Post by cjm on Oct 26, 2016 6:20:55 GMT
Anthea Jeffery: Actively inviting a ratings downgrade?
The ANC knows very well what it needs to do to avoid a ratings downgrade to junk status in December this year. However, it’s not taking the necessary steps. On the contrary, it’s still pushing for policy shifts that will further stifle growth; it’s still seeking to push up public spending in key spheres; it’s still doing little to turn failing state-owned enterprises (SOEs) around; and it’s still encouraging Eskom to embark on a trillion-rand nuclear spending spree. It’s also busy undermining the National Treasury, the institution most vital to South Africa’s economic credibility. In addition, much as it disclaims responsibility, it’s also done much to unleash the violent student protests now further eroding the country’s political stability.
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The ANC knows very well what it needs to do to avoid a ratings downgrade to junk status in December this year. However, it’s not taking the necessary steps. On the contrary, it’s still pushing for policy shifts that will further stifle growth; it’s still seeking to push up public spending in key spheres; it’s still doing little to turn failing state-owned enterprises (SOEs) around; and it’s still encouraging Eskom to embark on a trillion-rand nuclear spending spree. It’s also busy undermining the National Treasury, the institution most vital to South Africa’s economic credibility. In addition, much as it disclaims responsibility, it’s also done much to unleash the violent student protests now further eroding the country’s political stability.
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