Break away from orthodox economic models: South Africa minister

CAPE TOWN - Countries like China, Malaysia and Japan have come out of recession by following unorthodox methods which South Africa needs to emulate besides breaking away from classical economic models for development, an Indian-origin Cabinet minister has said.

“South Africa needs to break away from orthodox economic models and start focusing on policies that will respond to the country’s development needs,” Economic Development Minister Ebrahim Patel was quoted as saying by BuaNews.

There was a growing picture in the country that many chose to ignore, the minister said. “If you look at this picture, you see this wide gap between the poor and the rich, rising unemployment, and we continue to follow orthodox (economics) instead of looking at what is working for us,” Patel said.

The minister was speaking at the launch Tuesday of his department’s latest initiative ‘Next Economy National Dialogue’, which aims at getting ordinary South African citizens involved in economic development.

The success of countries like China, Malaysia, Japan and even Brazil were proof that orthodox economics was not the only way to go. For the country’s economy to grow, ordinary citizens need to have a say in the formulation of economic policy, Patel said.

“We need growth that is sustainable and that can only be achieved through sustainable jobs and the work we do now should be inspired by a new growth path,” he said.

“Can we find ways to explore new ideas to do what China has done? China has not followed a book nor has Malaysia… South Africans must be able to find answers to their problems,” he said.