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Govt should create conducive environment for private sector growth – FMF

5th June 2012

By: Idéle Esterhuizen

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The government’s primary economic role is to create an environment in which the private sector can flourish, Free Market Foundation (FMF) director Eustace Davie said Tuesday.

At the FMF’s policy briefing on its submission to the National Planning Commission (NPC) on the National Development Plan (NDP), he suggested that this could be accomplished through less government intervention, legislative certainty and lower taxes, among other.

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The FMF’s submission highlighted the necessity of independent and dedicated mechanisms and institutions in improving the quality of laws.

Davie and executive director Leon Louw shared the foundation’s proposed policies on matters such as employment, electricity and infrastructure, land reform, education, innovation and training, as well as health.

The pair stated that the foundation’s view was that government’s primary function was to achieve the most congenial conditions for interactions between citizens by ensuring their safety.

“This would be achieved if government were to concentrate on keeping its citizens safe, with the accent on a professional, well-trained and impartial police force,a highly efficient, learned and independent judiciary and an army to defend citizens from invasion or the threat thereof,” the suggested.

“If you want growth, you must understand the determinants of growth and you must implement progrowth policies regardless of whether they meet, in the short term especially, developmental goals,” Louw said, speaking of the need for economic growth and job creation.

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“Growth results in full employment, which in the long run ensures ‘decent’ jobs, increased wages, and improved living conditions. Focus on growth, growth, growth (and therefore jobs, jobs, jobs), not income gaps and decent jobs.”

He concluded that Apartheid left a legacy of legislation characterised by disrespect for the principles of good law.

“It is essential to ensure that future laws comply fully with the spirit and letter of the country’s Constitution, and related principles of good law,” Louw urged.
 

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