African GDP (per capita

African GDP per capita

My latest column is a very brief political history of post-apartheid South Africa. I argue that though Nelson Mandela was an admirable figure in many respects, his successors in the African National Congress have not had a very successful economic track record. I was particularly struck by the contrast between South Africa and neighboring Botswana. As recently as 1994, Botswana and South Africa had virtually identical levels of GDP per capita (PPP). But between 1994 and 2012, South Africa’s GDP per capita (PPP) has increased from $7, 422 to $9, 860 while Botswana’s has increased from $7, 262 to $14, 639 (in constant 2005 dollars). Malaysia, a country that is in many respects quite similar to South Africa — both are middle-income, multiracial societies with affluent minority communities and relatively poor indigenous majority communities, as Dani Rodrik observed in a 2006 paper on “Understanding South Africa’s economic puzzles” — had a GDP per capita (PPP) of $8, 868 in 1994, which has since climbed to $14, 775. This is not to say that South Africa is alone among middle-income growth laggards. Brazil, for example, has had a similarly modest growth performance in recent years, despite generous heapings of hype — its GDP per capita (PPP) has gone from $7, 502 to $10, 264 over the same interval. Yet the ANC has made expansive commitments to its poorest citizens, which have often been cast in terms of racial justice. South Africa’s weak economic performance has thus engendered a great deal of bitterness, and a political and social climate that has led large numbers of educated young South Africans of all ethnicities to emigrate. The tragedy is that the South African economy had many advantages relative to other countries in its economic weight class, including a relative large English-speaking minority well-suited to thriving in a knowledge-intensive economy and relatively good infrastructure. Despite the ANC’s economic policy failures, it has not faced a serious political challenge, at least not yet.

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Source: www.nationalreview.com
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