Economic Development (Transformation) is based on the concept of Strategic Malinvestment. Some of you may know it as “Overlending”. This is more than just about funding key industries but about the insurance for creative destruction during technology replacement and innovation.

All successful latecomers that have attained economic transformation have used a system of indirect bank financing or excess debt in order to finance their development. From Germany, Japan, South Korea, Taiwan to China.

There is a difference between Economic Development (Transformation) and macroeconomic growth. Schumpeterian transformation is more concerned with processes at the micro-meso level instead of just relations of just broad aggregates. Unfortunately most economists in SA

Unfortunately most SAs economists won’t be much help as most were taught Neoclassical economics which has a flawed understanding of monetary economies and Economic Development. Therefore if we want to build an inclusive and sustainable high-tech economy they won’t be much help.

We have to move away from stupid false doctrines of independent central bank, lack of savings n money. This is the easy question with easy solutions. There are hard issues that come with structural transformation and that need to be addressed.