Question

Please focus only on the variables I have provided as I have been very specific

Question 1

The core elements of the Growth Employment and Redistribution (GEAR) strategy of the South African government in 1996, under the leadership of the then finance minister Trevor Manuel, were amongst other things:

 budget reform to strengthen the redistributive thrust of expenditure

 monetary policy to prevent a resurgence of inflation

 a reduction in tariffs to contain input prices and facilitate industrial restructuring, compensating partially for the exchange rate depreciation

Using the below macroeconomic variables measure whether the strategy was successful or not.

1. gini coefficient or Lorenz curve
2. Inflation rate
3. Exchange rate or BoP accounts

Answer 1