Fanie Brink- Onafhanklike Landbou-Ekonoom/Independent Agricultural Economist.
The Honourable Minister of Finance, Mr Tito Mboweni, has called on South Africans to send him and his team ideas on how South Africa can boost its economic growth. The Treasury said in a statement on 24 January 2019 that the Minister would like to hear from South Africans about how the country can achieve faster and more equitable growth, and what the government can do differently to grow the economy.1) It is a privilege to have this opportunity and a pleasure to present this submission to the Minister of Finance.
HOW CAN ECONOMIC GROWTH BE CREATED? Fanie Brink – Independent agricultural economist
1. Introduction Economic growth can be regarded as one of the most important pivotal developments around which the general well-being and survival of the whole world revolve. Although being seriously threatened by political instability, terrorism, military confrontations and natural disasters, it remains one of the largest single phenomena upon which the survival of all humanity depends. General knowledge and expertise about the economic growth process are unfortunately limited in many cases, especially where other ideological political and economic systems are pursued such as socialism and communism. A single development that has seriously gone wrong in the world economy, is the general acceptance that all other economic variables, specifically interest rates, but also exchange rates and even economic growth, are more important and have a greater role in the economy to play than the demand and supply of products and services.
The demand and supply determine the market prices, except where the governments interfere in the markets, at which the suppliers of products and services are willing to sell their products to make profits and at which the consumers are willing to buy their products and services. Prices have the very important function in the economy to always try to bring the supply and demand back into a balance at the market equilibrium. The governments in the world should drastically reduce their involvement and interference in the economy and will have to acknowledge and accept that the producers, manufacturers, traders and service providers on the supply side, and the consumers on the demand side, are the largest and most important role players in the economy, as the creators of economic growth, prosperity and progress in the world.
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