Overview of the economy and economic policy

Abstract

This chapter provides a high-level review of the economy's performance and key policy development for the period 2001-2003. The focus is on economic performance and policy in relation to the demand for labour, and hence as they pertain to human resource development. From a performance perspective the chapter shows that economic growth was resilient despite a global slow-down and dramatic exchange rate fluctuations. From a policy perspective the chapter shows that, despite policy deepening and some expansion of direct government policies, the growth model adopted in 1994 remains fundamentally unchanged. The overall conclusion of the chapter is that the high-skills, technology-intensive growth path supported by the government will fail to relieve unemployment in a meaningful way unless human resource development initiatives are able to bridge the skills gap between the skills profile of the unemployed and the skills demanded by this economic growth path.