Unpacking SA’s Foreign Economic Engagements:

Transcript:Unpacking SA’s Foreign Economic Engagements::
Unpacking SA’s Foreign Economic Engagements: Aligning to and Addressing the socio-economic challenges of Inequality, Poverty and Unemployment Presentation PC on International Relations and Cooperation 16 February 2022 By Institute for Global Dialogue The Mainstream Optics: Foreign Economic Relations The focused has been since 1994 focused on generating investment opportunities and improving confidence in South African markets. Export led growth model but what been the linkages back into the domestic value demand and supply value chain What do investors remain want? - Security of interests - But also policy certainty Foreign Economic Objectives align to - The Growth with Development Approach Versus - The Growth Through Development Approach The bigger global structural question is whether the model of foreign economic engagements serves markets and hence the trickle down effect to development Or should there be a more state centric approach? This has been the debate since the introduction of Reagan and Thatcherite economics So what we essentially dealing with is what model works best. This is best captured by the book by Guy Standing called The Precariat The Developmental Agenda Approach The Developmental Agenda Conundrum What is the Precariat? The Precariat: Today's Transformative Class? Guy Standing October 2018 Since 1980, the global economy has undergone a dramatic transformation, with the globalization of the labor force, the rise of automation, and—above all—the growth of Big Finance, Big Pharma, and Big Tech. The social democratic consensus of the immediate postwar years has given way to a new phase of capitalism that is leaving workers further behind and reshaping the class structure. The precariat, a mass class defined by unstable labor arrangements, lack of identity, and erosion of rights, is emerging as today’s “dangerous class.” As its demands cannot be met within the current system, the precariat carries transformative potential. To realize that potential, however, the precariat must awaken to its status as a class and fight for a radically changed income distribution that reclaims the commons and guarantees a livable income for all. Without transformative action, a dark political era looms. https://greattransition.org/publication/precariat-transformative-class Where does SA fit in this evolving global economic order? The Dilemma has been translating our export led growth model into viable transformative growth strategy that creates jobs, stimulates opportunities and addresses the socio-economic challenges of the developmental state Here is where our Foreign economic relations needs to be clarified between the trade strategy versus the economic led growth strategy versus