Got so thrilled today reading two article from of one the main media houses about the localisation and import substitution policy strategy for the South African economy.
First, the two articles appeared on the same day in the same publication - what are the chances!
Secondly, one article reads like the textbook argument of the mainstream economics - the usual stuff:
• Restricts investment;
• Import substitution that is biased against exports;
• Uncompetitive by restricting imports;
• Lack of foreign know-how constraints innovation;
• Violates international trade commitments; and
• Encourages rent-seeking behaviour.
Thirdly, the other article makes the case for the localisation and import substitution based on the real experience by a local manufacturing company – very practical:
• Sourcing locally makes business sense and is less complicated;
• Localisation allows for flexibility (i.e., quick changes and customisations)
• Import substitution has the potential to boost innovation, skills (engineering) and the economy.
The articles reminded me of my teaching days – would have been an interesting topic for classroom debate and of course a great examination question!
NB: I don't know what "it's chae" mean - my son says that a lot when he is happy about something!😀
