Don’t worry about the colour of the cat. Worry about whether it catches mice
THE ANC seeks economic salvation in all the wrong places.
It's not to be found in slavish imitation of Xi Jinping's authoritarian template for China's developmental state. It's not to be achieved by robotically following Karl Marx's century-old map towards a socialist nirvana. Nor, most implausibly of all, by chugging the ANC's home-brew Kool-Aid of both the above, the heady draught of the National Democratic Revolution.
The route to regaining our economic mojo is less glamorous, more prosaic. When pressed for an example of how to extract South Africa from its economic morass, Ricardo Hausmann, one the world's most influential political economists and head of Harvard's respected Growth Lab, suggested — Albania.
Not necessarily and specifically, Albania, you understand. But the likes of.
What Hausmann was, in essence, saying – he was being interviewed by Ann Bernstein, the head of the Centre for Development and Enterprise at Wits, following the release of the Lab's 30-month applied research project into the South Africa economy – was that South Africans should shed their mental shackles.
Developmental success for a middle-income country like ours would not result from ideological formulations but from boxing clever, making quick and effective interventions that are known to have worked elsewhere.
“South Africa had the engineering capacity, the financial capacity and the knowledge to fix the electricity problem, but ideology prevented the state from allowing that to happen. Certain ideologues … want to see not just electricity being supplied, but that the electricity is being supplied by a state monopoly,” he says.
Paraphrasing former Chinese leader Deng Xiaoping, he says we appear to care more about the colour of the cat than whether the cat catches mice.
Hausmann's expertise is that of scholar and practitioner. He's behind several concepts that are now common currency in developmental economics and has a wealth of hands-on experience, including a stint in the 1990s as Venezuela's minister of planning, and in helping many developing countries grow their economies. Like Albania, for instance.
The Harvard Growth Lab report notes that three decades after the end of apartheid, the economy is defined by stagnation and exclusion. The government's strategies are not achieving inclusion and empowerment of disadvantaged groups.
Says Hausmann: “The sense of optimism of the Noughties, that things were improving, has gone. By every international benchmark, South Africa has underperformed.”
The government has not only failed to accomplish its goals of inclusion and empowerment. Worse, what is being done to address the problems – preferential procurement policies and cadre deployment – are exacerbating the situation.
The key problem is state collapse. It's the “predominant driver” of our weakening economic performance and growing macroeconomic stress.
But the problem is a lack of political will and commitment. “We find that current reform momentum is unlikely to reverse this collapse because reforms are encountering systemic, deep-seated, and underlying issues of political gridlock, ideology, patronage, and an over-burdening of state organisations with goals beyond their core missions and capabilities,” says the report.
More informally, Hausmann says “the reason why gridlock is overcome in other societies, is that if you don't fix the stuff, you lose the next election”.
The ANC, however, feels that it has no reason “to bite the bullet”.
On the upside, the report says South Africa is in a strong position to create new sources of comparative advantage by leveraging the global changes that the energy transition is creating.
Hausmann also sketches a range of relatively simple interventions to improve South Africa's terrible labour participation rates.
It all comes down to, says Hausmann, focusing less on redistribution to compensate people for their exclusion. Instead, “we want to see investments that promote inclusion, because growth through inclusion is going to be a win for growth and a win for reducing inequality”.
What about the whole Albania thing and Harvard?
“We've been working on Albania for the last 10 years,” says Hausmann. “When we got there, it was in the throes of fiscal, banking, currency and electricity crises. Now, electricity has become a source of growth. Tourism is booming. It's just the happening place.
“All it took is that we fixed a bunch of little things. It's been just amazing.”
When there's energy in a society, it just needs to be harnessed, says Hausmann. “I'm very convinced that there's so much talent in South Africa that if we just fix enough things, people can transform the place.
“And, you know, worry about the cat catching mice”.
UNIVERSITIES can draw valuable insights from the Springboks regarding the power of diversity and inclusion.
In clinching their fourth world title, the Springboks defeated the formidable All Blacks in an epic final that harked back to their iconic 1995 victory – a moment celebrated as one of the most significant nation-building milestones worldwide.
Upon the Springboks' return,captain Siya Kolisi declared: “This one is for every single person in South Africa, rich or poor – it doesn't matter. This win will inspire a lot of people, but it won't change their circumstances. However, for us players, it's going to give us a platform to create more opportunities.”
Kolisi's words are a poignant reminder that even after the Cinderella-like 1995 victory, South Africa grappled with enduring challenges.
Bringing social justice to all South Africans can be realised by establishing pathways to well-being and prosperity, a role that universities play. Education and innovation serve as vital routes out of poverty and the shadows of historical injustices.
The academic foundations Rassie Erasmus and Jacques Nienaber received at the University of the Free State undoubtedly contributed to their excellence as coaches. Erasmus and Nienaber collaborated with a talented and diverse technical staff, including Mzwandile Stick, Deon Davids, Daan Human and Andy Edwards. The 2023 squad, with 41% identified as black players, was not only the most racially diverse Springbok team, but also an embodiment of South African rugby traditions and styles, blending the high-altitude 10-men rugby of Gauteng with the flair and abandon often seen at lower altitudes. The result was world-beating.
Moreover, the squad had 16 overseas players, nearly half the 33 allowed. The overseas Springboks brought new perspectives and skill sets, creating a beautiful collage of mixed and crossed backgrounds, cultures and heritages. Their success emphasises that all achievements stem from co-operation and interwoven engagements. This challenges the notion of pure nations, ethnicities, races, genders and sexes, highlighting that it is unfounded, unrealistic, and misanthropic.
In contrast, the New Zealand Rugby Union decided in 2000 to exile players who signed overseas contracts to enhance competitiveness by maintaining a shared playing culture within the All Blacks. The notion of exceptionalist island insularity contradicts the All Blacks' otherwise evident openness to diversity and inclusion. Immigrant influences from the Pacific Islands have been integral to their success, with 45% of the All Blacks' 2023 squad boasting Pacific heritage.
Reflecting on the 2019 World Cup triumph, rugby writer Alex McLeod noted that nine Springbok squad members were playing outside South Africa, emphasising their indispensable contributions to the victory. “Without the presence of those individuals, it's questionable as to whether Siya Kolisi would have ever lifted the Webb Ellis Cup in Yokohama,” he said.
Like the Springboks, the University of the Free State (UFS) has chosen to embrace diversity and inclusion to address interconnected needs.
The Springboks have exemplified the importance of embracing diversity with care. The touching moment captured in the documentary series Chasing the Sun”, where Erasmus sheds tears upon realising that winger Makazole Mapimpi lacks a family photograph to attach to his Springbok jersey, serves as a poignant example. Such acts of care unite people and empower them to overcome odds. This understanding drives the UFS's approach to enhancing its global reputation by reconciling all who belong to it within the pursuit of excellence and care.
Universities can glean from the Springboks that the path of inclusion and diversity compels us to reconsider who we are, who belongs and how belonging is constructed. A genuine embrace of inclusion and diversity challenges us to re-evaluate the boundaries we impose on ourselves and others, urging us to acknowledge our diverse origins in a decolonial manner that allows everyone to achieve their fullest potential.
The Springboks have shown that embracing diversity and inclusion is a powerful strategy for achieving excellence.