Inaugurated as the first non-white president of South Africa on 10 May 1994, Nelson Mandela’s words embodied a profoundly hopeful, some now say utopian, vision of the country’s future. For Mandela and the African National Congress (ANC), which had won the first democratic elections in the previous month of that year, this vision was born out of political necessity rather than wishful idealism.
Orchestrated by the National Party upon their electoral victory in 1948, the system of apartheid, through authoritarian domination and extensive economic exploitation, not only forged social division but also breathed potent life into the myth of race. Legally enshrined racial identification and racist discrimination permeated daily life and seemed to determine one’s destiny in South Africa. For most branded as non-white, apartheid condemned them to poverty and ceaseless hard labour. Millions were displaced from the land of their ancestors to be squished into the suffocating squalor of townships or left to wither in the bleak terrains of Bantustans (native reservations).
Perceived as inherently different and inferior to white people, non-white South Africans were denied any meaningful representation or participation in government. The possibility of a colonized population that outnumbered its oppressors by eleven to one gaining political autonomy horrified white nationalists, and so those who summoned courage to resist white supremacy often endured tormenting surveillance, imprisonment, torture or state-sanctioned murder.
After 50 years of non-whites being subjected to political oppression and being degraded into instruments for the sustenance of white prosperity, the possibility of living in a peaceful multi-racial society seemed implausible to some and terrifying to others. There were white South Africans haunted by the delusional fear that a Black majority government would sanction brutal, bloody retribution against them. However, this was a subtle recognition of racism’s evil and an unconscious admission of guilt more than a tangible reality.
But most non-white South Africans did not fantasize about revenge. This is evidenced by the political demands expressed by anti-apartheid organizations and liberation movements. Rather, the ferocious fuel of their ambitions, which had sustained resistance for decades, was for a political freedom that would entail civil liberties and human rights coupled with an economic system that would free human life from the exhausting indignity of destitution and hyper-exploitation.
Although anti-apartheid organizations, due to their ideological diversity, had varying conceptions of what political order and economic system was required after apartheid’s demise, there were some shared ideals. People wanted safe neighbourhoods and secure housing, high standards of education, electrified communities, clean water, good healthcare and jobs that would allow them to not only meet their basic needs but pursue holistic well-being. This is what Mandela promised, a ‘better life for all’ that would secure social unity.
Mandela’s stature as a universally beloved and hallowed figure in modern history has mystified the consequences of certain choices he made as a statesman. Mainstream historical narratives highlight Mandela’s political prowess in leading South Africa’s transition to democracy by emphasizing his moral clarity, diplomacy, his negotiation capabilities and championing of racial reconciliation and decisive leadership as South Africa stood on the verge of civil war. But what is habitually overlooked and left untold is the macroeconomic framework Mandela locked the country into before the ANC had even won the general elections in 1994. Mandela was central to shaping a society that enjoyed greater political freedom in the absence of economic liberation. This contradiction feeds the explosive disappointment and despair of post-apartheid South Africa.
Mandela’s legacy, which cannot be severed from the legacy of the ANC, has remained a subject of contentious debate. Through Mandela’s compromises and capitulation to corporate power, apartheid died, but capitalism endured, evolving to take on a neo-liberal character. This pact with South Africa’s economic elites nurtured old inequalities and birthed new forms of injustice.
THE NEO-LIBERAL SHIFT AND THE RAINBOW NATION TODAY
Achieving Mandela’s vision of a ‘rainbow nation at peace with itself’ in which all are ‘assured of their inalienable right to human dignity’ has become an elusive dream whose realization is frustrated by the ANC government’s choice (spearheaded by Mandela), since 1994, to prioritize the interests of a few over the needs of many. South Africa, 30 years after apartheid, is a damning testimony to a series of perilous policy choices.
Optimism overlooked the tenacity of the international capitalist system. From 1991 to 1996, the battle for the ANC’s soul got underway, and was eventually lost to corporate power: we were entrapped by the neo-liberal economy—or, as Ronnie Kasrils, former ANC minister and member of uMkhonto weSizwe, cried out, we ‘sold our people down the river.’
A concrete definition of neo-liberalism is offered by David Harvey, academic and activist, who describes it as ‘a political project to re-establish the conditions for capital accumulation and to restore the power of economic elites’ and this is achieved through policies of market liberalization, deregulation, austerity measures, privatization, regressive taxation and labour market flexibility. Contrary to common belief, neo-liberalism does not simply entail the shrinking of the state and expansion of the free market. What neo-liberalism does require is the re-orientation of the state’s capacity so it can create and preserve the institutional frameworks appropriate to the practice of capital accumulation.
Whether Mandela was compelled by unfavourable structural conditions and unprecedented historical developments or took full agency during negotiations which led to the first democratic elections, by 1996, the ANC was dancing to the tune of the Washington Consensus. Rejecting nationalization, public investment, and the formation of a developmental state focused on social equity, Mandela and his ministers adopted the Growth, Employment and Redistribution Strategy (GEAR).
The fundamental policies of GEAR included the deregulation of financial markets and liberalization of trade in order to integrate (or some would argue, subordinate) South Africa into the global economy and attract foreign investment. Creating a hospitable environment for private investment included the government cutting expenditure on social services and public sector wages, while significantly lowering taxes on corporations and raising interest rates in an attempt to curtail inflation. The logic of private enterprise and free markets penetrated the public sector through restructuring state-owned enterprises to operate on a profit-making basis in an attempt to implement full-cost recovery. The true victors in post-apartheid South Africa have been the country’s ultra-rich and ownership class.
South Africa’s unemployment rate currently stands at 43.1 per cent (representing an estimated 12.7 million people). Joblessness, and the financial insecurity or poverty it induces, has come to define the experience of being ‘born free’ for far too many of the country’s youth. However, little respite is enjoyed by those who are employed. The labour market is characterized by stagnant wages failing to meet the soaring cost of living, and millions of people classified as working poor, earning wages that are either below or barely above the poverty line. Recent data illustrate the scale and severity of socio-economic crises.
Ten per cent of the population owns 85 per cent of the country’s wealth. Recent data has revealed that approximately 3,500 individuals (the top 0.01 per cent of the population) own more wealth than 32 million individuals. The spectacular abundance of a wealthy few has come at the price of destitution and deprivation for South Africa’s majority. An estimated 30.3 million people live in poverty (the majority of whom are Black), 15.3 million people experience food insecurity, and over ten million households live in energy poverty, while 14 million South Africans lack access to safe sanitation.
Public criticism and internal contestation of GEAR (from the Congress of South African Trade Unions, the South African Communist Party and ANC Youth League) did not shatter Mandela’s faith in the tenets of neo-liberalism. Mandela remained resolute that ‘GEAR is the fundamental policy of this organization, and we are not going to change it.’