The aim of this essay is to examine whether the NDP’s vision for economy and employment can match the SDG (number eight) of economic growth (specifically, promoting inclusive and sustainable economic growth, employment and decent work for all). Furthermore, an analysis is made of the contribution that trade and industrialization can make towards the realization of this vision. In particular, what is examined is the power of the ‘synthetic triad’ of the NDP, the country’s trade policy and its industrial policy as formulated by the Department of Trade and Industry in realizing the vision of economic and employment growth in South Africa.
The paper begins with a description of the visions and their explicit targets, as well as the current empirical reality in South Africa and within the global North. Following this, an examination of the literature on inclusive and labour-absorbing economic growth for developing countries is conducted to provide a conceptual framework – with a focus on the roles of trade and industrialization. Thereafter, the revealed conceptual framework is applied to the case of South Africa, while giving a little attention to the broader case of developing countries apropos the SDG. The conclusion then provides a summarized consolidation of the argument.
The UN SDG number eight (decent work and economic growth) is matched with the NDP vision of employment and economic growth. Particularly, the role of trade and industrialization are assessed in enabling the realization of the goals in South Africa. It is shown that trade and industrialization form the basis for accelerated labour-absorbing economic growth characterized by high productivity and higher incomes. Underpinned by this, a ‘synthetic triad’ of South Africa’s TPSF, NIPF/IPAP, and NDP is key to achieve the NDP goal. ‘Synthetic’ because there is a synthesis between trade policy, industrial policy, and the broader development policy that reflects in the synthesis between the three policy frameworks aforementioned.
Table of Contents
1. Introduction
2. Analysis
2.1. Visions for development
2.2. Trade and industrialization: The inclusive economic growth
2.3. Trade and industrialization in South Africa
2.4. The Constraints
3. Conclusion
Objectives & Core Themes
This paper examines how South Africa's National Development Plan (NDP) vision for the economy and employment aligns with the United Nations' Sustainable Development Goal (SDG) number eight. It specifically investigates the "synthetic triad" formed by the NDP, the country's Trade Policy and Strategy Framework (TPSF), and its industrial policy (NIPF/IPAP) as a catalyst for sustainable, labour-absorbing economic growth and poverty reduction.
- The synergy between national development strategies and international SDG targets.
- The role of trade and industrialization as primary drivers of economic transformation.
- Analysis of industrial policy frameworks (TPSF and NIPF/IPAP) within the South African context.
- Identification of structural constraints to labour-absorbing growth and policy implementation.
Excerpt from the Book
2.2. Trade and industrialization: The inclusive economic growth
Industrial development and industrialization has had a vital role to play in the economic growth of countries like Indonesia, Taiwan, Korea, and China (Kniivila, 2007:295). The reason that industrialization through manufacturing is key is that the manufacturing sector has faster productivity growth that allows for the expansion of productive capabilities, and it plays the leading role in diffusing technological progress throughout the economy (ECA, 2016:31). Due to the higher productivity growth, industrialization is also associated with higher per capita incomes (Timmer and Szirmai, 2000) – which enables the development of a domestic consumption base that supports further economic expansion and employment growth. There is recognition within the traditions of institutional economics, evolutionary economics, and endogenous growth theory that manufacturing (industrialization) is imperative for economic development (Szirmai, 2012) because as economic growth is mainly driven by technological change and innovation that drive productivity growth, and industrialization enables such productivity growth, it follows that industrialization is thus at the heart of modern economic growth (Kniivila, 2007:295). For economic diversification of the production structure and the creation of job opportunities for an ever-growing workforce, industrialization is a key catalyst (ECA, 2015).
Trade growth often goes hand-in-hand with industrialization as it provides an avenue for the increase in domestic production beyond the constraints of domestic demand. In this way, trade supports industrialization. Furthermore, trade (both through imports and exports) provides a key channel for the flow of services required to further improve productive capacity in agriculture, industry and services, the flow of technology, and finance, by connecting global markets to developing-country consumers and producers (UNCTAD, 2014:2). These are needed in turn for structural transformation of economies. When correctly exploited, the creation of jobs, the improvement of living standards, and the efficient use of resources can result from the opportunities brought by international trade (UNCTAD, 2014:1).
Summary of Chapters
1. Introduction: This chapter outlines the paper's aim to evaluate if the South African NDP vision matches the UN's SDG 8, introducing the concept of the "synthetic triad" between development, trade, and industrial policies.
2. Analysis: This section details the development visions of the NDP and SDGs, explores the theoretical importance of industrialization for economic growth, reviews South Africa's specific policy landscape, and identifies current constraints.
2.1. Visions for development: This chapter compares the poverty eradication and employment growth goals of the South African NDP with the UN's 2030 SDG framework.
2.2. Trade and industrialization: The inclusive economic growth: This chapter discusses the theoretical and historical importance of manufacturing and trade as catalysts for economic diversification and productivity improvement.
2.3. Trade and industrialization in South Africa: This chapter analyzes how South Africa utilizes the TPSF, NIPF, and IPAP to align trade and industrial policy with the broader NDP objectives.
2.4. The Constraints: This chapter addresses the challenges of job quality versus quantity and the limitations imposed by international trade agreements on national policy space.
3. Conclusion: This chapter synthesizes the argument, concluding that a well-harnessed "synthetic triad" is essential for achieving South Africa's 2030 developmental goals despite significant global constraints.
Keywords
South Africa, NDP, Sustainable Development Goals, Economic Growth, Employment, Industrialization, Trade Policy, TPSF, NIPF, IPAP, Poverty Reduction, Manufacturing, Structural Change, Synthetic Triad, Labour-absorbing.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the alignment between South Africa’s National Development Plan (NDP) and the United Nations’ Sustainable Development Goal (SDG) 8, specifically concerning economic growth and employment.
What are the central themes explored in the work?
The central themes include the role of trade and industrialization in modern economies, the importance of policy synthesis, and strategies for achieving inclusive, labour-absorbing growth.
What is the primary research objective?
The objective is to examine how the "synthetic triad" of the NDP, trade policy, and industrial policy contributes to realizing economic and employment growth in South Africa.
Which scientific methodology does the paper utilize?
The paper employs a conceptual analysis and literature review approach, applying developmental and institutional economic frameworks to the case study of South African policy documents.
What is discussed in the main body of the text?
The main body evaluates current development visions, the theoretical link between industrialization and inclusivity, the specific application of these policies in South Africa, and the constraints imposed by international frameworks.
Which keywords best describe the paper's content?
Key terms include Synthetic Triad, NDP, SDG, Industrial Policy, Trade Policy, Labour-absorption, Economic Diversification, and South Africa.
What does the author mean by the "synthetic triad"?
It refers to the integrated synthesis between South Africa’s broad development policy (NDP), industrial policy (NIPF/IPAP), and trade policy (TPSF) working in concert.
What specific constraints to industrialization does the author mention?
The author identifies the shrinking "policy space" caused by international agreements, such as WTO regulations (TRIPS, TRIMS, GATS), which limit the autonomy of developing nations to use certain industrial and trade instruments.
- Arbeit zitieren
- Abel Gaiya (Autor:in), 2016, Exploiting the Synthetic Triad of the South African TPSP, NIPP/IPAP and NDP, München, GRIN Verlag, https://www.hausarbeiten.de/document/376783
