Some Development Issues and Debates

Greenwell Matchaya, PhD Feedback to: greenwellmatchaya@yahoo.com Introduction : The current government’s effort to get the economy out of the economic problems at hand are commendable and the effort put in authoring the Economic Recovery Plan have to be celebrated as an indicator that probably someone somewhere out there is contemplating of doing something. Having said that , it ought to be said without fear of contradiction that some, if not most of the plans in the recovery plan do not appear to be founded on any solid economic/development theory or empirics. This response to the economic recovery plan is not exhaustive and must not be interpreted as an attempt to undermine government efforts in its bid to get the economy back on its ‘two’ feet, but purports to point at a number of issues that need clarifications, for the betterment of all of us. The comments below are based partially on the understanding that we are in these problems due to the economy’s fai...

In a debate on airlines and efficiency with a colleague aboard American airlines some time back, I vehemently argued that high prices characteristic of SA airlines were symptomatic of structural as well as efficiency problems and that sustainability was questionable given the stronger competition from KA, ET, etc. so the loss did not surprise me....Again, i should say now: The high auto prices in SA is an efficiency, labour wage, union power, and credit market issue...given low GDP pc such prices are unsustainable...either the financial market crashes, or the have-notes will bring econ activity to a halt...give this prophecy some time..it will come to pass Ceteris paribus. For one car in SA, you lose too new cars in UK and US!