atans1

Mandela’s economic and sporting legacies

In Uncategorized on 15/12/2013 at 8:33 am

On the economy, his legacy is mixed. In sport, he used rugby to unite a nation, especially getting the Boers to accept black rule by getting the blacks to accept the ‘Boks.

No Keynesian he

Nelson Mandela, who has died aged 95, was a rare and brave leader. But economically he was, ironically enough, too timid. He set post-apartheid South Africa on course toward a mostly free market economy with stable finances, avoiding the errors of others like neighboring Zimbabwe. But he left the country slow-growing and still suffering from inequality.

Mandela was an orthodox follower, reining in government spending so that public debt gradually declined as a percentage of GDP while pursuing a government-directed industrial strategy that encouraged the development of major black-controlled industrial groups. Foreign investment by multinationals was tolerated, provided the government and favored domestic groups were involved.

http://blogs.reuters.com/breakingviews/2013/12/05/mandelanomics-was-too-conventional-to-shine/

n some senses, Mr Mandela and the African National Congress (ANC) inherited an economy that was heading for bankruptcy.

So, it was to prove a difficult task to create a silk purse of an economy from the pig’s ear that Apartheid had left behind. However, many analysts point out that great strides were made in delivering some of the Freedom Charter aspirations in the early years of the new South Africa.

Dawie Roodt, chief economist at the Efficient Group, says: “Many millions of people got running water, electricity, etc.

“But the infrastructure was neglected, and slowly state inefficiency and corruption became serious problems.”

A good start but efforts faltered esp after he left office

On the surface, at least, things looked good at the start. Inflation, which was running at 14% before 1994, fell to 5% within 10 years.

South Africa’s budget deficit, which was 8% in 1997, fell to 1.5% in 2004. Interest rates dropped from 16% to under 9% in the first decade of the ANC government.

Once sanctions were dropped, South African exports blossomed. Before Mr Mandela took the oath of office, just 10% of the country’s goods were earmarked for export. By the turn of the century nearly a quarter of them were.

It wasn’t just economic numbers on sheets of paper. In the 14 years after 1996, the proportion of South Africans living on $2 (£1.22) a day fell from 12% to 5%.

Annabel Bishop, group economist at Investec, says South Africa’s economy has “essentially doubled in real terms” since the fall of apartheid, growing at an average of 3.2% a year since 1994, as opposed to only 1.6% per annum for the 18 years prior to the end of white minority rule.

She also points out that the real tax revenues have effectively doubled since 1994, which has enabled the government to expand social welfare.

“The state provision of basic services has been extensive,” she says.

But the early years still had to contend with huge problems. Apartheid had created rampant unemployment among the black population, an albatross that continues to hang around the economy’s neck almost two decades later.

South Africa’s official unemployment rate has hovered around 25% for years, and youth unemployment is much higher. By some measures half of those under 25 are out of work.http://www.bbc.co.uk/news/business-23041513

Nelson Mandela with Francois Pienaar

Nelson Mandela may have been the first global leader to use sport as a tool to unite people and to redefine a country’s international image.

And even before he was released from prison, Mandela had identified sport as a way of achieving a multi-racial country.

It’s hard to believe now but at the time the green and gold shirt was still deeply associated with the racial struggle in South Africa.

Mandela defied his advisers to wear it, knowing in an instant how the gesture could do more for harmony and equality than years of talks.

Pienaar, like most young white men in the country, had grown up believing Mandela was a terrorist. And the Springboks captain had to convince his team to learn the words to the country’s new national anthem, previously a song of black protest.

And yet after meeting him in the dressing room before the final and that presentation on the pitch at Ellis Park, Pienaar described him as the “symbol of everything that is good about humanity.”

http://www.bbc.com/sport/0/25262862

“Sport has the power to change the world…it has the power to inspire. It has the power to unite people in a way that little else does. It speaks to youth in a language they understand. Sport can create hope where once there was only despair. It is more powerful than government in breaking down racial barriers,” Mandela.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: