Answer to Question #105158 in Macroeconomics for Mike

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 9. South Africa remains a divided society

Answer 1

There are several ways to accomplish these tasks. The first way is to borrow funds from another state or from an international organization. Borrowed funds should be invested in a way that will provoke the creation of new jobs and to require highlyqualified workers in the future. Power plant, for example. The second method is non-economic. It should be followed if borrowed money is at risk of withdrawal into the shadow sector. In this case, it is necessary to create competition between the shadow subjects. In the struggle, they will need the support of the people in order to overtake each other and maintain leadership. To get people's support, they will be forced to appease people. During competition their business will be legalized to get the support from goverment. In this case, it is necessary to exclude or minimize the possibility of gaining strength in competition due to politics. And goverment has to be with people in all ways as F. Roosevelt was with USA.