Shared growth can only be possible for an unequal society like South Africa if there is a national consensus on how to deal with the most pressing challenges facing society: unemployment, inequality and the prevalence of disease.
In Gauteng, 69% of the budget goes towards education, social development, health. The other 31% is poured into the economy to stimulate growth. This is key to shaping shared growth in a developmental state – an acceptable split between the provision of social services and economic growth.
The state has a major role to play in the process of social reconstruction and economic development, the major task at the moment being building the organisation and capacity of the state.
Collectively, South Africa needs to discover how the developmental state can allocate resources in such a way that it meets the challenge of stimulating growth while at the same time addressing issues such as the provision of social services.