NEVA MAKGETLA: SA’s commodity dependency contributes to inequalities
We need to find ways to diversify the economy in terms of production and to create opportunities
For the past 30 years the mining chain has contributed 60% of all SA exports, and agricultural products another 10%. That commodity dependency has largely defined overall growth, while shoring up the profound inequalities entrenched under apartheid. Yet often economic policies in effect ignore it.
Internationally, commodity dependency — especially on mining products — is generally considered a mixed blessing. The standard criticism is that it leaves countries vulnerable to extreme global price swings. For instance, the dollar price of coal climbed sixfold from 2020 to 2022, then plummeted below its 2020 level in early 2023. That is an exaggerated version of the rollercoaster mineral and some food prices have seen since the start of the Covid-19 pandemic, after a decade of stagnation. ..
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