Negative news are streaming out of South Africa. Among them include record level of unemployment, high inflation, stalling of reform process, flight of capital and what have you. Does it take the steam out of Africa’s arguably the most stable and economically happening country? Is there any silver lining in sight for the beleaguered economy?
Happily for the country, which is under tremendous economic stress, there are positive vibes resonating. It is not sheer make believe arguments and manufactured facts. Is there any country in the entire continent, where freedom of expression is as liberal as in South Africa? One has to surf through the negative trolls against the government in the social media and under the belt attack in the print and electronic media. Is there any country that tolerant as South Africa, which can take things in the right stride and allow such criticisms to fall flat on the government?
If that speaks volumes about the press freedom of the country and a healthy democracy, the country stands apart from in upholding the power of ballot paper and rule of law. The transition of a democratically elected government to another was blood less and not only that the culprits that had alleged to have perpetrated a corrupt dispensation are now accountable to the rule of the land and are tried in accordance with the rule of law, giving the people under cloud a chance to defend themselves. That type of protection under law is seldom happening in any other part of Africa, where there are ample cases of elected rulers becoming autocratic and continue in power suppressing dissent or manipulating election process.
Primacy of rule of law, independent judiciary and accountability of executive and legislative to judiciary for judicial reviews may be unknown in other African countries, but South Africa smarts itself in having a strict separation of power and that way a role model for the rest of the African countries. Coupled with a strong multi-party and stress on internal democracy within the political parties, the country has developed its checks and balances for a good governance and above all a democratic superstructure to ensure that rulers follow established norms and precedents and not law unto themselves.
South African economic super structure may be down but not out. There are built-in economic structures to guide and mould the economy. For instance, the monetary policies are calibrated by experts and economists and not by the people subordinated to the ruling class. The independence of the central bank and its control over the banks and financial institutions are comparable to any in the developed or emerging economies. The monetized part of the economy is much more than the other African countries, where prices and interest rates are determined by not so scientific process or informed consultations.
Some may attribute these progressive developments to the legacy left by the British. Even if that is conceded, the question remains how that is carried forward for 25 years in the same vigor, since the country could shed its apartheid undertones.
Should that mean, the economic slowdown is an ephemeral trajectory? All indicators are suggestive of that hypothesis. Once the demand picks up, industrial activities become buoyant, the sinister impact of unemployment, inflation and stagnancy will be a thing of the past.
