Publications
Publications
- March 2016 (Revised September 2021)
- HBS Case Collection
South Africa: A Fractured Rainbow?
By: Richard H.K. Vietor and Haviland Sheldahl-Thomason
Abstract
Twenty years after the end of Apartheid, South Africa's democracy persists, albeit with problems. A tripartite coalition — the African National Congress, the labor unions, and the Communist Party — still controls the political system but with diminishing economic results and authority. Since 2010, the economy has grown at 1.4% annually, with unemployment at 25%. Several national plans have been initiated but none with success. Most recently, the National Development Plan is the Zuma administration's approach. And then, at the end of 2015, cronyism sunk the stock market and the currency, causing a political crisis. Pravin Gordhan, an experienced bureaucrat, is once again Finance Minister but faces the tradeoff between growth and debt reduction. With the recent resignation of Zuma and the instatement of former deputy president and wealthy businessman Cyril Ramaphosa as President, it was still to be determined if a change in leadership would be enough to improve the country's economic and social situation.
Keywords
Politics; Development; Productivity; Labor; Labor Unions; Infrastructure; Government and Politics; Economic Growth; Performance Productivity; Economy; Social Issues; South Africa
Citation
Vietor, Richard H.K., and Haviland Sheldahl-Thomason. "South Africa: A Fractured Rainbow?" Harvard Business School Case 716-069, March 2016. (Revised September 2021.)