Answer to Question #104496 in Macroeconomics for Nonhlanhla

Question

The National Development Plan of 2011 was developed in light of the following nine challenges:
1. Too few people work
2. The quality of school education for black people is poor
3. Infrastructure is poorly located, inadequate and under-maintained
4. Spatial divides hobble inclusive development
5. The economy is unsustainably resource intensive
6. The public health system cannot meet demand or sustain quality
7. Public services are uneven and often of poor quality
8. Corruption levels are high
With respect to each of these challenges, provide a discussion on how the South African government can intervene to address these challenges based on macroeconomic 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
• development of the agricultural sector through a system of support for farmers' measures: cheap loans, subsidies, tax breaks
• 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
• attraction of investments
• construction and repair of schools in the countryside