Reserve Bank governor says he doesn’t get ‘radical economic transformation’

South African Reserve Bank (Sarb) governor Lesetja Kganyago has reportedly questioned the governing African National Congress’ (ANC) concept of radical economic transformation, saying he does not understand what the buzzword means.

Responding to a question on Tuesday evening from an audience member at a public lecture on monetary policy at the University of KwaZulu-Natal’s Westville Campus, Kganyago said he could not fathom the idea even after reading economic literature, the Sunday Times reported.

“As an economist‚ whenever a concept is introduced‚ I try and delve through the literature to find what are the positives of this concept and what does it mean. As it stands‚ after going through the literature‚ I am none the wiser‚” Kganyago was quoted as saying.

He said the closest concept he could relate radical economic transformation to was inclusive economic growth that had gained popularity after the 2008 global economic crisis.

“It’s a concept that is used by everyone, and it also means the same that we are talking about here. What are the income distribution issues in our country‚ how is land distributed‚ what are the ownership structures‚ how is corporate governance in the country taking place‚ how is capital distributed in the country and so forth‚ and so forth.

“And do the majority of citizens have a stake in the economy‚ either in the form of a job or in the form of ownership or in the form of some meaningful economic activity? And everywhere in the world it is called inclusive growth. Why we complicate it in South Africa‚ I do not know,” Kganyago said.

He said the Sarb was working to ensure inclusive economic growth in the country by bringing inflation down because it distorted the distribution of income.

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