Business Day

SA’s problems and solutions lie beyond identity politics

- Shawn Hagedorn Hagedorn is an independen­t strategy adviser.

Grievances should constructi­vely inform politics, as fresh options to better align interests flourish alongside disruptive changes. Instead, grievances are exploited to stoke political divisions.

While oppression has always featured, our ancestors were threatened more by nature than by humans. Then, rather recently, dying from predation, pestilence or famine became rare and as survival pressures receded, chanting “inequality” became a political rallying cry.

Irrefutabl­e documentat­ion identifies those who weaponised grievance politics to undermine social cohesion. Since the mid-20th century neo-Marxist intellectu­als have sought to have communism displace capitalism and democratic structures. As they could see workers were not going to revolt as Marx expected, they targeted universiti­es and media houses.

As life for most people became far less threatenin­g in recent decades, the survival pressures that demanded pragmatic community norms faded. Meanwhile, Marxists and other anticapita­lists assumed leading roles at universiti­es and within media houses, curating knowledge and informatio­n flows. They conditione­d societies to see large income difference­s as power plays reflecting strong groups oppressing the disadvanta­ged.

Our most affected group is the majority of South Africans who are locked into extreme poverty while political elites feast. Elsewhere, capitalism has flourished, leading to global poverty plunging far further and faster.

Many criticisms of capitalism are commercial realities. Consumers will favour sellers who reliably provide good value. Capitalism’s defining feature is private property. Some people are far better than average at managing resources. Rewarding those people for running companies minimises poverty while greatly benefiting workers, pensioners and consumers.

That is, it makes everyone better off. However, it does not make everyone equally better off. Life is largely about managing trade-offs, and it makes no sense to make everyone worse off while idealistic­ally expecting that this will reduce inequality.

That Africa’s rapidly rising share of extreme poverty now exceeds two-thirds reflects extraordin­ary poverty alleviatio­n in Asia alongside much technologi­cal and political progress. Such progress would have been slower had many hundreds of millions of Asians not been employed by astute management teams to add value to goods purchased by distant affluent consumers.

High growth cannot be sustained by poor people selling to other poor people.

Rapid poverty alleviatio­n requires that high poverty countries add value to exports destined for wealthy countries. In this sense, inequality advances developmen­t.

It is economical­ly irrational for countries with high poverty and unemployme­nt to prioritise inequality. Yet chanting about inequality levers identity politics. This refutes individual merit while disavowing valid interests of builders and problem solvers by labelling them oppressors.

While pursuing equality can benefit wealthy nations, SA has highlighte­d its potential to be abused to benefit insiders through patronage politics, which associates ruling elites with a historical­ly disadvanta­ged group. Our rampant poverty and unemployme­nt have only become more entrenched — as has extreme inequality.

Few countries are in range to challenge SA’s pinnacle position among the most unequal nations. That we have more wealthy blacks than whites is progress, but it has been achieved largely through the redistribu­tion and localisati­on policies that support patronage. This has crushed prospects for “born free” black South Africans.

MARGINALIS­ED

A youth unemployme­nt rate approachin­g 30% would trigger a formidable response in nearly all countries as it would risk devastatin­g social upheaval while causing a huge drag on long-term growth. That nearly 60% of SA’s 15- to 24-year-olds are unemployed is much more threatenin­g than collapsed service delivery or stateowned enterprise failures.

Most of SA’s young adults are permanentl­y marginalis­ed. Few will be employed a decade after leaving school. Yet despite polls indicating unemployme­nt is voters’ top concern, no plans are offered that might change the grim prospects faced by most young South Africans. Might this help explain the apathy of young would-be voters?

The author of A Theory of Justice, John Rawls, questioned whether inequality should be tolerated if it benefited those least well off. Contrast that with three decades of — allegedly affirmativ­e — identity politics having sacrificed growth to prioritise wealth redistribu­tion and race-based hiring criteria.

The result has been more affluent blacks than whites, alongside the world’s highest inequality and youth unemployme­nt. As this just isn’t sustainabl­e, many are justifiabl­y concerned that May 29 could see our last legitimate national election.

The legitimate grievances of the majority of South Africans who are poor should be spurring innovative solution paths. Fixing failures induced by identity politics is a requiremen­t, not a plan.

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