| HBS Case Collection
(Revised from original 2011 version)
South Africa (B): Getting Unstuck?
15 years after ending apartheid, formal unemployment in South Africa was still at 24%. While the country had grown at 4 to 5% annually during the 2000s, the financial crisis set it back by 1 million more unemployed. Moreover, it seemed as if the nation were stuck between low wage and fully developed competitors. The government of Jacob Zuma has just adopted a "New Growth Path," hoping to create several million jobs over the next few years. Both the Finance Minister and the head of the Central Bank support the initiative, but worry how they can sustain fiscal discipline and control inflation, in light of these stimulative policies. Organized labor, meanwhile, has little sympathy for any sort of sacrifice.
Keywords: Financial Crisis;
Inflation and Deflation;
Vietor, Richard H. K., and Diego Comin. "South Africa (B): Getting Unstuck?" Harvard Business School Supplement 711-085, December 2012. (Revised from original April 2011 version.)