http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.69Change: -0.06
R/$ = 10.62Change: -0.04
Au 1292.17 $/ozChange: 2.12
Pt 1411.00 $/ozChange: 1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 10, 2012

Government planning, infrastructure key growth drivers - Leipziger

Back
George Washington University International Business Professor Danny Leipziger on the importance of governments in planning for the supporting economic growth. Camera Work: Nicholas Boyd. Editing: Darlene Creamer.
Johannesburg|Danny Leipziger|Asia|South Africa|George Washington University|Economic And Social Infrastructure|Michael Spence|Maryland
johannesburg|danny-leipziger-company|asia|south-africa|george-washington-university-facility|economic-and-social-infrastructure|michael-spence|maryland
© Reuse this



In the prevailing context where economic growth will be harder to generate and global competition will intensify as nationalism grows, governments will have to play more strident roles in planning for and supporting economic expansion initiatives, a leading international economist told a South African audience at the weekend.

Speaking at the Centre for Development and Enterprise, in Johannesburg, Danny Leipziger, a former World Bank VP and currently international business professor at George Washington University, said that the Great Recession of 2008 and 2009 had served to reinforce the indispensible role that governments played in coordinating economic growth and development, as well as in guaranteeing stability.

Leipziger was the vice-chairperson of the 22-member Commission on Growth and Development, which was initiated in 2006 under the leadership of Nobel Laureate Michael Spence to study which policies and strategies had supported rapid and sustained economic growth and poverty reduction across the world. He is currently the MD of the Growth Dialogue, which seeks to connect policymakers and thought leaders to advance the economic-growth cause internationally.

In the commission’s work, which preceded the prevailing economic crisis, it was discovered that only 13 countries, mostly from Asia, had been able to sustain yearly growth rates of more than 7% for 25 years.

Five factors – including market openess, good macroeconomic management, a future orientation, a market orientation and strong government leadership and planning – were identified as having been common across all those countries.

Even ahead of the crisis the commission found that the governments in fast-growing countries had been central to crafting and driving the economic vision and in developing the economic and social infrastructure required to support rapid rates of growth.

“I believe that government’s role is even more indispensible than in the past . . . but it’s not the size of government that matters, but the effectiveness,” he said, noting that governments were currently not only being called upon to act as regulators, but also as risk mitigators.

It would take a combination of factors in the current hostile environment to ensure that a country was placed on a competitive footing. But the deployment, ahead of demand, of well-planned and implemented infrastructure could be an important growth “trigger”.

“I’m a big fan of infrastructure investment, because there is no country in East Asia that has grown rapidly that did not invest highly in infrastructure.”

But infrastructure was but one element, with another key factor being the development of a country’s human capital, as well as putting in place structures and policies to support the development of a domestic manufacturing sector.

Leipziger said that once South Africa had selected, through its national development plan or industrial policy, the areas in which it would compete it should immediately begin benchmarking itself against the international ‘best in class’ in those sectors and not simply against competitors in the neighbourhood.

“For South Africa, there are some major challenges that need to be tackled and it would be a mistake to try and tackle them piecemeal – you have to do a lot of things at the same time to create competitiveness and growth.”

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Economy News
Updated 6 hours ago South Africa needs to produce its own engineering skills, but it is important for all stakeholders to work together and not in isolation using the National Development Plan (NDP) as a guideline.
Updated 6 hours ago In Ernest Hemingway’s novel The Sun Also Rises, the question “How did you go bankrupt?” is posed. The response: “Two ways. Gradually, then suddenly.” For South Africa, the ‘gradually, then suddenly’ analogy could just as well be applied to the...
Updated 6 hours ago Trade union Cosatu has had a direct and indirect role in the destruction of an estimated one-million jobs in the South African economy over the last five years, says economic adviser to PwC Roelof Botha. The economist says Cosatu – “a dangerous organisation”...
More
 
 
Latest News
A new business association has been formally launched to link foreign suppliers of equipment to State-owned companies (SoCs) with large and small domestic companies in an effort to improve prospects for higher levels of local content in South Africa’s...
The Nelson Mandela Bay municipality has upgraded its Department of Human Settlements’ centralised information centre (CIC), introducing a new integrated land planning information system (ILIS) and refurbishing the interior and exterior of the centre, using...
The KwaZulu-Natal (KZN) Department of Transport on Thursday announced a 77.3 km, R1.2-billion road upgrade that would connect Pongola and eDumbe, in the north western part of the province. The project, of which the first 6.5 km, R65-million, construction phase had...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
Updated 7 hours ago Celebrating its fiftieth Green Star SA certification in only six years, and with a further 150 projects in the Green Star SA registration pipeline, the impact will increase significantly. “In South Africa, certified new green buildings now cover nearly one-million...
SMART MOVER What differentiates VWSA’s AGV line from other AGV lines is that it is a completely contactless system
Updated 7 hours ago Volkswagen Group South Africa (VWSA) has installed an automated guided vehicle (AGV) line to replace the traditional roller conveyor used on the VW250 engine line. An AGV is a mobile robot that follows markers or cabling in the floor, or uses vision or lasers to...
Updated 7 hours ago South Africa has an opportunity to achieve a similar result to that of China, which has lifted hundreds of millions of its citizens from poverty to prosperity, but the challenge is to develop world-class customer-focused engineers.
Updated 7 hours ago South Africa had more than enough money and resources to deliver on the constitutional promise of quality of life for all, but those involved in corruption have cost the country immensely.
LATE-ARRIVAL BMW The arrival of the i8 supercar has been delayed to March 2015
Updated 7 hours ago BMW South Africa has postponed the introduction of the i3 city car and i8 supercar to March 2015, says spokesperson Edward Makwana. The i3 is an electric vehicle, and the i8 a plug-in hybrid. Both models were scheduled for local introduction this year.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks