Prof Kuben Naidoo: Inequality is bad for growth
Kuben Naidoo, former head of the Secretariat of the National Planning Commission in the President's Office and honorary professor in Economics at Stellenbosch University recently delivered a lecture in Stellenbosch to students, university staff and visitors on the topic of inequality and growth. He reviewed recent theoretical and empirical research showing various reasons why inequality, particularly very high inequality such as found in South Africa, is likely having a strong limiting impact on economic growth and carries the potential for further destabilization. He distinguished between income and asset inequality and identified human capital as a particularly important mechanism that perpetuates inequality over time. Especially with regards to the latter, a serious policy challenge exists as the education system has failed in many areas despite a substantial increase in resources being allocated to it.
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BER Weekly
26 Jul 2024Following a string of busy weeks, it was relatively quiet on the local front. Datawise, the most notable release was the consumer price inflation (CPI) print for June. The biggest global data release of the week also came from the US, with GDP coming out much stronger than expected in Q2. It was a(nother) wild week in US politics, with President Joe...
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BER Weekly
26 Jul 2024Following a string of busy weeks, it was relatively quiet on the local front. Datawise, the most notable release was the consumer price inflation (CPI) print for June. The biggest global data release of the week also came from the US, with GDP coming out much stronger than expected in Q2. It was a(nother) wild week in US politics, with President Joe...
Read the full issue