South Africa’s high rate of unemployment (26.4%) makes it a complete outlier compared with other middle-income countries. Indeed, the unemployment rate rises to 36% if discouraged workers are taken into account. It underpins extreme poverty and inequality and is a major contributor to social dislocation. If it were not for increased social payments, poverty would have continued to increase since the advent of democracy in 1994. Unemployment also represents a huge cost to growth. This book focuses on the growth path of the economy. The starting point is that while more rapid economic expansion is an important objective, at any given level of growth, the economy as a whole needs to become more labour-absorbing. The central question posed is how to bring about changes in the economic structure and pattern of development, which would lead to the attainment of this objective. The authors argue that employment needs to be much more centrally positioned within the economic and social policy arena. They emphasise innovative approaches within a broader focus on the growth path, and employment-intensive growth. And they posit that the negative impact of previous ‘distortions’ requires much more than a levelling of the playing field via market-based reforms. Apart from presenting an alternative growth path which could start to shift the economy in new directions, the book tackles themes which have received only limited attention, such as wage subsidies, youth unemployment and employment growth in rural areas.

While sharing some characteristics with other middle-income countries, South Africa is a country with a unique economic history and distinctive economic features. It is a regional economic powerhouse that plays a significant role, not only in southern Africa and in the continent, but also as a member of BRICS. However, there has been a lack of structural transformation and weak economic growth, and South Africa faces the profound triple challenges of poverty, inequality, and unemployment. Any meaningful debate about economic policies to address these challenges needs to be informed by a deep understanding of historical developments, robust empirical evidence, and rigorous analysis of South Africa's complex economic landscape. This volume seeks to provide a wide-ranging set of original, detailed, and state-of-the-art analytical perspectives that contribute to scientific knowledge as well as to well-informed and productive discourse on the South African economy. While concentrating on the more recent economic issues facing South Africa, the handbook also provides historical and political context. It offers an in-depth examination of strategic issues in the country's key economic sectors, and brings together diverse analytical perspectives.

‘A must-read, accessible and skilful account of South Africa’s socio-economic challenges, policy and governance choices.’– THEMBA MASEKO All the numbers on South Africa’s crisis dashboard are blinking red. The economy is failing to grow and more and more young people find themselves on the outside looking in as education falters and jobs disappear. Energy and transport are in crisis. Governance is floundering as debt mounts and government runs out of money. Better Choices is a collection by South Africa’s top thinkers on the political economy, providing an unflinching account of the myriad challenges the country faces. The picture that emerges is of a nation on the brink of a catastrophic slide into failure unless better, if tough, policy choices are made. As stark as these problems are, their solutions are tantalisingly close at hand. The chapters in this book outline exactly the solutions – those ‘better choices’– that need to be made by leadership to alter the country’s bleak trajectory. South Africa cannot talk its way out of trouble. Key to success is removing the sources of friction – the red tape, over-regulation and rents – that slow down investment. This is only possible if a more effective, focused government acts decisively. Compiled by The Brenthurst Foundation, Africa’s leading think tank on economic development, Better Choices is for those who want to build a positive, inclusive future for South Africa.

The depletion of South Africa’s (and in some cases the world’s) natural resources and the degradation of environmental sinks (including the atmosphere, lakes and rivers, and land) are continuing at such a rate that natural resource prices are climbing and many critical ecosystem services that underpin human welfare are increasingly threatened. The concept of the ‘green economy’ has gained increasing traction in South African policy discourses over the past few years. However, in much of this discourse it is viewed in a piecemeal way as one part or sector of the economy (e.g. an industrial sector dealing with manufacture and installation of renewable energy technologies and energy-efficient equipment and appliances). In the view of the authors, ‘greening the South African economy’ requires an application of sustainability principles and practices across the full range of primary, secondary and tertiary sectors of the economy in an integrated manner. The aim of this book is therefore to apply principles of sustainability and ‘green economics’ to the entire South African socio-economic system and its major elements in an integrated and comprehensive manner.

This book uses the South African case to argue for inclusive dualism as a development strategy in surplus labour countries. It shows that low- and high- productivity firms can co-exist and challenges the notion that a race to the bottom is inevitable.

A study prepared by the United Nations University World Institute for Development Economics Research (UNU-WIDER)

Taking South Africa as an important case study of the challenges of structural transformation, the book offers a new micro-meso level framework and evidence linking country-specific and global dynamics of change, with a focus on the current challenges and opportunities faced by middle-income countries.