South Africa (A): Stuck in the Middle Harvard Case Solution & Analysis

Fifteen years after the end of apartheid, the formal unemployment in South Africa is still at 24%. While the country has increased by 4 to 5% annually during the 2000s, the financial crisis to set it back to 1 million more unemployed. Moreover, it appears that the nation is caught between low-wage and fully developed competitors. Jacob Zuma, the government has just adopted a "new growth path", hoping to create a few million jobs over the next few years. Both the Finance Minister and Central Bank support the initiative, but worry about how they can maintain fiscal discipline and control of inflation, in the light of enabling policies. Organized labor, however, has little sympathy for any victim. "Hide
by Richard HK Vietor, Diego Comin Source: Harvard Business School 28 pages. Publication date: April 14, 2011. Prod. #: 711084-PDF-ENG

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