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Zimbabwe’s crisis goes far beyond years of economic decline. At its core is collapsing institutional credibility and the steady erosion of public trust. Shifting regional and global pressures are also pushing an already fragile system towards a tipping point.
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For much of the past three decades countries such as South Africa lived comfortably in what might be called a useful fiction: that global integration would reward good behaviour, multilateral rules would constrain bad actors and raw power and economic openness would reliably translate into shared prosperity. That fiction is over. What has replaced it is not a transition but a rupture, as recently argued by Canadian Prime Minister Mark Carney at Davos.
CAN business and the government work together to pull SA through a very difficult period? Many people believe we are in the midst of an economic crisis. If it is not yet a crisis, probably most would say that we’re heading for one. The economic situation, and its social consequences for poverty, unemployment and inequality, are clearly unsustainable — economically and politically.
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