The Siren Song of Localisation: Why localisation policy will not lead to industrialisation
- Localisation will not solve SA’s economic challenges, but will deepen them.
- The benefits of localisation policies are concentrated among a few firms, but the costs are borne by many – consumers, down-stream users and tax-payers.
- Because exporting relies on imported components and intermediate goods, localisation policies make it harder to succeed in export markets.
- Industry masterplans exhibit many of the same problems as localisation policy.
