Going for Growth HSF — GIBS Economic Policy Conference 2008 the Helen Suzman Foundation
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GOING FOR GROWTH HSF — GIBS Economic Policy Conference 2008 The Helen Suzman Foundation The Helen Suzman Foundation seeks to promote constitutional liberal democracy and human rights. As an active member of South African civil society, The Helen Suzman Foundation contributes to debates on contemporary events and institutional challenges that form part of efforts to consolidate democracy. The sole objective of The Helen Suzman Foundation Trust is to conduct public benefit activities in a no-profit manner by: • Carrying out and commissioning research into political, social and economic affairs in South Africa and elsewhere in order to provide information and to stimulate debate on issues relevant to the future of democracy in South Africa. • Publishing a journal, Focus, as a vehicle for information and comment on issues relevant to the future of democracy in South Africa; • The arrangement of and attendance at roundtables and conferences on matters related to politics and governance in or of relevance to South Africa; • Advocating measures designed to promote the ideals of liberal constitutional democracy in South Africa, including the improvement of race relations and the combating of any discrimination on the grounds of race, gender, pregnancy, marital status, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, belief, culture, language or birth. • Forging relations with other actors in civil society that seek to protect liberal constitutional democracy and human rights. Contact Details Tel +27 11 646 0150 Fax +27 11 646 0160 Email [email protected] Website www.hsf.org.za Postal address Postnet Suite 130, Private Bag X2600, Houghton, 2041, South Africa Physical address Block A, Anerley Office Park, 7Anerley Road, Parktown, 2193, Johannesburg CONTENTS Profiles PAGE 2 Global Turmoil, Local Growth PAGE 6 Local Growth Guest Speaker: Professor Lawrence Summers — Charles W Eliot University Professor of Harvard University Welcome PAGE 11 Co-Hosts: Nick Binedell (GIBS) and Raenette Taljaard (HSF) Setting the Scene: Our Growth History PAGE 13 Professor Johannes Fedderke — Head of the School of Economics (UCT) Going for Growth I: Accelerating Macro-Economic Reform PAGE 23 Professor Raymond Parsons • Professor Charles Simkins • Dr Azar Jammine The Helen Suzman Foundation and Gordon PAGE Institute of Business Science Going for Growth II: Accelerating Micro-Economic Reform 39 held a thought-provoking Dr Neil Rankin • Professor Stephen Gelb • Professor Johannes Fedderke Conference where we probed how we can continue our country’s growth trajectory Global Turmoil: Emerging Market Impact PAGE 53 amidst global turmoil and local challenges. Guest Speaker: Martin Wolf — Associate Editor and Chief Economic Editor Financial Times Drawing Strands Together: Opportunities and Challenges PAGE 62 Minister of Finance: Trevor Manual, MP Annexure A: Harry Oppenheimer Memorial Lecture PAGE 68 Former President of Brazil: Fernando Henrique Cardoso Annexure B: Relevant material PAGE 73 G20 Press Statement from the White House This event was supported by Annexure C: Report-back from G20 meeting in Parliament PAGE 78 Minister of Finance: Trevor Manuel, MP Annexure D: Press Coverage PAGE 82 1 PROFILES PROF LAWRENCE H SUMMERS NICK BINEDELL MS RAENETTE TALJAARD CHARLES W ELIOT UNIVERSITY PROFESSOR OF FOUNDING DIRECTOR AND SASOL CHAIR OF DIRECTOR, HELEN SUZMAN FOUNDATION HARVARD UNIVERSITY STRATEGIC MANAGEMENT OF THE GORDON INSTITUTE OF BUSINESS SCIENCE (GIBS) Lawrence H Summers is President Emeritus After an initial career in the mining and Raenette Taljaard is the Director of the of Harvard University and former Nathaniel manufacturing industry, in sales and general Helen Suzman Foundation. Ms Taljaard, Ropes Professor of Political Economy, and management in the Barlow Rand Group, a former Democratic Alliance Member of in the past decade has served in a series Nick has focused his career for the past 20 Parliament, served as Shadow Minister of senior public-policy positions, including years on the area of business education of Finance from 2002 and was a member Secretary of the Treasury of the United In 1998 he was invited to establish a new of the Portfolio Committee on Finance. States, from 1999 to 2000. He was recently business school focused on meeting the She also served on numerous other named as President-elect Barack Obama’s individual and corporate needs of business parliamentary committees, including the choice to head the National Economic in South Africa. Standing Committee on Public Accounts Council, which will make him the new The school has rapidly established during the arms deal investigation. president’s chief economic adviser. itself as a leading business school in South Ms Taljaard lectures part-time at the He holds a BSc degree from the Africa with a strong focus on partnering University of the Witwatersrand’s School Massachusetts Institute of Technology and with leading South African corporates of Public and Development Management, was awarded