India, Brazil, and South Africa face enormous threats to their competitiveness and growth. Each country lags with respect to the quality of its infrastructure; the quality of its schooling for the vast majority of its citizens; and both Brazil and South Africa lag badly with respect to higher economic growth rates.
South Africa has built up what is probably the most extensive and expensive welfare state in the developing world. It now encompasses some 15 million people, and involves a variety of unconditional grants.
In South Africa, there exists major distrust between the state and business. This has come at a cost of strategic and co-ordinated partnership for transformation and development in order to address problems of poverty and unemployment.
A country’s economic governance reveals a great deal about its development orientation. The South African state needs to ensure that it develops its capacity to formulate and implement its development goals it a way that ensures and improved economic performance.