his home Nkandla. This was one of the biggest corruption cases in the country, ever since the ignominious revelations that ANC spokesperson Carl Niehaus lied about his qualifications, many government key players have been outed as qualification falsifiers, in 2006, 14 ANC LPs were convicted and fined after pleading guilty to theft and fraud charges due to the abuse of parliamentary travel vouchers in a case known as Travelgate.( 10 corruption scandals that rocked South Africa:2015) Radical economic transformation it is a good idea but the main question will the government be able to implement it with the high corruption rate within the