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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. 

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Stochastic Modelling for Reliability from Russia
2013-12-20

 

 Prof Maxim (MS) Finkelstein’s
The Russian professor first visited our university in 1993 and loved the environment. For the last 15 years we were fortunate to have had a man of Prof Maxim (MS) Finkelstein’s (65) stature as part of our Department of Mathematical Statistics.

“I like the atmosphere, the environment and the people of the UFS,” says Prof Finkelstein. “The UFS is a real campus, not part of the city as a lot of other universities in South Africa.”

Prof Finkelstein completed his MSc in Mathematical Physics from the Leningrad State University in the USSR in 1971. Maths and Physics have been a passion of his since a young age. In 1979, Prof Finkelstein completed his PhD in Mathematical Theory of Reliability at Leningrad Elektropribor Institute. Before his career at our university, Prof Finkelstein was a Senior Researcher at St. Petersburg Elektropribor Institute and an Associate Professor at Leningrad Technological Institute.

His long list of publications includes over 170 papers and five books. His monograph Failure Rate Modelling for Reliability and Risk was published by Springer in 2008. More recently another monograph – which was co-authored with JH Cha – was published by Springer in April 2013 and is called Stochastic Modelling for Reliability: Shocks, Burn-in, and Heterogeneous Populations.

Prof Finkelstein’s research interests include mathematical theory of reliability, survival analysis, risk and safety modelling, stochastic processes and stochastics in demography. When asked about leisure and life outside of research, the devoted academic’s response was as follows…

“To have publications, you have to work all the time. I work half of Saturdays and most of Sundays,” Prof Finkelstein says. “I spend three months a year in Russia and Germany – mostly during the European summer – for my research.”
“But apart from that, I like reading – classical Russian authors mostly. I swim in the UFS’s swimming pool almost every day and I play tennis as well.”

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