South Africa’s Two-Tier economy

In Memory Bank:
What we have here is a world-class business environment surrounded by some of the lowest human development conditions in the world. It would have been easy to explain such dualism not long ago, when South Africa was notorious as a mining enclave run for the benefit of whites only; and perhaps two decades of ANC rule (with the black union federation COSATU as its principal supporter) are too short to undo the legacy of neglect and harrassment endured by the poor black majority for over a century. But South Africa’s first world corporate capitalism and the third world conditions most citizens live in are both to a significant extent a product of post-apartheid government. Moreover, public discourse in South Africa could hardly be said to reflect these stark contrasts. The arrival of “democracy” in the form of black majority rule in 1994 is still celebrated without any apparent irony.

The social glue for this paradoxical situation is the ANC’s ability to count on the votes of the poor black majority whose interests it systematically neglects. No wonder the South African left is hamstrung by its ideological legacy on race and class. South Africa’s growth rate of an average 3% a year is less than half that of the seven African countries who (with China, India and Vietnam) currently make up the top ten fastest-growing economies in the world. Surely this relative stagnation is an effect of the country’s business-friendly (some would call it “neoliberal”) economic model. The prospect for major social explosions still seems to be low, not least because South Africans have been told they are superior to the rest of the continent and are easily diverted by resentment of other Africans who come there for jobs.
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