Download Successes and shortcomings of the RDP

Successes and shortcomings of the RDP
4 Main ideas of the RDP:
• To provide the basic need ( houses, water and electricity) for all the citizens.
• Education and training should be available to everyone.
• To improve the way the economy works.
• To make South Africa a democratic country.
Why is the RDP abandoned?
→ Lack of money to fulfil all the plans.
→ Large amount of debt incurred by previous government.
→ Low levels of savings and economic growth, so this new spending needed for the RDP could not be funded.
→ It was then decided to focus on stabilising the economy in the short term and growing it in the long term.
→ This was called GEAR (Growth, Employment and Redistribution).
GEAR (Strategy for Growth, Employment and Redistribution):
 Unemployment is a big problem in our country. Therefore GEAR is implemented.
 Viewpoint of GEAR: to stimulate the economy so that employment can increase and people can then pay for water, electricity and
housing so that it can be provided on sustainable basis.
 Result: economic stability, but economic growth and job creation was not at the level wished-for.
ASGISA (Accelerated and Shared Growth Initiative):
 Objective: economic growth of 6% or more per year.
 What has been done: 1) labour laws were changed so that people can be hired and fired easily.
2) increased government spending on infrastructure needed for economic growth.
E.g. transport system between Gauteng, Durban and Richards Bay is improved and Durban and Richards
Bay ports were enlarged.
SUMMARISE THE SUCCESSES AND SHORTCOMINGS OF THE RDP IN YOUR BOOK