South Africa: Democracy Works Foundation & Human Science Research Council - Building an Inclusive Post-Covid-19 Economy for South Africa
DATE: 24 August 2020
Given the cataclysmic nature of the Covid-19 economic crisis conventional economic responses, of pursuing counter-cyclical fiscal policy, which is increasing public spending and cutting taxes, to stimulate the economy, employment and growth, on their own, will not do as solutions for South Africa.
Ideological responses or wishful thinking will also not do. Finance Minister Tito Mboweni (2020) has said in the Covid-19 Emergency Budget that government intends to borrow US$7bn (R118bn) from international finance institutions, which includes a US$1bn loan from the New Development Bank, and US$4.2bn through the International Monetary Fund's rapid financing instrument.
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