Archive for the 'Economy' Category

Flooding on the Coasts

Saturday, June 21st, 2008

South Africa’s coasts have been battered with storms on both the Indian Ocean and Atlantic sides. Severe flooding has beset the coastal regions of the Western Cape and KwaZulu-Natal. Naturally the most vulnerable populations, the poor, those living in informal settlements, have been hit the worst. Cleanup has begun in KwaZulu-Natal, though the process will inevitably be slow. death tolls have surpassed the double digit levels, but many more are missing and it is hard not to fear the worst.

The Alexandra Crisis

Wednesday, May 14th, 2008

Chaos in Alexandra continued to escalate through the weekend, though people are doing the best they can to live their lives as normal and many claim not to have noticed the violence that has largely been driven by xenophobia. Calm prevailed on Tuesday morning, but one wonders if the tenuous peace will hold.  Stranded and fearful, hundreds of foreign residents of Alexandra are squatting at the police station until either alternative accomodations emerge or some guarantee of calm prevails.

Obviously the root of the violence in the cramped Johannesburg township is the grim nature of much of urban life. The economically vulnerable need to find someone to lash out at, and foreigners make for a logical scapegoat. Xenophobia, though real, thus becomes an exciuse and a catchall justification for what poverty has brought.   

On The Road

Wednesday, March 26th, 2008

I am leaving the country for a few days and almost surely will not have a chance to write here. I will return Tuesday (or possibly Monday night).

In the meantime, you can ponder the following: is South Africa looking at imminent and enduring inflation?

Worries For South Africa’s Economy?

Monday, March 17th, 2008

I do not even feign to be an economist, but many observers, including Finance Minister Trevor Manuel, worry that the country’s current account deficit represents a “major chink in [South Africa’s] armour.” The declining value of the rand and the tenuous state of global markets is also a concern, but as Manuel points out, probably wisely, “If I were concerned every time the market moves I would probably have been committed to an asylum a long time ago.”

The Millennium Challenge Initiative

Monday, February 11th, 2008

Charles R. Stith, a former US ambassador to Tanzania and director of the African Presidential Archives and Research Center at Boston University, has an op-ed piece in today’s Boston Globe endorsing the Millennium Challenge Initiative as a way to help develop Africa. He argues that partisan squabbling over the amount of funding to provide the MCI is akin to an old proverb that asserts that when elephants fight it is the grass that suffers. It seems to me that it would be worth providing the full funding that President Bush wants if only to see if the program is viable.

State of the Nation

Friday, February 8th, 2008

There can be little doubt that the past year has been the most trying in Thabo Mbeki’s oft-tumultuous presidency. Tonight he gave his State of the Union address before parliament. He certainly had plenty of fodder from which to work: The electricity crisis, crime, poverty, the daunting prospect of hosting the 2010 World Cup, and simply a general sense of malaise.

Mbeki provided a positive spin, called for the nation to pull together to confront the issues facing South Africa, and praised his countrymen for their resilience in the face of recent difficulties, especially the power delivery nightmare.

The response to Mbeki’s optimism has been skepticism in many, but far from all, circles. Helen Zille,  leader of the Democratic Alliance, whose job it is to be critical, took her job seriously, criticizing the president for “business as usual.” The editors of The Mail & Guardian approached Mbeki’s address fatalistically as did other observers. One imagines that those critics were likely not placated by Mbeki’s address and that Mbeki’s supporters found much with which to be pleased. In other words, status quo ante is likely to prevail.

Trying to Fathom the Unfathomable

Friday, February 1st, 2008

According to Reserve Bank Governor Gideon Gono, Zimbabwe’s inflation hit a record 26 470,8% in November 2007. These sorts of numbers defy commentary. They defy understanding.

End of Weekend Quick Hits

Sunday, November 11th, 2007

A number of stories caught my attention this weekend. Here are a few of them, with brief commentary as appropriate:

The Makana Football Association, which operated surreptitiously on Robben Island among the political prisoners has achieved recognition from FIFA, the sport’s governing body. A feature film, More Than Just a Game, starring Tsotsi’s Presley Chweneyagae, is to be released in South Africa in the next few weeks.

Thabo Mbeki recently has been stepping up his advocacy of a trilateral free trade area between South Africa, India, and Brazil. Mbeki believes that this trade bloc will give these leading nations in the developing world a stronger hand in trades with the World Trade Organization and will focus on addressing poverty and underdevelopment in the three countries and within the regional spheres that they dominate.

