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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

Prof Melanie Walker to spearhead international organisation
2014-06-02

 
Prof Melanie Walker has just added another phenomenal achievement to her illustrious academic career. Members of the international Human Development and Capabilities Association (HDCA) have elected her to the leading role of Vice-President.

Founded in 2004 by Amartya Sen and Martha Nussbaum, the HDCA is a global community of academics and practitioners. Together, they seek to build an intellectual community around the ideas of human development and the capability approach. Ultimately, the association strives to drive these ideas into the policy arena.

With members living in over 70 countries world-wide, the HDCA promotes research across a wide field of disciplines. These range from economics, philosophy and development studies to health, education, law, government, sociology and more.

In her new role, Prof Walker will be working closely with the renowned philosopher, Prof Henry Richardson of Georgetown University, USA. He is currently President-elect of the association. “My election as Vice-President will enable me to work closely with Henry and the Executive Committee to build on the first successful decade of the association to strengthen its reach and responsiveness to researchers, practitioners and policy makers,” Prof Walker says. “It is a tremendous honour to have been elected and a wonderful challenge for the next three years, personally and professionally. It will also place a significant spotlight on the human development and capabilities research I am leading at the UFS.”

Annually, the HDCA organises an international conference. This year celebrates a decade of successful symposiums and will take place in Athens. Eight Kovsie graduate students and researchers from the UFS’s Centre for Research on Higher Education and Development have had their papers accepted.

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