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Country analysis > South Africa Last update: 2020-07-02  


Readings on the Second Economy

28/08/03 - 24/05/04

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  • ANC Today, Letter from the President
    Characteristics of South Africa's first and third world economies

  • Address by President Thabo Mbeki to the National Council of Provinces
    The second economy, what it is and what is needed to meet the growth and development challenges it presents

  • Budget speech by Minister of Finance, Trevor Manuel, to the National Assembly
    Budgetary initiatives for bridging the divide between the first and second economies

  • Address by Minister in the Presidency, Essop Pahad to the Enterprise Development Forum
    The importance of Black Economic Empowerment for linking the first and second economies

  • The Presidency: Reviewing Ten Years of Freedom
    Using scenario planning to develop proposals to bridge the divide between the first and second economies

  • Budget Speech by MEC J Mabena: Mpumalanga Provincial Government
    Initiatives in Mpumalanga Province to address the challenges of the second economy

  • State of the Nation Address by President Thabo Mbeki to the Houses of Parliament
    Ensuring that the first economy generates the resources to deal with the challenges of the second economy

  • Interview with President Thabo Mbeki on SABC2 by Redi Direko and John Perlman
    Specific interventions addressing the second economy and ways in which ordinary people have benefited from government programmes

  • Address by Premier IW Direko at the opening of the Free State Legislature
    Using government tenders and procurement to promote Black Economic Empowerment and SMEs

  • Budget speech by Minister of Finance, Trevor Manuel, in the House of Assembly
    Priorities for accelerating the pace of growth and job creation

  • Eastern Cape budget speech by the MEC for Finance, Economic Affairs, Environment and Tourism, Enoch Godongwana
    Eastern Cape initiatives including Black Economic Empowerment, public works, industrial development zones and agriculture

  • Limpopo Province Budget speech by the MEC for Finance and Economic Development, Thaba Mufamadi
    Measures to address poverty

  • Speech by the Minister of Public Works, Stella Sigcau, to the National Council of Provinces
    The Expanded Public Works Programme

  • Address by President Mbeki at the Opening of the Expanded Public Works Programme in Limpopo Province
    Origins of underdevelopment in the former native reserves, nature and aims of the EPWP

  • Address by President Thabo Mbeki to the first joint sitting of the Third Democratic Parliament
    Detailed programmes to build the first and second economies

  • Economic and Employment Cluster Parliamentary Media Briefing by Minister of Trade and Industry, MP Mpahlwa
    Targeted interventions focusing on human resources, the labour market, public works and land and agriculture

  • Closing Remarks by Dr Jean Benjamin, Deputy Minister of Social Development at the Conference on Overcoming Underdevelopment In South Africa`s Second Economy, Pretoria

The second economy has become an important element in the South African government's development of policy and plans to combat poverty. SARPN has compiled these readings to provide a guide to government's thinking and how this is being translated into action. Some of the elements covered include:

The first economy is:

  • Modern,
  • Integrated with the global economy, and
  • Produces the bulk of the country's wealth
The second economy is:

  • Underdeveloped,
  • Isolated from the first and global economies,
  • Contains a large percentage of people including the urban and rural poor, and
  • Contributes little to the country's wealth
The two economies need different strategies but:

  • Transforming the second economy requires transfers from the first economy
  • The first economy is unsustainable without the integration of the second economy
Growth and development strategies for the second economy include:

  • Rural development and urban renewal
  • Development of small and medium enterprises and co-operatives
  • Black economic empowerment
  • Expansion of micro-credit
  • An expanded public works programme
  • Learnerships and internships for the unemployed
  • Improvement of the education system to provide useful skills
  • Training and deployment of community development workers

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