In spite of policy statements prioritising labour-absorbing growth, de facto support has favoured heavy industry and been damaging for employment. Industrial policy should be less concerned with ‘beneficiation’ and technological upgrading and more concerned with promoting economy-wide efficiency. In the context of massive unemployment, this means tilting the playing field towards labour-absorbing growth to mobilise the huge potential of an under-employed and poorly-skilled workforce.
Written by Anthony Black, Professor, PRISM and School of Economics, University of Cape Town
This article was first published on the Econ 3x3 website