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Private sector must address challenges of the 21st century

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THE Corporate Governance Index 2014, which GovInn released last week in partnership with the Institute of Internal Auditors of SA, provides a worrying snapshot of the state of business performance in SA.

The index finds that the leadership skills, accountability and overall conduct of public and private corporations have worsened over the past year. GovInn director Lorenzo Fioramonti comments on the perilous relationship between economic and political powers on Business Day, South Africa’s leading business newspaper.

If public officials take bribes to favour a few at the expense of the public good, then it is worth asking: where does the money come from? And the answer usually is: from business.

The simplistic juxtaposition between corrupt government and virtuous business does not pass the reality check.

Read the full article here

“Time to liberate ourselves from a misleading statistic” by Lorenzo Fioramonti
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South Africa is on an economic roller coaster. After the five-month strike in the platinum mines and turmoil in the metal sector, our country is still grappling with a credit downgrade and gloomy forecasts for economic growth.

 

Pundits warn that if the gross domestic product (GDP) does not pick up in the coming months, a recession will be inevitable, with disastrous consequences for all of us. Our eyes are all on this magic number. But what is GDP? Is GDP really helping us measure the state of our economy? Or is it a misleading indicator that contributes to wrong policy decisions, especially at a time of growing unrest and dissatisfaction with the transformation of the economy?

Read the full article on South African economy and the inadequacies of GDP, on Business Day, South Africa’s leading business newspaper.