the PhD from Harvard in 1982. and providing a high level of local and and locally and abroad on the regulation of His various public-policy positions international business education. It was private military and security companies. include serving as a domestic policy recently ranked as one of the top 40 global She is a Yale World Fellow, a Fellow of economist for the President’s Council of executive-education providers by the the Emerging Leaders Programme of the Economic Advisors (1982); Vice-President London Financial Times. Centre for Leadership and Public Values of Development Economics and Chief His academic qualifications include a (University of Cape Town’s Graduate School Economist of the World Bank (1991); PhD from the University of Washington in of Business and Duke University), a Young and Undersecretary of the US Treasury Seattle, an MBA from the University of Cape Global Leader of the World Economic for International Affairs (1993). In 1999, Town and a BCom degree from Rhodes Forum, and an ALI Fellow of the Aspen the United States Senate confirmed Prof University. Institute. Summers as Secretary of the Treasury. His area of expertise is business She holds a BA in Law and a BA (Hons) In 2001, Prof Summers took office as strategy formulation and his academic in Political Science, cum laude, and an the 27th president of Harvard University. On and consulting work, although dominantly MA in Political Science, cum laude, from the conclusion of his tenure as president, performed in South Africa, includes work in the Rand Afrikaans University (University Prof Summers accepted a position as the United States, Europe and Australia. of Johannesburg); and an MSc in Public a university professor. Additionally, Prof Administration and Public Policy, cum Summers is a part-time Managing Director laude, London School of Economics and of the DE Shaw Group and serves on Political Science. several boards. Ms Taljaard publishes widely. He has received many awards, including the annual Alan T Waterman Award of the National Science Foundation and the John Bates Clark Medal. Prof Summers publishes widely. 2 PROFILES PROF JOHANNES FEDDERKE DR AZAR JAMMINE PROF RAYMOND PARSONS HEAD OF THE SCHOOL OF ECONOMICS, UNIVERSITY DIRECTOR AND CHIEF ECONOMIST ECONOMETRIX NEDLAC OVERALL BUSINESS CONVENER AND OF CAPE TOWN ECONOMIC CONSULTANT TO BUSINESS UNITY SOUTH AFRICA (BUSA) Prof Fedderke holds BCom and BCom Dr Jammine matriculated at Pretoria Boys’ Raymond Parsons presently teaches at the (Hons) degrees from the University of Natal; High School, after which he did a BSc Department of Economic and Management and an MPhil in the Faculty of Economics (Hons) in Mathematical Statistics at the Sciences at the University of Pretoria. He and Politics and a PhD in Economics from University of the Witwatersrand. is also currently the Overall Business the University of Cambridge. During the period 1970–75 he was Convenor at the National Economic In 2004 Prof Fedderke became Professor employed as an investment analyst at Development and Labour Council. He is of Economics at the University of Cape Senbank and subsequently at stockbrokers a key contributor to public and academic Town. Prior to this appointment he held the Martin & Co, now JP Morgan. During debate on a broad spectrum of issues of position of professor at several universities, this time he completed a BA (Hons) in critical importance to the political economy including Oxford University and the Economics, cum laude, part-time at Wits. of South Africa. University of the Witwatersrand. He has also In 1976, Dr Jammine completed his MSc Prof Parsons studied economics at the lectured at City University, London and at in Economics at the London School of Universities of Cape Town, Oxford and the University of Natal. Economics, followed by his PhD at the Copenhagen, before playing a leading role Prof Fedderke serves on the editorial London Business School, after which he in organised business in South Africa for boards of several economic journals, was awarded a two-year Post-Doctoral many years. He is a former Director-General including the South African Journal of Fellowship at the Centre for Business of the SA Chamber of Business. From Economics and Economic Modelling. Strategy of the school. In order to pay his 2000–03 he was a Visiting Professor at the He was the Convenor of the National way while working on his PhD, Dr Jammine School of Economic and Business Sciences Research Foundation Assessment Panel for used his knowledge of six languages to at the University of the Witwatersrand. Economics, Management, Administration conduct numerous international business- He is also an Honorary Professor in the and Accounting for 2004–2005. consultancy projects in various countries. Department of Economics and Economic He has also done work for the South Dr Jammine returned to South Africa History at the Nelson Mandela Metropolitan African Parliamentary Sub-Committee on in December 1985 to take the position University, and holds an Honorary Finance and provided training courses in of Director and Chief Economist of Doctorate from that university.