Politics, economy and business: Unpacking corruption in SA | IOL News

Corruption in South Africa isn’t simply a matter of bad morals or weak law enforcement. It’s embedded in processes of class formation – specifically, the formation of new black elites. This means corruption is primarily a matter of politics and the shape of the economy.

I argue that a much deeper set of social forces underlies and shapes the struggles within the governing party, the African National Congress , and the society more broadly. These political struggles are inseparable from struggles over the shape of the economy.The primary process to change the economy has been the drive to accelerate the emergence of new black elites. But institutional interventions, such as black economic empowerment, have been insufficient.

This means that opportunities are few, demand is high and competition is fierce. In this context, the state is where people who are locked out are most likely to gain some access. I argue that this set of practices constitutes an informal political economic system. By a system, I don’t mean a structure which is centrally coordinated or planned. What I’m referring to is a pervasive and decentralised set of interlocking networks that reinforce and compete with one another in mutually understood ways, and include the use of violence as a strategic resource.

For the purpose of building institutions and attracting investment, it will be necessary to establish as stable a coalition as possible. This means it will have to be a broad coalition. One thing is sure: the coalition will include corrupt figures. It already does. The informal system of patronage politics will remain pervasive.

Perhaps, though, it is a useful fiction for the mobilisation of civil society, journalists and judges, which at the very least may contribute to containing corruption?

Ole Sad Sack...

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