Why economic centralism is bad for economic development

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
0:00
play article
Subscribers can listen to this article
Since its inception in 2011, the EDD has accounted for only P40.4 billion (R55.8 billion) or 53% of government procurement, a far cry from the government procurement needed to create vibrant local production and manufacturing industries. Picture: iStock
Since its inception in 2011, the EDD has accounted for only P40.4 billion (R55.8 billion) or 53% of government procurement, a far cry from the government procurement needed to create vibrant local production and manufacturing industries. Picture: iStock

VOICES

The government’s purchasing power is, of course, huge because of a relatively small and largely undiversified economy. The latest figures show that the government continues to be the single biggest buyer in the domestic economy, followed by the mining industry.

As commendable as trying to support the operations of local producers and manufacturers and reducing the import bill in the process may be, the answer whether the EDD will prove to be the best way to support the growth of local producers and manufacturers and ensure they play a role in economic diversification is debatable.

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism. You can cancel any time.
Subscribe
Already a subscriber? Sign in

E-Editions

Read the digital editions of City Press here.
Read now
Voting Booth
With less than two weeks to go to election day, political parties are ramping up their campaigning, bringing out influencers and celebs at their rallies. Do you think bringing out DJs, celebs and musicians will work to win votes?
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not influenced
91% - 144 votes
A gig is gig
6% - 9 votes
Need more of it
4% - 6 votes
Vote