Answer to Question #230879 in Macroeconomics for Mbali

Question

Briefly explain the weakness of the RSAs industrial development zones

Answer 1

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The RSAs industrial development zones face the following weaknesses :

-lack of policies to protect against workers exploitation and environmental degradation .

Pollution from industry effluent and smoke has been blamed for the poor and ill health of many South Africans who live in the vicinity of IDZs.

-Massive loss on tax revenue due to extension of incentives and exemptions given to the business projects built within the demarcated zones .

-Negative attitude towards the development zones meeting expectations .will the project be able to attract desired investments and assist the country to master the preferred industrial capabilities.

-Competing interests and lack of experience. Lack of all required resources and experience to actualize the goal of the need of the development zones .There are also competing interests that may hinder the attainment of the project objectives .

--Other critical endeavors, such as education and health funds , have been diverted to fund these development zones hindering delivery on this and other critical areas of the economy.