recently, in india, a development platform with the promise to reverse several years of sub - par growth and high inflation is being pursued. the lesson to take from this is that we are not helpless in the face of economic disappointment, of high inflation and low growth. for monetary policymakers, with limited tools, this situation provides no attractive choices. but there are many appealing options available for other aspects of policy. for south africa, our present predicament should be read as an invitation to embrace reform. the national development plan provides a compelling basis upon which to build our reform agenda. let us begin to do the work. the contribution of the south african reserve bank to the national development plan is captured in the constitution of the republic of sa and i would like to end by quoting “ section 224. the primary object of the south african reserve bank is to protect the value of the currency in the interest of balanced and sustainable economic growth in the republic. ” thank you. bis central bankers ’ speeches

probably continue to decline as china slows and rebalances. credit extension has also been growing quite feebly in south africa, and although household balance sheets have improved, they are not robust enough to sustain another round of credit - driven growth. • furthermore, the policy stimuli which have bolstered growth since the crisis now need to be slowly withdrawn. responsible fiscal and monetary policies in the pre - crisis period left south africa with considerable policy space to run fiscal deficits and enjoy record - low interest rates. but now debt levels are once again approaching uncomfortable levels, and as i have already said, the inflation outlook requires an interest rate hiking cycle. 4. the need for reform the above notwithstanding, south africa does have attractive prospects for policy reform. the national development plan ( ndp ) outlines ten critical actions which we should focus on to take the country to the next level, that of a higher, labour absorbing growth path. these critical actions include : 1. a social compact to reduce poverty and inequality, and raise employment and investment, founded on partnerships with all sectors of society. bis central bankers ’ speeches 2. a multipronged strategy to address poverty and its impacts through broadening access to employment, strengthening the social wage, providing public transport and raising rural incomes. 3. steps by the state to professionalise the public service, strengthen accountability, improve coordination and prosecute corruption. 4. boost private investment in labour - intensive areas, competitiveness and exports, with adjustments to lower the risk of hiring younger workers. 5. an education account - ability chain, with lines of responsibility from state to classroom. 6. phase in national health insurance, with a focus on upgrading public health facilities, producing more health professionals and reducing the relative cost of private health care. 7. public infrastructure investment at 10 percent of gross domestic product, financed through tariffs, public - private partnerships, taxes and loans and focused on transport, energy, water and freight. 8. interventions to ensure environmental sustainability and resilience to future shocks. 9. new spatial norms and standards – densifying cities, improving transport, locating jobs where people live, upgrading informal settlements and fixing housing market gaps. 10. reduce crime by strengthening criminal justice and improving community environments. 5. conclusion looking around the world, this is something of a springtime for reform. in mexico, for example, the government has adopted a bold structural reform package, known as the pact for mexico, which includes major changes in telecommunications and education policy. more