The Mail & Guardian’s “ZA @ Play” has an interview with Mark Gevisser, the respected observer of South African politics whose forthcoming book Thabo Mbeki: The Dream Deferred is highly anticipated. The interview is fairly anodyne, truth be told, but the book should stand as a definitive early treatment of Thabo Mbeki’s life if it can avoid the pitfalls of polemicism and advocacy to which virtually all of the books on Mbeki up to now have succumbed. 

Finally, a bit of a controversy has enveloped one of my old stomping grounds, Rhodes University. Last year Anne Warmenhoven submitted a doctoral thesis to Rhodes’ psychology department, which approved the dissertation and granted Warmenhoven the PhD. Her topic is the late disgraced former Proteas captain Hansie Cronje. But the dissertation apparently is nowhere to be found, apparently because members of Cronje’s family only agreed to speak with Warmwnhoven under conditions of secrecy. Obviously this goes against every principle of academic freedom and openness, not to mention ideals of transparency that are supposed to be a hallmark of the New South Africa.

More Zim Updates

Wednesday, September 19th, 2007

The proposed Constitutional changes to streamline (or consolidate ZANU-PF power, depending on your perspective) the political process in Zimbabwe have come to pass. Under the provisions of the legislation Zimbabwe will change its electoral boundaries, increase the number of MPs and accelerate by two years parliamentary elections.

In a gesture that makes a virtue out of necessity, the opposition Movement for Democratic Change (MDC) decided not to contest the changes despite widespread opposition, because the party did not have enough votes to stop the vote from carrying in any case. MDC thus can claim that it is facilitating the negotiation process that Thabo Mbeki is overseeing for South Africa on behalf of SADC.  It is easy to detect resignation on the part of the opposition. But without any viable outlet to prevent the changes from taking place, the opposition hopes that the outcome of this Constitutional tinkering will be a more open political process. (The Foreign Policy Association has more links here.)

Acquiescence seems to be the coin of the realm north of the Limpopo these days. Despite the economic crisis (which now includes outbreaks of disease in Bulowayo), unions, for example, have been unable to gain any traction in their call for a general strike this week.

Meanwhile in South Africa retired Archbishop Desmond Tutu has called for more outside pressure on Zim from both the western powers and especially England, but also from South Africa. As long as there is progress, however tentative and cosmetic, an outside world that has been loath even to think about intervening in Zimbabwe is going to continue to stand pat. This is Thabo Mbeki’s roll of the dice. If these reforms prove effective, he will deserve a large proportion of the credit. But if they fail, and it is easy to succumb to pessimism and argue that they will, it all lands in Mbeki’s lap. Let’s hope for Zimbabwe, far more than for Mbeki, that his gamble proves to be a winning one.

Friday Southern Africa Quick Hits

Friday, September 7th, 2007

If’s a busy news cycle right now in Southern Africa. here are a number of stories that caught my eye in today’s chock-full Mail & Guardian and elsewhere:

As the thirteith anniversary of the murder of Steven Bantu Biko at the hands of the security forces approaches different South Africans remember Biko’s life and death differently.

the Zimbabwe crisis continues unabated. The economic calamity has opened the door for corruption. Some maintain hopes  that South African-brokered talked will lead to a resolution of the political elements of the country’s conflicts, but it seems that  this may not be the time for whistling past the graveyard.

Meanwhile, transformation isn’t always easy. Members of the Democratic Alliance (DA) are up in arms over the Tshwane metropolitan council’s reported ban on white businesses. If the allegations are accurate, the DA would certainly seem to have a case that they will bring before the Constitutional Court. Meanwhile in a  pronouncement that is likely to be equally tendentious, the Black Management Forum  (BMF)  has argued that white women should be removed from the list of groups previously disadvantaged ”in terms of . . . employment equity legislation.” It is a bit hard for white women who benefitted in every imaginable way from apartheid suddenly stepping forward to claim their lots alongside the black South Africans on whose backs the Apartheid system built white privilege.

Finally, the M&G’s longtime rugby columnist Andrew Capostagno has a nifty piece on how this Rugby World Cup represents a “big chance” for the Springboks. He concludes his historically astute article by arguing that if the Boks achieve their considerable promise and “Win this one” South Africans “can forget, for a long, glorious moment, about politics.”