Question

Construct a discussion on the different ways that government intervenes in your country( South Africa ). Support your discussion by citing real life examples of such intervention from reliable sources.

Answer 1

The government intervenes in South Africa in various ways, with a drastic increase in intervention led by the pandemic. It has tried to enhance market stability by increasing the overall demand via unemployment insurance funds. Additional funding in order to improve the health infrastructure. Provision of tax subsidies. Increasing access to funds for SME's and small scale farmers. Deferment in tax liabilities and custom duty rebates. It has also focused on export control measures and regulations towards price control mechanisms, especially with regards to essential goods and services.

It has also tried to intervene in terms of facilitating sustainable development measures, it has tried to intervene in matters of social, economic and environmental concerns. It has set a national framework where it is trying to focus on substantive principles such as efficient use of natural resources, basic human needs being met, social equity, and integration and innovation in the marketplace.

The government spends more than 60% of its yearly national budget on social welfare programs, thus there is an excessive level of intervention by the government as most of its population is exposed to poverty and unemployment.

Source: IMF: Policy responses to Covid.

Department of Environment, Forestry and Fisheries - Republic of South Africa.