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Events

Structural change, productivity and the middle income trap: South Africa in comparative perspective

03 July 2014
12:30 - 13:30

 Speakers: David Fryer, Nicolette Cattaneo
Rhodes University, Grahamstown

Date:  Thursday, 3 July     Time: 12:30  – 13:30

Venue: VCRs, Pretoria, Cape Town, Durban

This seminar is based on a paper which discusses the problems faced by middle-income countries in the process of catch-up and development, with a focus on the tendency for these countries to fall into a ‘middle income trap’.

It examines the usefulness of the middle income trap concept, as well as how it relates to competing explanations of structural change, productivity growth and development. The paper explores the characteristics and drivers of productivity growth in South Africa and some of its BRICS partners, focusing on the role of structural chang

The paper finds that growth in labour productivity in South Africa has been associated with labour shedding, rising informality and an increase in low value-added service sector employment. This pattern of growth and structural change shares some similarities with the experience of India but less so with Brazil. South Africa should continue to develop a coherent nexus of trade, industrial and technology policies to facilitate learning-by-doing in increasing returns activities. This should be coupled with a stronger alignment to a decent work agenda within a macroeconomic framework that addresses increasing global financialisation and its threats.

This seminar is based on a paper which discusses the problems faced by middle-income countries in the process of catch-up and development, with a focus on the tendency for these countries to fall into a ‘middle income trap’.
 
It examines the usefulness of the middle income trap concept, as well as how it relates to competing explanations of structural change, productivity growth and development. The paper explores the characteristics and drivers of productivity growth in South Africa and some of its BRICS partners, focusing on the role of structural change.
 
The paper finds that growth in labour productivity in South Africa has been associated with labour shedding, rising informality and an increase in low value-added service sector employment. This pattern of growth and structural change shares some similarities with the experience of India but less so with Brazil. South Africa should continue to develop a coherent nexus of trade, industrial and technology policies to facilitate learning-by-doing in increasing returns activities. This should be coupled with a stronger alignment to a decent work agenda within a macroeconomic framework that addresses increasing global financialisation and its threats.

RSVP by 1 July

Cape Town: Ray Adams (021) 466 7936, radams@hsrc.ac.za  12th Floor, Plein Park Building, Plein Street, Cape Town
Durban: Ridhwaan Khan (031) 242 5400, rkhan@hsrc.ac.za   1st Floor, 750 Francois Road, Ntuthuko Junction, Pods 5 and 6, Cato Manor
Pretoria: Arlene Grossberg (012) 302 2811, acgrossberg@hsrc.ac.za  1st  Floor, HSRC Building, 134 Pretorius Street, Pretoria