Fiscal sustainability and the South African transformation challenge

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Periodical article

Title:	Fiscal sustainability and the South African transformation challenge
Authors:	Fourie, F.C.v.N. Burger, P.
Year:	2003
Periodical:	South African Journal of Economics
Volume:	71
Issue:	4
Pages:	806-829
Language:	English
Geographic term:	South Africa
Subjects:	fiscal policy economic development economic policy
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2003.tb00097.x/pdf
Abstract:	South Africa's economy faces two transformation processes: globalize successfully and achieve sustainable development. To enter the globalized economy and attract foreign investment government needs to run an 'acceptable' deficit in terms of conventional rules for fiscal sustainability. However, this policy may prove to be politically unsustainable due to non-performance on the development, basic needs and social services fronts. South Africa appears to face a genuine dilemma, unable to achieve success simultaneously on both sustainability fronts required: fiscal sustainability and sustainable development. The question is whether there is any way out of the 'twin sustainabilities' predicament. This paper focuses on human capital development as a source of economic growth and demonstrates that it provides a way to ease the apparent tension between the goals of fiscal sustainability and sustainable development. Bibliogr., notes, ref. [ASC Leiden abstract]