Answer to Question #243996 in Macroeconomics for Lebo

Question

How successful was the new growth parth in influancing economic growth and development in south africa?

Answer 1

Solution:

Since its inception in October 2010, the South Africa New Growth Plan (NGP) has had a significant impact on the economic growth and development in South Africa through the enactment of various economic policies. Before the creation of NGP, unemployment, and poverty in South Africa had reached enormous high levels. However, NGP provided a realistic chance of turning around the spiral of unemployment, poverty, and inequality.

The main focus of NGP was job creation and improvement of inequality levels, reduction of poverty, improved coordination, planning, and implementation of economic policies in all the spheres of government in order to stimulate economic growth. NGP also encourages strong partnerships between government, business, and communities including enhanced cooperation with other nations. NGP identified economic sectors such as infrastructure development, agriculture, mining, manufacturing, tourism, and informal sector as having potential for job creation. It has prioritized on these economic sectors, and this has borne fruits by creating more employment opportunities for the youth thus decreasing the unemployment rate in South Africa. As a result, the economy in general in terms of real GDP has improved greatly due to NGP's key economic policies.