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Under South Africa’s managed decline, public investment, industrial policy or breaking up monopolies have been ruled out. Instead, the government embarks on minimalist crisis management, designed not to solve economic and social decay but to spread it out over decades.
The discrepancy in crime rates between SA and others is because the real problem in South Africa is inequality—you know, the vast gap between rich and poor. South Africa has one of the biggest wealth gaps in the world.
Mass industrialisation means building an economy where large numbers of people are employed to transform raw materials into finished products across many industries. Steel plants, car assembly lines, textile mills, agro-processing hubs, chemical plants, electronics, etc.
People often say that for the economy and the country to work, people must be hired on merit. However, the truth is that although widely held, the belief that merit rather than luck determines success or failure in the world is demonstrably false.
First, the biggest problem with Duduzile is that she believes she has real support. She assumes that everyone backing MK is doing so partly because of her and that these supporters will rally behind her campaign against Floyd Shivambu just like they did against Jabulani Khumalo.
Zambia’s economy was turned upside down in 2000 when a company called Carlisa Investments bought a controlling stake in the State-owned copper producer Mopani Copper Mines. Carlisa was a shell company registered in the tax haven of the British Virgin Islands and owned by Glencore.
In 1992, at 28 years old, Brett Kebble and his father bought a small decrepit mine called Rand Leases in west Johannesburg for 1 cent a share. Within a year, the mine was worth 1 rand a share. Kebble had paid R40 000 for the mine. Within a year, it was worth R4 million.
When US banks caused a financial crisis and then collapsed because of it, their government decided to bail some of them out, because they were “too big to fail”. To analyse the damage and disburse the money, the government chose a little-known company called BlacRock.