Today, the government at all levels is punting radical economic transformation.

Radical economic transformation would be characterised by rapid industrialisation, inclusion of the majority of the population in economic activity, heightened levels of entrepreneurship and a more sophisticated skills base.

In comparing the economic success of South Korea versus the failure of North Korea, this is the contrast identified by Daron Acemoglu and James A Robinson in their book Why Nations Fail: the Origins of Power, Prosperity, and Poverty:

"Imagine teenagers in North and South Korea and what they expect from life. Those in the North grow up in poverty, without entrepreneurial initiative, creativity, or adequate education to prepare them for skilled work... Those in the South obtain a good education and face incentives that encourage them to exert effort and excel in their chosen vocation."

Having read this, I ask: are South Africa's youth more comparable to those in South Korea or North Korea?

Although living in a democratic society with a very sophisticated economy South Africa's youth, especially blacks that come from poor backgrounds, have limited prospects, almost as if they were living under a dictatorship such as North Korea's.

Research has revealed that when South African pupils leave school, they are ill equipped to take on the challenge of taking up skilled employment. More worrying is that they are devoid of the creativity to become innovators and entrepreneurs.

Successful economies are built on the foundation of good education, vocational excellence and high rates of skills development.

Successful economies provide incentives for investment, for innovation and entrepreneurial prowess.

The ANC government's policies on promoting inclusiveness in the economy cannot be faulted for lack of good intentions. But as the saying goes, the road to hell is paved with good intentions.

The reason Black Economic Empowerment has not worked, for instance, is in the failure of the government to guarantee a good quality of education and production of vocational skills among the black population to increase the pool from which black industrialists and innovators can emerge.

Just like in North Korea, because of poor education, a paucity of skills the scope of economic activity of the majority of the population is limited. Hence we have close to 30% real unemployment.

But there is more to radical economic transformation than education. There can be no thriving small business sector and entrepreneurs without a conducive policy environment.

The low rate of innovation, invention and investment in research and development is an indication of a policy framework, financing and regulatory environment that does not understand the value of these in driving economic activity in 21st century.

Acemoglu and Robinson continue, "Inclusive economic institutions, such as those in South Korea or in the United States, are those that allow and encourage participation by the great mass of people in economic activities that make the best use of their talents and skills."

That unfortunately is the reality of only a few in the South African context.

It is little wonder that our great innovators like Mark Shuttleworth and Elon Musk decided to take their entrepreneurial skills to UK and the US. Of course these didn't have to grapple with the hamstringing challenge of poor quality education and poverty. But South African funders and policies were not open to take the risks necessary to allow them to realise their innovative potential.

It is those who have benefited from superior education, have entrepreneurial role models and personal connections that assist them to exploit their talents and implement their creative ideas. It is the sons and daughters of those who control the entities that drive the pulse of our economy.

"To be inclusive, economic institutions must feature secure private property, an unbiased system of law, and a provision of public services that provides a level playing field in which people can exchange and contract; it also must permit the entry of new businesses and allow people to choose their careers."

Without land, black people do not have the collateral to get business finance. Notwithstanding the need for accommodation, it is this imperative that should drive the government's determination to fast track the land reform process.

We have good laws and policies governing business. But, unfortunately, there is a bias towards big business in South Africa. This perpetuates the exclusion of the majority in economic participation.

Until today, key sectors including mining, manufacturing, agriculture, financial services, tourism, information technology and telecommunications are dominated by big monopolistic corporates. These act as gatekeepers, making it difficult for new entrants to make headway.

Moreover, the government's failure to provide services is often evaluated through the lens of protesting communities. But poor services is a killer of entrepreneurship.

Many a prospective entrepreneur has been disheartened by the state's inability to fast-track business applications, licensing and to provide vital social goods including electricity, information and communication technology and transport.

This has contributed to the exclusion of many from the economy.

It is not good policies and intentions that are lacking, it is the political will to use state power to empower the people to realise their full potential.

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