2012 UPDATE: National Development Plan: A more inclusive economy for young people?
Global growth remained subdued in the face of continued uncertainty around the resolution of the Eurozone crisis, and the prospect of the US economy tipping over the proverbial ‘fiscal cliff’. Declining demand in developed economies has also put a damper on forecasts for emerging markets, with growth in dynamos such as China, India and Brazil slowing down much faster than expected. Given the necessity for growth rates in excess of 6.0 per cent to achieve its developmental objectives, the National Planning Commission could not have launched its National Development Plan 2030 at a more challenging juncture. In October, growth prospects for 2012 were revised downward from 3.1 per cent to 2.5 per cent, with the budget deficit for the period widening to 4.8 per cent. Given these tough conditions, which are likely to persist, and the prospect that the internal social instability of 2012 may spill over into 2013, the country will have to draw on all the resources at its disposal to ensure that the inclusive growth agenda remains on course.