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06 March 2020 | Story Valentino Ndaba | Photo Stephen Collett
Lesetja Kganyago, Governor of the South African Reserve Bank
Reserve Bank Governor, Lesetja Kganyago, presented a public lecture at the UFS on 4 March 2020.

With a 7% fiscal deficit on the Gross Domestic Product (GDP) projected by the National Treasury for the 2020/21 financial year, it would not take long to arrive at a dangerous level of debt at the rate that South Africa is borrowing. Although the South African Reserve Bank Governor, Lesetja Kganyago, does not consider a debt to GDP rate of 60% a disaster, he did express his concern regarding the country’s fiscal deficits being over 6% of the GDP.

Governor Kganyago presented a public lecture at the University of the Free State (UFS) on 4 March 2020, focusing on how we should use macro-economic policy and its role in our economic growth problem.

Unsustainable policies 
South Africa’s fiscal situation is not about tight monetary policy. According to the Governor: “Weak growth is endogenous in our fiscal problems. We cannot keep doing what we are doing and hope that growth will recover and save us. Growth is low, in large part, because of unsustainable policy.”

Avoiding an impending crisis
To address the problem, as a policymaker with more than 20 years’ experience, the Governor suggested that the recommendations made by Minister Tito Mboweni be taken into consideration. “The Minister of Finance, Tito Mboweni, is a man who says things that are true even when they are unpopular. His message is that we have to reduce spending and he is right to put this at the centre of our macro-economic debate,” said Governor Kganyago.

The state needs a radical economic turnaround strategy which is able to diminish the risk of losing market access and being forced to ask the International Monetary Fund for help. Governor Kganyago is positive that such a reformative tactic would go beyond monetary policy and ensure that the interest bill ceases to claim more of South Africa’s scarce resources. 

News Archive

UFS academic speaks on Islamic terrorism
2012-09-12

 
 Prof. Hussein Solomon

Senior Professor Hussein Solomon from the Department of Political Studies and Governance at the University of the Free State (UFS) says it is imperative that we understand how ordinary Muslims are socialised, violently radicalised and primed to engage in acts of terror.

He was speaking at the Inter Religion Forum in the Faculty of Theology on the topic, “The rise of Islamist fundamentalist thought”.

According to Prof. Solomon, “The war on terror is truly a struggle between competing ideologies, after all, before a suicide bomber detonates his/her vest he/she must be ideologically indoctrinated to believe that what he/she is doing is the ‘right’ thing both in terms of the act and target.” Prof. Hussein, however, assured that the pure teaching of Islamic is not in favour of terrorism and killing.

Most of the twentieth century witnessed an ideological struggle between freedom and democracy. According to Prof. Solomon, “democracy” won that struggle. “The ideological struggle between freedom and authoritarianism is, however, far from over and thus we witness a clash of two competing ideologies across the globe,” he said.

He added that this is not an inter-civilizational conflict. “It rather is occurring within Muslim societies and between radical Islamists and the West.”

“A major battle is taking place in Islam between moderates, who in my view are the real Muslims, and the Islamo-fascists. Non-Muslims cannot simply regard this battle as an internal struggle. They need to support the moderate Muslim actively.”

“Should moderate Muslims lose this struggle, a clash of civilisations will become inevitable and the future will resemble a world of a war of all against all,” Prof. Solomon said.
 

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