Fifteen years after the end of apartheid in South Africa was formally unemployment still at 24%. While the country had grown annually during the 2000s at 4 to 5%, the financial crisis set back to 1 million more unemployed. In addition, it is as if the nation between low-wage and mature competitors seemed stuck. The government of Jacob Zuma has just adopted a “New Growth Path” in the hope of creating several million jobs over the next few years. Both the finance minister and the head of the Centr … Read more »

Fifteen years after the end of apartheid in South Africa was formally unemployment still at 24%. While the country had grown annually during the 2000s at 4 to 5%, the financial crisis set back to 1 million more unemployed. In addition, it is as if the nation between low-wage and mature competitors seemed stuck. The government of Jacob Zuma has just adopted a “New Growth Path” in the hope of creating several million jobs over the next few years. Both the finance minister and the head of the central bank supports the initiative, but worried about how to obtain budgetary discipline and control inflation, in light of these stimulatory measures upright. Organized labor, meanwhile, has little sympathy for any kind of sacrifice.
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from
Richard H.K. Vietor,
Diego Comin
Source: Harvard Business School
28 pages.
Release Date: 14 April 2011. Prod #: 711084-PDF-ENG
South Africa (A): Stuck in the Middle? HBR case solution

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