Lee-Roy Chetty

The importance of public spending

The existence of long-term growth effects from public spending is hardly contested in policy discussions. Growth literature that has emerged over the last 20 years supports the belief that public spending affects long-term growth. First, standard growth models explaining total output level as a function of factor inputs (capital and labour), as well as the…

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South Africa 2013

South Africa’s potential growth has slowed over the last few years. Considerable efforts will be needed to meet the Government’s goal of raising per capita income and to create 11 million new jobs by 2030. Moreover, inequality continues to be unacceptably high, suggesting that making growth more inclusive remains an important policy challenge. Our government…

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Addressing the housing shortage in South Africa

Access for the poor to urban land and housing is one of the main challenges facing policy makers in South Africa. Estimates suggest that 26% of households in the six metropolitan areas in our country live in in-formal dwellings, often “illegally” and with limited access to services. Movement from the informal to the formal sector…

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The financial crisis and emerging economies

The role of globalisation after the 2008–2009 financial crises has fundamentally altered the economic landscape around the world. Excessive dependence on exports to the United States and the European Union has long been identified as a problem for developing countries. Product and market diversification should be part of any trade or development strategy. The fall…

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Informal cross-border trade should be formalised

Despite being a source of income for many living on the African continent, as much as 43%, informal cross-border trade is regarded as illegal. Informal cross-border trade refers to trade in processed or non-processed merchandise that may be legal imports or exports on one side of the border and illicit on the other side and…

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Towards a low-carbon Africa

Renewable projects are being planned and implemented throughout Africa, bringing both immediate and long-term solutions to Africa’s energy challenges while congruently attempting to reduce greenhouse gas production and emissions. As a country extremely vulnerable to the impacts of climate change, South Africa has identified water, disease, food security and environmental migration as key areas where…

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Avoiding the resource curse in Africa

Over the last four decades, resource abundant countries in the developing world have consistently under-performed resource poor countries when it comes to economic growth, income inequality and good governance. It has been well established that the more intense a country’s reliance on mineral exports (measured as a percentage of GDP), the more slowly its economy…

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SA’s woes will ripple through region

Growth in sub-Saharan Africa has remained generally robust against the backdrop of a sluggish global economy. Regional output is projected to expand by at least 5% in 2012 to 2013, a similar pace to that recorded in 2010 to 2011. That being said, there is significant variation across the region, with solid expansion being recorded…

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The importance of technology in economic and social development

Technological innovation and Information Communication Technologies (ICTs) represent a way for developing world nations to foster economic development, improve levels of education and training as well as address gender issues within society. Entrepreneurship is crucial for economic development around the world. In countries such as Nigeria, Egypt and Indonesia, micro-entrepreneurs generate 38% of the gross…

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Investment flows back into Africa

Over the past 10 years, foreign direct investment (FDI) has helped boost sustainable economic growth in many African countries. In theory, FDI can assist to accentuate productive capacity, employment and exports. When properly managed, it can also bring secondary benefits in the form of transfers of technology, management expertise and marketing skills. With continued liberalisation…

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