Show how the world economy has pivoted from being resources constrained to demand limited.

Also show implications for global inflation and implications for resource endowed nations.

• SA’s pol-econ dynamics are particularly impacted as far less scope to rely on wealth distribution

The big shifts – global hypercompetitiveness, shift to services, shift to information age, digitalisation, climate change, lower birth rates … –  are all anti-inflation and anti the interests of those providing raw materials.

Globalisation is focused on increasing efficiencies through ever greater competition.

Morphing from manufacturing-led growth to services-led growth means there is far less potential for tightness in raw materials to spur inflation.

Information led innovations and efficiency gains feed on overcoming material shortages.

Digital economics is largely unconstrained by material shortages.

The big shifts are all anti-inflation and anti the interests of those providing raw materials.

Globalisation is focused on increasing efficiencies through ever greater competition.

Morphing from manufacturing-led growth to services-led growth means there is far less potential for tightness in raw materials to spur inflation. Information led innovations and efficiency gains feed on overcoming material shortages.

Digital economics is largely unconstrained by material shortages.

SA’s inflation reflects:

• rejection of competing globally and becoming fully integrated into the global economy
• excessive indebtedness of workers leading to aggressive wage negotiations
• an inefficiently structured economy