http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.61Change: 0.00
R/$ = 12.46Change: -0.08
Au 1159.17 $/ozChange: -12.72
Pt 1047.00 $/ozChange: -14.20
 
 
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
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters 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.
 
 
 
Africa|Environment|Industrial|Africa|Manufacturing|Infrastructure
Africa|Environment|Industrial|Africa|Manufacturing|Infrastructure
africa-company|environment|industrial|africa|manufacturing|infrastructure
© 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 (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
President Jacob Zuma
Updated 1 hour 12 minutes ago The seventh Brics summit this week will see a deepening of relations in the emerging markets bloc as member nations sign a range of new agreements, the South African presidency said on Tuesday. The leaders of Brazil, Russia, India, China and South Africa would also...
Updated 7 hours ago Deputy Minister of Home Affairs Fatima Chohan declared on Monday that she is willing to accompany representatives of the South African tourism industry to China in order to see how dropping visitor numbers from that country can be curbed. She took part in a visa...
The Brazil, Russia, India, China and South Africa (Brics) economic grouping should “institutionalise” African issues at the upcoming Brics summit in Russia, from July 8 to 9. Africa had infrastructure needs of an estimated $100-billion a year, which was hampering...
More
 
 
Latest News
Updated 8 minutes ago The judgment on the urgent interdict brought by trade union Solidarity against telecommunications group Telkom’s restructuring process would be delivered on Wednesday morning. Solidarity lodged an application with the Labour Court accusing Telkom of disregarding a...
Updated 19 minutes ago All new office developments in South Africa should be legally required to offer end-of-trip facilities (EOTF) for cyclists and other nonmotorised transport (NMT) users to incentivise workers to use alternatives to road and rail commuter transport, delegates at the...
Updated 19 minutes ago Revising its initial April trading update for the first half of the 2015 financial year, aluminium manufacturer Hulamin on Tuesday said it now expected earnings to plunge by around 40% on the back of lower volumes, electricity supply curtailments, quality issues and...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96