Research on Institutions for Pro-poor Growth

5 Aug 2009 - 17:45

Nicoli Nattrass and Jeremy Seekings are part of an international research collaboration on state-business relations for the project on Institutions for Pro-Poor Growth (IPPG). The IPPG project explores the proposition that political and social institutions have a direct bearing on economic institutions and thereby on economic growth and distribution. Nattrass and Seekings are conducting a South African case study of how state-business relations are shaped by the historical growth path and by labour-market institutions inherited from the past, but which nevertheless are strongly influenced by policy changes (notably black economic empowerment). They argue that South Africa's growth path will only become 'pro-poor' when institutional changes are made to facilitate a more labour-demanding growth path. This, however, would require compromises from organised labour. These ideas have been aired in business forums as part of the ongoing research process. See for example Nicoli Nattrass's paper for the Centre for Development and Enterprise on the challenges of job creation.