Open AccessGlobalisation, economic policy and the new dualism in the South African economy
Author(s) -
Gavin Maasdorp
Publication year - 2001
Publication title -
suid-afrikaanse tydskrif vir ekonomiese en bestuurswetenskappe/south african journal of economic and management sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.277
H-Index - 17
eISSN - 2222-3436
pISSN - 1015-8812
DOI - 10.4102/sajems.v4i3.2660
Subject(s) - dualism , poverty , economics , globalization , dual economy , government (linguistics) , foreign direct investment , investment (military) , labour economics , market economy , economic growth , macroeconomics , political science , law , philosophy , linguistics , epistemology , politics
Economic dualism in South Africa has mutated from the original modem vs. traditional sector conception to one of poverty vs. non-poverty. Globalisation provides opportunities to reduce poverty, but government policies determine the outcome. The South African government's sound macroeconomic policies have not been matched on the micro side. The labour market has not been liberalised, employers are loath to increase staff numbers, and foreign investment in labour-intensive industries is not being attracted. The policy choice is one of lower real wages and more jobs or higher real wages and fewer jobs. The unemployed and those in absolute poverty would opt for the former, unionised labour for the latter. Policy reforms will be politically difficult, but without them the dual economy will persist.