As a priority South Africa should focus on restoring a sustainable budget situation.
This will require government to make some painful policy choices about levels of
expenditures as well as the purposes for which funds are allocated.
The government can build confidence in these choices if it can show that:
# the benefits exceed the costs and that the costs are being equitably shared.
# Policy choices are based on both the human rights imperatives stipulated in the
South African Constitution and on promoting growth.
# it’s serious about addressing the governance problems in state owned enterprises
and government departments.
# it is complying with the legal procedures applicable to government finances and the
open budgeting processes that it used in the past.
Finally, government must encourage other social actors – such as business and labour who have contributed to the crisis – to help mitigate the pain. A demonstration of
broad support would help convince the IMF to support the government’s strategy.