Transformation and development towards a fully inclusive society and economy in the City of Johannesburg, South Africa

  • 1044 Views
  • 195 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

This paper analyzes the state of economic growth and development in the City of Johannesburg (COJ) South Africa as by the year 2016 and presents a case for transformation and development of the City towards a fully inclusive economy and society. The research reveals that faster and sustainable economic growth in addition to proactive pro-equity policies are a sine qua non for inclusive growth and participation in the City, where the triple challenges of poverty, inequality and unemployment persist more than 20 years into the democratic dispensation. During the last 17 years the City economy has grown at almost the same pace as the national South African economy with a trend reflective of major world economic events. Going forward, the South African economy is projected to grow at less 2% annually in the next 3 years. In terms of the City, the prognosis is that the City will either continue to trace the national economic growth rate or decline from 2% in 2016 to 1% in 2018. In order to achieve the objectives and goals of the Johannesburg 2040 Growth and Development Strategy in the long term and the City Integrated Development Plan in the medium term, the City leadership and administration will need to begin by not only addressing factors that inhibit economic efficiency including crime and corruption, but also the provision of a critical pipeline of skills required by industry in order to attract local and international investment. The increase in investment is expected to broaden the revenue base and to strengthen the financial capacity of the City to roll out services to the previously disadvantaged communities so as to bring them into the mainstream of economic empowerment and social transformation.

view full abstract hide full abstract
    • Fig. 1. Theoretical model for inclusive economic growth
    • Fig. 2. Year on year GDP growth rate, 2010 constant prices SA and COJ
    • Fig. 3. COJ primary, secondary and tertiary sector structural change 1996-2017
    • Fig. 4. Overview of growth of all economic sectors in COJ: 2010 R’000 constant prices
    • Fig. 5. Gross value added composition of the COJ 2014
    • Fig. 6. COJ formal employment trends 10 sectors 1996-2014
    • Fig. 7. The unemployment rate by metro 2015
    • Fig. 8. Growth in the number of persons/households in the different income categories census 2001/2011
    • Fig. 9. Major city revenue and income sources
    • Fig. 10. COJ capital expenditure budgets
    • Fig. 11. COJ gross fixed investment per broad sector
    • Fig. 12. The COJ import and export trends 2004-2014 current prices
    • Table 1. Doing business in Johannesburg in comparison to other South African metros
    • Africa Progress Panel. (2014). Africa Progress Report. Grain Fish Money. Financing Africa’s Green and Blue Revolutions. Geneva.
    • Africa Development Bank et al. (2015). Africa Economic Outlook – South Africa. Abidjan.
    • Bureau of Market Research. (2015). City of Johannesburg Business Satisfaction Survey. Pretoria.
    • Bureau of Market Research. (2015). Macroeconomic and Retail Trade Sales Forecast for South Africa. Pretoria.
    • Bureau of Market Research. (2016). South Africa Manufacturing PMI 1991-2016 Data. Pretoria.
    • eThekwini Metro. (2013). eThekwini Manufacturing Survey 2013. Durban.
    • eThekwini Metro. (2016). State of the eThekwini Economy. Durban in the Global Economy. Durban.
    • Floater, G. et al. (2014). Cities and the New Climate Economy.
    • International Council for Science et al. (2015). Review of Targets for the Sustainable Development Goals: The Science Perspective. Paris.
    • International Monetary Fund (IMF), January. (2016). World Economic Outlook Update. Washington DC.
    • Lewitt, S. (2002). Explaining the Johannesburg 2030 strategy. Presentation by the City of Johannesburg. Johannesburg.
    • McKinsey Global Institute. (2012). Urban World. Cities and the Rise of the Consuming Class. New York.
    • Organization for Economic Cooperation and Development (OECD). (2012). Looking to 2060: Long-term global growth prospects. OECD Publishing. Paris.
    • PricewaterhouseCoopers (PWC). (2015). The World in 2050. Will the shift in global economic power continue? London.
    • South African Chamber of Commerce and Industry. (2016). Reticent Business Confidence. Johannesburg.
    • South African Reserve Bank. (2016). Selected Forecast Results of the Monetary Portfolio Committee Meeting March 2016. Pretoria.
    • Statistics South Africa. (2016). Gross Domestic Product 4th quarter 2014. Tourism Satellite Account for South Africa from 2012 and Provisional for 2013 and 2014. Pretoria.
    • Statistics South Africa. (2016). Gross Domestic Product 4th quarter 2015. Pretoria.
    • Statistics South Africa. (2016). Quarterly Labor Force Survey 2015. Pretoria.
    • The City of Johannesburg Metropolitan Municipality. (2012). A Promising Future. The Johannesburg 2040: Growth and Development Strategy. A World Class African City. Johannesburg.
Related Articles

  • Impact on poverty and income inequality in Malaysia’s economic growth

    Rabiul IslamORCID Researcher ID, Ahmad Bashawir Abdul Ghani , Irwanshah Zainal Abidin , Jeya Malar Rayaiappan doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
    Problems and Perspectives in Management Volume 15, 2017         Issue #1         pp. 55-62 Views: 11845 Downloads: 5652 TO CITE АНОТАЦІЯ

    Poverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.

  • Impact of inflation on economic growth: evidence from Nigeria

    Anthony Olugbenga AdaramolaORCID , Oluwabunmi Dada doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
    Investment Management and Financial Innovations Volume 17, 2020         Issue #2         pp. 1-13 Views: 8996 Downloads: 5249 TO CITE АНОТАЦІЯ

    In an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.

  • Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe

    Serhiy KozmenkoORCID , Maxim KorneyevORCID Researcher ID doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
    Accounting and Financial Control Volume 1, 2017         Issue #1         pp. 48-58 Views: 7839 Downloads: 1371 TO CITE

    The article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.

Download Preview
Close
Public and Municipal Finance
Public and Municipal Finance