Quotulatiousness

March 21, 2024

QotD: South Africa under Thabo Mbeki

[During Nelson Mandela’s presidency, Thabo] Mbeki quickly began to insist that South Africa’s military, corporations, and government agencies bring their racial proportions into exact alignment with the demographic breakdown of the country as a whole. But as Johnson points out, this kind of affirmative action has very different effects in a country like South Africa where 75% of the population is eligible than it does in a country like the United States where only 13% of the population gets a boost. Crudely, an organization can cope with a small percentage of its staff being underqualified, or even dead weight. Sinecures are found for these people, roles where they look important but can’t do too much harm. The overall drag on efficiency is manageable, especially if every other company is working under the same constraints.

Things look very different when political considerations force the majority of an organization to be underqualified (and there are simply not very many qualified or educated black South Africans today, and there were even fewer when these rules went into effect). A shock on that scale can lead to a total breakdown in function, and indeed this is precisely what happened to one government agency after another. Johnson notes that this issue, and particularly its effects on service provision to the rural poor, pit two constituencies against each other which many have tried to conflate, but are actually quite distinct. The immiserated black lower class (which the ANC purported to represent) didn’t benefit at all from affirmative action because they weren’t eligible for government jobs anyway, and they vastly preferred to have the whites running the water system if it meant their kids didn’t get cholera. The people actually benefited by Mbeki’s affirmative action policies were the wealthy and upwardly-mobile black urban bourgeoisie, a tiny minority of the country, but one that formed the core of Mbeki’s support.

That same small group of educated and well-connected black professionals was also the major beneficiary of Mbeki’s other signature economic policy: Black Economic Empowerment (BEE). Oversimplifying a bit, BEE was a program in which South African corporations were bullied or threatened into selling some or all of their shares at favorable prices to politically-connected black elites, who generally returned the favor by looting the company’s assets or otherwise running it into the ground (note that this is not the description you will find on Wikipedia). The whole thing was so astoundingly, revoltingly corrupt that even the ANC has had to back off and admit in the face of criticism from the left that something went wrong here.

What made BEE so “successful” is that it was actually far more consensual than you might have guessed from that description. In many cases, the white former owners of these corporations were looking around at the direction of the country and trying to find any possible excuse to unload their assets and get their money out. The trouble was that it was difficult to do that without seeming racist, because obviously racism was the only reason anybody could have doubts about the wisdom of the ANC. The genius of BEE is that it allowed these white elites to perform massive capital flight while simultaneously framing it as a grand anti-racist gesture and a mark of their confidence in the future of the country.

This is one particular instance of a more general phenomenon, which is that at this stage pretty much everybody was pretending that things were going great in South Africa, when things were clearly not, in fact, going great. But this was the late 90s and early 00s, the establishment media had a much tighter hold on information than it does today, and so long as nobody had an interest in the story getting out, it wasn’t going to get out. Everybody who mattered in South Africa wanted the story to be that the end of apartheid had resulted in a peaceful and harmonious society, and everybody outside South Africa who’d spent decades supporting and fundraising for the ANC wanted this to be the story too.

John Psmith, “REVIEW: South Africa’s Brave New World, by R.W. Johnson”, Mr. and Mrs. Psmith’s Bookshelf, 2023-03-20.

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