Economic Digest 31 September 2022: Social Compacting for Economic Development and Growth
This idea of a social compact between government, business and civil society as a basis for long-term economic development and growth is nothing new. These kinds of ‘working relationships’ underpin the economic models in many industrialised countries. President Cyril Ramaphosa promised in his state-of- the-nation address in February that a social compact would be achieved within 100 days to forge a path forward for economic growth. That deadline was missed as agreements between the main actors could not be reached, but in July the President said that a “framework for a social compact has been devel- oped”, which was then circulated to all the role-players.