Answer to Question #104433 in Macroeconomics for Nwabisa

Question

The national development plan of 2011 was developed in the light of the following nine challenges 1. To few people to work 2.The quality of education of school for black people is poor 3.infrastructure is poorly located and inadequately and under-maintained 4. spatial divides hobble inclusive development 5.the economy is unsustainable resource intensive 6. the public health system cannot meet demand and sustain quality 7. public service are uneven and often of poor quality 8.corruption level are high 9. south Africa remain a divided society With respect of each of these challenges , provide a discussion on how the South African government can intervene to address these challenges based on macroeconomics theory

Answer 1

The South African government can develop the following measures to solve economic problems:

• setting a single political course for one party or several ruling elites in the government
• the real involvement of the black population in the country's economy, and not only a nominal increase in its total share in the authorized capital South African companies;
• transfer to the black population of the earth
• reduction by the Reserve Bank of South Africa of base and discount rates in national currency: inflation targeting and boosting the economy additional growth stimulus intense
• due to the depletion of mining mines development of the agricultural sector through a system of support for farmers' measures: cheap loans, subsidies, tax breaks
• support and creation of clusters for small business development
• search for alternative energy sources due to a sharp increase in electricity prices
• determine the reasons for the sharp increase in electricity prices: inefficient management of the energy company Eskom or outdated equipment
• elimination of economic disproportion
• development of a progressive tax system
• establishing effective management of backbone state-owned companies in the electric power industry and transport
• adoption of various amendments to the regulation of financial markets to eliminate existing certain risks
• investments in mining and processing industry, infrastructure and energy sector, transport
• reduction in prices for university studies, combining work for students with joint studies at universities
• construction and repair of schools in the countryside

Accelerating the economic development of South Africa is only possible by smoothing out existing macroeconomic imbalances and the government pursuing an active industrial policy and the creation of a single political course for the development of the country.