- M. Nowak, and Luca Ricci
- Published Date:
- January 2006
©2005 International Monetary Fund
Production: IMF Multimedia Services Division
Cover design: Wendy Arnold
Cover photographs: Elaine Cosser (top) and
Eric Miller/Panos Pictures (bottom)
Typesetting: Alicia Etchebarne-Bourdin
Post-apartheid South Africa: the first ten years/edited by Michael Nowak and Luca
Antonio Ricci—[Washington, D.C.]: International Monetary Fund, 
Includes bibliographical references.
1. South Africa—Economic conditions—1991–2. South Africa—Economic policy. 3. Fiscal policy—South Africa. 4. HIV infections—South Africa. I. Nowak, M. (Michael). II. Ricci, Luca Antonio.
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This book is dedicated to the memory of our friends and colleagues Gunnar Jonsson and Matthias Vocke
Vivek Arora and Luca Antonio Ricci
Thomas Harjes and Luca Antonio Ricci
Luca Antonio Ricci
Ashok Jayantilal Bhundia and Luca Antonio Ricci
Ketil Hviding and Luca Antonio Ricci
Luca Antonio Ricci
Faisal Ahmed and Luca Antonio Ricci
The following symbols have been used throughout this volume:
… to indicate that data are not available;
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
– between years or months (e.g., 2003–04 or January–June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g., 2003/04) to indicate a fiscal (financial) year.
“n.a.” means not applicable.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this volume, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
Ten years after the end of apartheid in South Africa, this book takes stock of how the economy has been managed to address the consequences of apartheid and lay the basis for a durable and broad-based improvement in living standards. It recognizes the many achievements in economic policymaking during this period, while also emphasizing the substantial challenges that remain ahead. The studies in this book provide a perspective of what the authors consider to be the central policy and analytical issues facing the country.
The pace of economic growth has doubled since the end of apartheid and inflation has been brought down to low and predictable levels. The studies here suggest that these favorable trends reflect disciplined macroeconomic policies, diversification of the economy’s productive base, and an opening up of the economy to foreign trade. In the process, the delivery of basic social services has been greatly improved and important gains in welfare have been achieved. Concerted action has also been undertaken to address the incidence of HIV/AIDS, which has taken such a heavy social and economic toll. High growth, however, has yet to be accompanied by a significant expansion in job opportunities; policymakers need to continue to focus on upgrading job skills and reducing labor costs if substantive inroads are to be made in lowering unemployment and alleviating poverty.
The South African authorities deserve much credit for the progress realized over the past ten years. They have rightly recognized that sustaining the process of economic reform requires social cohesion and stability and that policies, such as the Black Economic Empowerment program, are integral to this effort. The achievements are not confined to South Africa. The government has played a pivotal role in establishing the New Partnership for Africa’s Development (NEPAD) and in implementing NEPAD’s shared vision for the continent.
The book was prepared by a team led by Michael Nowak that included Faisal Ahmed, Vivek Arora, Athanasios Arvanitis, Ashok Jayantilal Bhundia, Thomas Harjes, Mark Horton, Ketil Hviding, and Luca Antonio Ricci. The insights contained here will prove invaluable to the IMF’s future work, not only on South Africa, but on emerging market countries more generally.
In preparing this book, the authors would like to thank the South African authorities, particularly the National Treasury and the South African Reserve Bank, for a highly productive and stimulating exchange of views over the past several years. Special thanks go to Trevor Manuel, Tito Mboweni, Maria Ramos, Lesetja Kganyago, X.P. Guma, Ian Plenderleith, Monde Mnyande, Chris Loewald, Elias Masilela, and Johan van den Heever. Ben Smit of the Bureau for Economic Research at Stellenbosch University and Rudolf Gouws of Rand Merchant Bank also deserve mention.
The authors benefited from the support and close collaboration of present and former colleagues in the IMF, including Anupam Basu, Jose Fajgenbaum, Benedicte Vibe Christensen, Saul Lizondo, and Norbert Funke. Gustavo Bagattini, Katia Berruetta, Yvette Conell, Winifred Ellis, Ashwini Jayarathnam, Ramatu Kabia, Laura Leon, Russel Lundbery, and Tonia Takyi-Busia provided excellent research and administrative assistance. Finally, Luca Antonio Ricci and Esha Ray did an outstanding job in coordinating the production of this book.
The opinions expressed here are those of the authors and do not necessarily reflect the views of the South African authorities, the IMF, or IMF Executive Directors.