Lessons from South Africa

What South Africa teaches about resources, discrimination, state enterprises and unemployment, and a recap of the module.

South Africa offers important lessons.

Lessons

Discrimination wastes talent and harms growth.
Political change must be matched by economic inclusion.
State enterprises need investment and good governance.
Geography from past policies can trap people far from jobs.
Social grants reduce poverty but can’t replace jobs.
Institutions can resist capture when courts and media are strong.

Module recap

Diamonds and gold built South Africa’s economy.
Apartheid restricted Black South Africans’ jobs, land and education.
The 1994 transition brought stability and services.
Unemployment exceeds 30 percent.
BEE increased Black ownership but favoured an elite early on.
Eskom’s failures caused load-shedding.
About 28 million people receive grants.
Platinum group metals now matter more than gold.
State capture weakened institutions.
Townships host small informal businesses.
South Africa and India share deep ties.

The township solar business

A young entrepreneur in a township installs rooftop solar panels for neighbours during load-shedding, creating jobs and showing how enterprise can respond to problems.

Thinking political freedom automatically brings prosperity

Economic inclusion and strong institutions are also needed.

Key takeaways

Discrimination and geography have lasting costs.
State enterprises need good governance.
Grants help but jobs are essential.
Strong institutions resist capture.