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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

"Participation without insight leads to pronouncements without prospects"
2004-08-30

Taking the poor off the streets and encouraging their participation in the planning process is not always empowering them but it might be robbing them of their power, said Prof Das Steyn, of the Department of Urban and Regional Planning at the University of the Free State (UFS).

Speaking on public participation in the planning process during his inaugural lecture, Prof Steyn said this meant that people in the streets sometimes have more power than people in the system.

“Public participation is an overgeneralization that is often defined as providing citizens with opportunities to take part in governmental decisions and planning processes. But there must be a balance between power and responsibility,” he said.

According to Prof. Steyn, public participation in town planning plays a vital role and can be both deliberation and participation.

After 1994 there was a widespread insistence on democracy, and legislation passed since then was based on the belief that the community must be involved in the planning process.

He said the experience of the Department of Urban and Regional Planning at the UFS was that in some cases people showed lack of interest in public participation.

He believed that the aim of public participation is to improve the effectiveness of planning and that public participation democratises project planning.

“Public participation can help us know how the public feels about certain issues. It has the potential of resolving a conflict, but this is not guaranteed,” Prof Steyn said.

 

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