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NATIONAL COUNCIL OF PROVINCES
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 344
DATE OF PUBLICATION: 10 SEPTEMBER 2010
Mr R A Lees (DA-KZN) to ask the Minister of Economic Development:
Whether his department has identified the factors which impede the
countryâs economic growth; if not, what is the position in this regard; if
so, (a) what processes have been followed to identify these factors, (b)
what are the causes and/or reasons that were identified and (c) what action
has been or is being taken to eliminate the causes and/or reasons
identified? CW440E
REPLY
Yes, the Department has identified the factors which impede the countryâs
economic growth. The Department used research available in government,
engaged policy-makers and drew on a wide range of expertise. A number of
causes were identified, ranging from infrastructure bottlenecks, skills
constraints, insufficient beneficiation and processing of minerals and
agricultural products, a low savings rate, an uncompetitive and volatile
exchange rate, economic concentration and rent-seeking behaviour, as well
as the constraints produced by high unemployment, inequality and poverty,
among many factors identified. This work has informed governmentâs new
growth path, details of which are expected to be released as soon as it has
been finalised through the Cabinet system.