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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

Weak states and armed movements – researching the underlying links
2014-08-28

 

Prof Theo Neethling is conducting research on armed movements in the DRC.
Photo: en.wikipedia.org

Prof Theo Neethling from the Department of Political Studies and Governance is currently conducting research on armed movements in the Democratic Republic of the Congo (DRC).

“My research is premised on the scholarly insight and argument that in weak states, such as the DRC, armed movements and militias are filling power vacuums that are the result of the inability and lack of military capacity to fight these movements effectively,” Prof Neethling says.

“In this context, the DRC is severely affected by sub-state terrorism,” he continues.

“This is a phenomenon that is intimately linked to the failure to effect sustained development and to consolidate accountable and effective governance in especially the eastern provinces of the country.”

Earlier this year, Prof Neethling presented conference papers on this topic at two international conferences: the Conference of the New York State Political Science Association, as well as the World International Studies Conference hosted in Frankfurt, Germany.

In 2013, Prof Neethling co-edited the book, ‘Post-Conflict Reconstruction and Development in Africa: Concepts, Policy, Role-players and Practice’. He completed this work in collaboration with Prof Heidi Hudson from the UFS Centre for Africa Studies.

“The book revolves around the concept of ‘post-conflict’ and the blurring of military and civilian roles, analysing the multiple roles of the United Nations in the DRC and Sierra Leone, as well as the African Union Mission in Burundi,” Prof Neethling says.

“It also explores South Africa’s foreign policy imperatives in relation to multinational peace missions in conflict-stricken African states, involving military as well as civilian role-players.” 
 
 
 
 
 

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