Is failed economics behind S.Africa’s racial tensions?


Patronage and racial divides are offshoots of failed economics, this is according to independent strategy adviser Shawn Hagedorn. 

“It should not come as a surprise [that failed economics is responsible for racial tensions as there is a correlation between failed race relations and stressed economy,” Hagedorn told CNBC Africa.

“There are various factions in any political system and with a decline in commodity demand; people begin to use tactical messaging to undermine legitimate interests of other parties [as we have seen in South Africa].”


He added that, in any democracy this was normal behaviour between competing parties and ideologies.

“People should step back and accept that various sections of the community have legitimate interests,” he added.

Hagedorn said the way forward for South Africa was to focus more on competitiveness because the country was operating in a global economy.

He also warned that political forces as well as forces that drive social media had a tendency to categorise people as victims and villains.

“Economics need to be sorted as keeping race prisms on the way; you will never get to the core of [what requires urgent attention],” he said.

He also added that the global economy was hundred times bigger than what it was 200 years ago and South Africa should make propositions with this reality in mind.