Africa-Press – South-Africa. Efficient Group chief economist Dawie Roodt said South Africa can bolster its economy by cleaning the place up and following the road rules.
Roodt shared his ideas during a discussion about the South African economy with Truth Report’s Renaldo Gouws.
He explained that South Africa’s economy is in a dismal state, caused by ideological and political problems rather than structural issues.
“The economy is hardly growing, and South Africans are poorer on a per capita basis today than they were 15 years ago,” he said.
Gross Domestic Product (GDP) per capita is a financial metric that breaks down a country’s economic output per person.
It serves as a proxy for a country’s average wealth per person and the living standards of its citizens. A higher GDP per capita correlates with higher living standards.
In 2010, South Africa had a GDP per capita of $7,973. Over the last 15 years, it has declined to $6,830.
This means that South Africa’s GDP per capita declined by roughly 14% in nominal dollar terms since 2010.
South Africa is one of the few large economies to see a persistent decline in GDP per capita over the last 15 years.
While the economy has grown in local currency, it has struggled to outpace population growth and the depreciation of the rand against the dollar.
This poor economic growth is caused by numerous factors, including poor policies, collapsing state institutions, and corrupt municipalities.
Roodt added that South Africa is stifled by administrative burdens, making it difficult to hire or fire employees or start a business.
How to fix South Africa’s economy
Efficient Group chief economist Dawie Roodt
Roodt has repeatedly said that it is easy to fix South Africa’s economy if it were not for the stubborn politicians who cling to destructive policies and ideologies.
The government can start by getting rid of Expropriation Without Compensation, National Health Insurance, and Black Economic Empowerment policies.
It should also cut taxes, especially corporate income tax, reform state-owned enterprises, reduce government spending, and cut red tape.
However, these will be difficult to implement due to the government’s belief in socialism and interventionism, which are incompatible with economic growth.
Roodt accepts this reality and suggested two much easier things the government can do to bolster the economy and sentiment in the country.
Clean the place up: The President must say we are going to clean the country up and make it look nice. This includes fixing the pavements and broken windows.
Fix the mess on the roads: Get people to follow the rules of the road. The police and metro police must just do their jobs to enforce these rules.
“These things can be a success. People will support them, and it will not cost the government much,” he said. “Make a success of these two things, and the sentiment in the country will improve, and people will support you.”
He added that everyone likes a success story and that these two things are easy wins for the government.
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