Harvard Economic Report Declares South Africa a Failing State

Decades of poor governance by the African National Congress have led to the collapse of state services in South Africa, pushing millions of people into poverty and despair. A report from the Growth Lab at Harvard University indicates the failure of South Africa’s economy to grow, and blames the ANC for causing significant social unrest in the future.

In 2023, the South African economy grew by just 0.9 percent in terms of GDP, while other countries in the region saw much higher growth rates. According to the World Economic Outlook by the International Monetary Fund, the country’s economic performance indicates an inability to achieve inclusive growth.

The detailed report emphasizes the failure of the ANC’s policies, which were meant to bring more black South Africans into the economy. Instead, ANC’s policies have only served to enrich a small black elite and increase inequality in the society.

This report was a result of two years of research by a group of economists, and it stated that South Africa’s national economy is losing international competitiveness.

Chief economist Iraj Abedian confirmed the importance of the report. He noted that the report was a confirmation of what domestic analysis has been saying, and that the ANC’s performance has been the main cause of the country’s issues.

South Africa’s high unemployment rate is the highest in the world at around 35 percent. The ANC has been criticized for its adherence to strict affirmative action regulations that have forced skilled white professionals to emigrate. According to the report, the ANC’s black economic empowerment rules have failed to promote empowerment and have only entrenched inequality.



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