The legacy of apartheid is evident in the pervasive distortions in all factor markets: for labor, as evident in the scale and persistence of unemployment and inadequate investment in human capital; for capital, in the low savings/investment rates and limited FDI; and for land, where land reform and rural development efforts must reverse policies that over decades have virtually eliminated the smal. [...] The breadth of financial products and services is unparalleled in other emerging market economies, and there is depth as well: the stock market is the 13th largest in the world, and the bond market offers first-world size and liquidity. [...] In contrast, the unemployment rate for highly skilled workers has been 5 The terms “flexible” and “inflexible” as descriptions of the labor market gained popularity in the 1980s as analysts sought explanations for diverging trends in unemployment between the EU and the U. [...] The breadth of financial products and services is unparalleled in other emerging market economies, and there is depth as well: the stock market is the 13th largest in the world, and the bond market offers first-world size and liquidity. [...] These changes have been motivated by the challenges posed by globalization, as well as the recognition that the financial sector needs to adapt in order to address the problems created by decades of neglect of the needs of a majority of the population.
- Pages
- 103
- Published in
- South Africa
