Dave > Would you care to comment on this article? The Saga of South Africa's Economy.
Putting it as complimentary as I am able -- the history is more or less right, I cannot comment about whether the economy was based on Keynsian theory because I'm not an economist, but the concluding paragraphs are complete BS. So much so, that I cannot understand what the point of the article is -- other than for Mr Valentine to let off some flatus.
The debt incurred by the previous regime, largely for the war in Angola, has been paid off and there are very few loans from the IMF. Growth in GDP has increased year by year and is now about 4% pa, which, of course, could be better. Nevertheless, the sharemarket is at an all time high, real estate, certainly in the best parts of SA, is selling at prices comparable to those in the US and the rand is coming of a peak at which point it was one of the strongest currencies in the world. Most importantly, I don't know one person who is pessimistic about the country -- and I'm certainly no ANC supporter. All this has to be indicative of something.
Yes, there are still serious problems -- AIDS, unemployment, poverty and crime being the principal ones. In my opinion, the two main problems confronting the economy are (a) affirmative action and/or the need for it and (b) the very strong rand which has made exports uncompetitive and has impacted very hard on the mining industry.
But overall I would say the country has made a nigh-miraculous transition from a minority-run, white, fascist regime to a majority-controlled, non-liberal democracy, but a democracy all the same, and certainly one in which human rights are held in high esteem. Furthermore, and despite their socialist/communist heritage, the ANC are today some of the most avaricious capitalists one could find anywhere. |
