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corruption

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The Johannesburg Mail & Guardian reports that two weeks of vandalism and violence in the townships show few signs of abating and that President Jacob Zuma appears unable to do much to stop it.   Zuma was selected as ANC Party Chairman in late 2007 and won April’s Presidential Election on promises to do more to help the poor in one of the most unequal countries on Earth.  Black South Africans still reflexively support the ruling ANC, the  party that liberated them, but less enthusiastically than before, after 15 years of crime, and growing inequality. In the current protests people have held up signs saying that life was better under white rule.

In the Mail & Guardian’s words, “In the past week, scenes reminiscent of the apartheid era have returned to the townships — clouds of acrid black smoke rising from burning tyres, police turning on residents with rubber bullets, sirens wailing and — most symbolic — official buildings and vehicles being set on fire.” [click to continue…]

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It is rare, though in recent months it has become much more common, for a bit of economic data to make you weep, but here is one that may. In 1993, when I was in Madagascar to review progress on the privatization of state enterprises, I came across a report stating that if the current set of reforms (privatization, trade liberalization, public sector reform) worked as hoped the country by 2010 would get back to the same level of per capita GDP it had in 1970. In the event, that optimistic scenario failed to materialize. According to the World Bank, Madagascar’s per capita GDP in 1970 was $473. In 2007 it was $320. That’s 40 lost years, a period in which two generations have been born and grown to adulthood in a shrinking economy that offers them almost no hope. [click to continue…]

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