SURVEY OF SOUTH AFRICA
The mission of the Organization for Economic Co-operation and Development (OECD) is to promote policies that will improve the economic and social well-being and economic conditions of people in all of the countries in the free world.
The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems. We work with governments to understand what drives economic, social and environmental change. We measure productivity and global flows of trade and investment. We analyze and compare data to predict future trends. We set international standards on a wide range of things, from agriculture and tax to the minimum safety standards required and the environmental impact of a variety of chemicals.
By the Organization for Economic Co-operation and Development http://www.oecd.org/eco/surveys/economic-survey-south-africa.htm
Pretoria, July 24, 2017
Finding new ways to boost growth and job creation
Listed below are some of the shortcomings seen by the OECD Survey of South Africa Report released July 24, 2017.
- Short-run fiscal and monetary policies offer limited scope to boost growth.
- Bold structural reforms are needed to increase access to network sectors and services
- Improving education access and quality, reducing the cost of energy and developing transport infrastructure can boost the economy
- Deepening regional integration in the SADC will expand market size and open new opportunities for growth
- Entrepreneurship is low compared to other emerging economies
- The environment for new and small businesses is more difficult than in other countries, but reducing red tape would create jobs.
The OECD Recommends
- Set up an independent commission of experts to advise on minimum wage adjustments.
- Develop apprenticeship and internship programmes to increase youth employment.
- Limit annual wage increases in the public sector and redeploy civil servants to priority areas.
- Deepen implementation of public procurement reform and enforce sanctions for breaches of the Public Financial Management Act.
- Ensure that state-owned enterprises respect procurement and expenditure rules.
- Set up a scheme of universal student loans contingent on future incomes, with participation from banks and government guarantees.
- And in relation to Small Business
- Enact a package of reforms to reduce red tape.
- Introduce a “silence is consent rule” for licensing procedures that have low associated risks. Systematically review and reduce the stock of red tape and licensing requirements
- Open up telecommunications, energy, transport and services sectors to competition.
- Evaluate and streamline financial and non-financial support for start-ups and small businesses.
- Expand second-chance programmes for early school leavers
- Increase entrepreneurial education and work placements in the post-school education system.
