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Ramaphosa must fuse fixing broken institutions and economic policy
Author: Prof Mark Swilling
Published: 22/02/2018

​The following article by Prof Mark Swilling, Distinguished Professor of Sustainable Development at Stellenbosch University, was published by The Conversation on 19 February 2018:

 

The state of the nation speech delivered by South Africa's new president Cyril Ramaphosa was designed to project an image of hope and change. The new head of state emphasised the fight against corruption, improved governance of state owned enterprises, expropriation of land without compensation and the rebuilding of the manufacturing sector.

But Ramaphosa and his incoming team are probably well aware that they face the challenge of rebuilding the institutions that were destroyed during the Jacob Zuma area. This is confirmed by references to the appointment of a new board for the power utility Eskom and a commission of inquiry into the South African Revenue Services.

The challenge that will face Ramaphosa's administration is how to rebuild the institutions as the centrepiece of a new economic policy. The problem is that institution building and economic policy making in South Africa have, until now, been kept separate. Institution building is about rule making and governance. Economic policy is about maintaining macroeconomic stability. The groups of experts who cluster around these two focus areas find it hard to understand each other. This will have to change if Ramaphosa's promises are to be realised.

Going forward it will be necessary to address institutional reform as an economic strategy.