by Nicholas Woode-Smith
Central planning didn’t only fail in these communist giants. It has also failed to achieve good results in mixed economies. Brazil embraced developmental policies that restricted imports and protected industries against foreign competition to grow a vibrant local economy. Instead, the industries built by this government intervention became bloated and unable to ever properly compete in foreign markets. It was ultimately unsustainable.
Some have argued that SA should take inspiration from the apartheid developmental state. Rather, we should learn from its failure. The central planning of apartheid saw the majority of the population used as cheap, borderline slave labour, created an unsustainable and socially cruel migratory work culture, and was fundamentally built on the exclusion of many for the benefit of a few. It is neither a moral nor a practical example to follow.
Apartheid didn’t create a robust economy that served the majority, it created a weak economy that could serve only a minority. Copying it and taking inspiration from it is the opposite of what SA needs.
Read the full article on Business Day.