High unemployment is a symptom of South Africa’s economic malaise

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High unemployment is a symptom of South Africa’s economic malaise
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The average South African secondary school graduate does not get a first job until the age of 30

school in 2006 Delvia Mbalati spent the next 12 years looking for a job. Her search took her from her village in Limpopo, a province in the north of the country, to Johannesburg, where she spent a year studying for a qualification at a college which turned out to be a fraud. Whenever her mother scraped together funds she took other courses, but they proved useless too. Whatever work she sought the result was the same: rejection. The 32-year-old’s self-esteem plummeted.

The history of the South African economy partly explains these horrible numbers. Though precise data are hard to find, the unemployment rate grew steadily during the last two decades of apartheid, which can be thought of as a system of feudal capitalism for blacks and coloureds and cushy socialism for whites.

Certainly the former president had some unlucky timing. The global financial crisis of 2008, followed by a collapse in commodity prices, inevitably hit an open, mineral-rich economy. But South Africa has not recovered. The policies of the Zuma administration towards several of South Africa’s key industries bordered on the masochistic. Tourism was undermined by daft visa regulations.

Rather than add to the competence of the state, the Zuma splurge encouraged its evisceration. In private the honest civil servants who have remained are aghast at the woeful administration. Others worry about the effects of corruption at the South African Revenue Service, and the ever greater reliance on a small group of taxpayers. Just 1% of taxpayers pay 61% of personal income tax.

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