Interventions for economic modelling

This section focuses on suggested interventions and policy changes that should be considered for economic modelling. Modelling will quantify the impact of the suggested interventions on the economy.

Efficient bureaucracy

Efficient bureaucracy should be modelled. For instance, what the implications would be if South Africa cut red tape and adhered to regulatory approval timelines that are of an acceptable international standard.

Energy crisis

The roadmap must deal with the energy crisis in a focused manner. Specific energy-related actions with specific outcomes must be identified and modelled, such as the impact of the 100 MW reform that will boost private investment in electricity generation; the impact of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) bid windows (as well the negative impact of delays on the REIPPPP), the impact of resolving Eskom’s unsustainable debt and allowing for it to return to capital markets to fund its investments.

Interventions for economic modelling

Government coordination crisis

In addition to the electricity supply crisis, there is a crisis of government coordination, or lack thereof. Although difficult to model, because it touches across so many aspects, it is one of the key reasons behind the lack of implementation in the public sector.

Transport and logistics

A model for transport and logistics must be pursued, considering the debilitating impact that failures in this regard are having on the economy. For instance, economic modelling could determine the value in terms of GDP growth and trade benefits.

Private-sector deregulation

The implications of deregulating the private sector, and specifically small, medium-sized and micro enterprises (SMMEs), must be modelled, with the examples of South Korea and New Zealand to be drawn on. The deregulation of SMMEs should not have a major cost implication for government, but could get the economy moving while other issues of electricity and infrastructure are being addressed.

Confirmation of property ownership through secure title

Security of title deeds for those occupying properties could be pursued. A model has already been developed that shows that giving people ownership of the properties that they occupy has a positive impact on their finances, on investment and on economic development.

Private-sector collaboration

Although difficult to model, the report should consider the implications of a positive mode of collaboration between government and the private sector.

Downside risks

The ‘downside risk’ posed by the disintegrating social fabric, lawlessness and the dysfunctional and ineffective criminal justice system must be considered and modelled.