South Africa's response to
the international economic crisis
South Africa is facing difficult economic conditions,
largely as a result of the international economic crisis. In December 2008 the social partners that makes up the Presidential
Economic Joint Working Group, namely organised labour, business
and government, met to consider how South Africans should respond
collectively to the crisis.
A forum convened by Nedlac, in partnership
with the Presidency, have agreed on a collective response to the
challenge facing us. The forum agrees that the economic situation
requires an effective collective response. The response is set out in the Framework for South Africa's response to
the international economic crisis.
On 5 August 2009, the task team briefed President Zuma on their recommendations, which includes an amount of R2,4 billion that will be placed in a National Jobs Fund (see statement).
In the Economic Sectors and Employment Cluster Programme of Action (PoA) media briefing on 11 November 2009, Minister of Rural Development and Land Reform, G Nkwinti, gave feedback on the progress with the initiatives.
All countries across the world are affected by the deepest and most serious economic crisis in at least the last 80 years. The main cause is governments, households and businesses getting too deep into debt.
The economic crisis started in America. Banks and insurance companies in that country lent out more money than they could afford. They also gave too much credit, for example home loans, to people who couldn't afford to pay it back. The result is that these institutions had to cut down on giving credit.
Read more in the March 2009 edition of Vuk'uzenzele.
What can you do when you are hit by the economic crisis?
- Due to the current economic slowdown, many people are struggling to pay off their debt. A debt counsellor can help you work out a budget and discuss a payment plan with your creditors. Find out more in the September issue of Vuk'uzenzele.
Speeches and statements
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