26 Apr

Reserve Bank governor raises questions over “radical economic transformation”

Radical economic transformation is a buzzword that has gained traction in the last few months, largely thanks to rhetoric from President Jacob Zuma. But what the hell does it mean?

Well, a top economist says he’s not sure. South African Reserve Bank governor Lesetja Kganyago was a guest speaker at a public lecture on monetary policy at the University of KwaZulu-Natal’s Westville Campus and answered a question from the audience.

He said: “As an economist‚ whenever a concept is introduced‚ I try and delve through the literature to find what are the positives of this concept and what does it mean. As it stands‚ after going through the literature‚ I am none the wiser.”

Kganyago is a former director general of the national treasury.

“It’s a concept that is used by everyone and it also means the same that we are talking about here. What are the income distribution issues in our country‚ how is land distributed‚ what are the ownership structures‚ how is corporate governance in the country taking place‚ how is capital distributed in the country and so forth‚ and so forth‚” said Kganyago.

“And do the majority of citizens have a stake in the economy‚ either in the form of a job or in the form of ownership or in the form of some meaningful economic activity? And everywhere in the world it is called inclusive growth. Why we complicate it in South Africa‚ I do not know.”

Read more here: The South African

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