Overview
- First book to comprehensively cover the interaction of Land Reform, Unemployment and Inequality with regard to South African polices
- Explains how the policy of accelerated land reform will help reduce poverty and inequality
- Provides case studies and details on the mining and agricultural sectors
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Table of contents (31 chapters)
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Front Matter
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The Interaction Between Nominal Wage Inflation, Consumer Price Inflation and the Exchange Rate Appreciation and Depreciation Episodes and their Influence on Output Costs Associated with Disinflation
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Front Matter
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An Evaluation of the Performance of the Current Inflation Targeting Framework in South Africa and Whether Nominal GDP Growth Targeting is a Viable Alternative
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Front Matter
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The Output-Employment Intensities and the Structural Change Indices
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Front Matter
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Policy Uncertainty, Mining Sector Charter, Exchange Rate Volatility, Commodity Price Booms and Busts, Binding Minimum Wage Increases and the Mining Sector
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Front Matter
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Keywords
- BRICS GDP growth shocks
- Foreign economic growth uncertainty
- South African GDP growth
- Equity flows
- Monetary policy tightening shocks
- Federal funds rate
- Repo rate
- South African labor market conditions
- Output growth volatility
- Taylor curve
- Expansionary monetary policy
- Output-employment-unemployment nexus in South Africa
- Okun’s Law
- Wage growth
- Wage and consumer price inflation
- Exchange rate appreciation and depreciation
- Inflation
- Aggregate demand shocks
- Export-led growth
- Commodity price booms
About this book
The overarching goal of South Africa’s National Development Plan (NDP) is to eliminate poverty, reduce inequality, lower unemployment and increase the labour participation.This book contributes to academic and policy efforts to achieve these NDP goals. We establish that the coal, metal ores and the platinum group commodity sectors will underpin the mining as a “sunrise” industry. The export-led growth strategy is necessary for intensive employment creation but must be complemented by other micro, macroeconomic and industrial policies. A strategy of minerals beneficiation is important for intensive employment creation. Accelerated land reform is a supply side or structural reform policy intervention tool aimed at increasing potential output, changing ownership patterns in the economy, increasing entrepreneurship, labour absorption, economic inclusion and lowering income inequality. Evidence shows that the balance sheet channel, commodity price booms and busts are intricately linked with the exchange rate dynamics, policy uncertainty, confidence and the effects of droughts (also symptoms of climate change). Productivity and investment growth shocks matter for output, employment and price stability. Evidence indicates that nominal GDP growth above 10 percent and keeping inflation within the target band leads to significant increase in employment and decline in unemployment, without inflationary pressures, especially when inflation is below 4.5 percent. To operationalise the NDP targets, align and co-ordinate policies, the South African Reserve Bank (SARB) mandate can be expanded to include maximum employment. This must be complemented by lowering the inflation target band, adjusting the financial regulatory, macro-prudential and monetary policy frameworks. This will enhance the conduct and credibility of monetary and financial stability policies to achieve the set objectives. These objectives make policy co-ordination pertinent and binding.
Authors and Affiliations
About the authors
Nombulelo Gumata is an economist and has co-authored several books in the areas of international finance and macroeconomics, macro-prudential tools and financial stability, labour, monetary and fiscal policy.
Eliphas Ndou is an economist at the SARB and has authored books which cover areas in international finance, macroeconomics, microeconomics, monetary, labour and public economics, time-series econometrics, banking regulation and macro-prudential policy.
Bibliographic Information
Book Title: Accelerated Land Reform, Mining, Growth, Unemployment and Inequality in South Africa
Book Subtitle: A Case for Bold Supply Side Policy Interventions
Authors: Nombulelo Gumata, Eliphas Ndou
DOI: https://doi.org/10.1007/978-3-030-30884-1
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2019
Hardcover ISBN: 978-3-030-30883-4Published: 30 January 2020
Softcover ISBN: 978-3-030-30886-5Published: 26 August 2021
eBook ISBN: 978-3-030-30884-1Published: 03 January 2020
Edition Number: 1
Number of Pages: LXII, 642
Number of Illustrations: 387 b/w illustrations
Topics: African Economics, Macroeconomics/Monetary Economics//Financial Economics, Economic Growth, Agricultural Economics, Labor Economics