Answer to Question #229336 in Macroeconomics for Llp

Question

How successful was the New Growth Path in influencing economic growth and development in South Africa?

Answer 1

The New Growth Plan has had a substantial impact on the economic growth and economic development in South Africa since its inception in 2010. The New Growth Plan succeeded in stimulating the growth and development of the South African economy in many vital sectors.

The New Growth Plan has enabled the South African government to reduce unemployment rates significantly through measurable investments in infrastructure. This has proved beneficial to the citizens as it has created many new jobs for the South African citizens. This has had a direct positive impact on the growth and development of the economy. The investments in the energy sector, transportation sector, communication, water, and housing sectors have created thousands of jobs in the economy since the plan was flagged off in 2010 up to 2020. Despite the opposition from various stakeholders, these investments have created employment opportunities for unemployed citizens.

The New Growth Plan has increased tourism activities in South Africa. This, in turn, has enabled the government to increase its revenue through tourism activities which they subsequently use in financing development activities and other capital investments.

Investments in agriculture and mining have generally made a more considerable contribution to South Africa's economic growth and development.

In conclusion, despite the many opposing views from some quarters of the stakeholders in South Africa and development partners, the New Growth Plan introduced by the government in 2010 has contributed to the growth and development of the South African economy. It has succeeded with the implementation of the objectives of the development strategy.