Gear Goals

Gear goals
key goals of the policy as originally outlined were economic growth, decrease inflation, employment growth above the increase in economically active population, deficit on the current account and the balance of payments, a ratio of gross domestic, improvement in income distribution, relaxation of exchange controls and reduction of the budget defict.
ASGISA core objectives
The core objective of this government as set out in 2004 is to halve poverty
and unemployment by 2014.
BINDING CONSTRAINTS
The list of binding constraints emerging from analysis and consultation has been kept
short enough and focused enough to allow for a coherent and consistent set of
responses.
• Volatility and level of the currency. In spite of major improvements in the
administration of fiscal and monetary policy, currency volatility deters investors in
tradable goods and services outside of the commodity sector. The Rand remains
somewhat volatile, though the degree of volatility has been reduced. At present, the
relative volatility is accompanied by a currency that is overvalued in the sense that
economic resources are diverted into narrow areas of investment, laying an
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unsteady foundation for the future. A further area for macro-economic improvement
is in expenditure management, particularly in government capital investment.
• The cost, efficiency and capacity of the national logistics system. Backlogs in
infrastructure and investment, and in some cases market structures that do not
encourage competition, make the price of moving goods and conveying services
over distance higher than it should be. Deficiencies in logistics are keenly felt in a
country of South Africa’s size, with considerable concentration of production inland,
and which is some distance from the major industrial markets.
• Shortage of suitably skilled labour amplified by the impact of apartheid spatial
patterns on the cost of labour. The most difficult aspects of the legacy of...