Exploiting the Synthetic Triad of the South African TPSP, NIPP/IPAP ...

Essay from the year 2016 in the subject Economics - Industrial Economics, grade: 90%, Rhodes University, course: Trade and Industrial Policy, language: English, abstract: The aim of this essay is to examine whether the NDP’s vision for economy and employment can match the SDG (number eight) of economic growth (specifically, promoting inclusive and sustainable economic growth, employment and decent work for all). Furthermore, an analysis is made of the contribution that trade and industrialization can make towards the realization of this vision. In particular, what is examined is the power of the ‘synthetic triad’ of the NDP, the country’s trade policy and its industrial policy as formulated by the Department of Trade and Industry in realizing the vision of economic and employment growth in South Africa.The paper begins with a description of the visions and their explicit targets, as well as the current empirical reality in South Africa and within the global North. Following this, an examination of the literature on inclusive and labour-absorbing economic growth for developing countries is conducted to provide a conceptual framework – with a focus on the roles of trade and industrialization. Thereafter, the revealed conceptual framework is applied to the case of South Africa, while giving a little attention to the broader case of developing countries apropos the SDG. The conclusion then provides a summarized consolidation of the argument.The UN SDG number eight (decent work and economic growth) is matched with the NDP vision of employment and economic growth. Particularly, the role of trade and industrialization are assessed in enabling the realization of the goals in South Africa. It is shown that trade and industrialization form the basis for accelerated labour-absorbing economic growth characterized by high productivity and higher incomes. Underpinned by this, a ‘synthetic triad’ of South Africa’s TPSF, NIPF/IPAP, and NDP is key to achieve the NDP goal. ‘Synthetic’ because there is a synthesis between trade policy, industrial policy, and the broader development policy that reflects in the synthesis between the three policy frameworks aforementioned.