South Africa

After successful free elections in April 1994, South Africa was readmitted to the international community, following years of international isolation imposed on the country due to its racially motivated apartheid policies. Since then, trade liberalization has been accompanied by responsible monetary and fiscal management, and South Africa has continuously recorded moderate economic growth. Inflation has been within target, and the budget deficit has been falling in recent years. The government has also channelled an important amount of resources to social programs and services. Yet despite bold policy changes, the economy has failed to grow in sufficient amounts to make inroads into high unemployment and poverty (Hoogeveen and Özler, 2005).

Related Subject(s): Economic and Social Development

Countries: South Africa