An appraisal of the South African Government Macroeconomic Policies and Strategies (1994-2012)

• Main Author: Zuma, Siziwe Monica
• Format: Others
• Language: English
• Published: University of Fort Hare 2013
• Online Access: http://hdl.handle.net/10353/d1013582

This study sought to do an overview and the role of Public Administration both as an academic discipline and as a discipline in practice. It sought to do a literature analysis of the macroeconomic policies and strategies that the democratic from 1994- 2012 particularly with regards to lowering unemployment and meeting public needs. The literature review on the Freedom Charter and the South African democratic government’s macroeconomic policies namely the RDP, GEAR, ASGISA, New Growth Plan, and the National Development Plan were studied in great detail in this study. Public Finance in terms of the tax revenues collected and public debt servicing costs have contributed to the capacity of the SA government to meet its public needs and social needs including poverty eradication. It identified that the NDP because of its longer term plan approach its goals could be realizable. It identified that the South African democratic government macroeconomic policy has been consistent since 1994 that of belt tightening or fiscal policy that is tight on fiscal spending and monetary policy also has remained the same although different names have been used over the period 1994-2012. The South African democratic government since 1994 has been pursuing austere fiscal policy. This is because it inherited a government that had high public debt and therefore had to prioritise of servicing that debt. That meant that there has been less funds available to spend on public needs as the aspirations of the people when they drafted and adopted in a congress of the ANC the freedom charter in 1955. The South African democratic government through its macroeconomic policy has created a number of positive changes in the country economically and socially that have benefited a lot of the previously marginalized people of South Africa however the macroeconomic objectives of reducing unemployment, growing the economy, increasing exports and lowering inflation still remain a huge challenge in this country. This study concludes that in order to increase revenues to meet public needs government needs to look at increasing its revenue base rather than borrowing the money as that will create the same challenge that it is currently facing hence it adopted the austere fiscal policy.