Eco­nomic con­se­quences of po­lit­i­cal de­ci­sions

Finweek English Edition - - Front Page - DR CH BADEN­HORST

WE LIVE IN UN­CER­TAIN po­lit­i­cal times. How­ever, the long-term eco­nomic con­se­quences of in­cor­rect po­lit­i­cal de­ci­sions are much more wor­ry­ing. I’ve just read Alan Greenspan’s The Age of Tur­bu­lence. In my opin­ion it’s the best eco­nomic guide that dis­cusses sev­eral eco­nomic is­sues ob­jec­tively. It deals es­pe­cially with the world econ­omy over the past cen­tury and the con­se­quences of dif­fer­ent coun­tries’ eco­nomic de­ci­sions on eco­nomic growth and sta­bil­ity.

I think Fin­week and its read­ers should club to­gether and give a copy of Greenspan’s book to ev­ery mem­ber of the ANC’s ex­ec­u­tive as well as to ev­ery MP.

Even if the whole book isn’t read, I rec­om­mend that Chap­ter 12 (deal­ing with the ba­sic prin­ci­ples for en­sur­ing eco­nomic growth, such as prop­erty rights, free com­pe­ti­tion and the rule of law) as well as Chap­ter 17 (which deals with de­ci­sions by pop­ulist gov­ern­ments and the long-term con­se­quences, such as in sev­eral South Amer­i­can coun­tries and in Zim­babwe) should be read.

If SA’s new gov­ern­ment makes the cor­rect eco­nomic de­ci­sions many of this coun­try’s prob­lems – un­em­ploy­ment, crime and poverty – will ease by them­selves.

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