To regain the shared sense of hope many South Africans felt when they lined up to vote in 1994, we need to narrow the empathy gap. Right now, we are at a tipping point, and could end up with nothing to gain and nothing to lose.
South Africa has the highest level of income inequality in the world. This is, undeniably, largely because the apartheid regime devastated the social and economic fabric of black people. It made very few investments in the human capital of the majority population, who received little remuneration for their labour. They seldom had opportunities to accumulate any wealth, and the land of many was forcibly redistributed. Apartheid also left many other deep wounds.
We have no evidence that either approach would be successful, although this also implies that they are both valid options until proven otherwise. To work, though, they would both surely require a radical overhaul of the education system. Currently, many of the poor can barely read and, consequently, can’t realise significant gains from capital.
On the other hand, consider what it must be like for a white person who has inherited the family business. There is no certainty that the business will continue to succeed. The business owner has had to sacrifice an enormous part of her life to keep it running. Even if she is wealthy, she could lose it all. She is also responsible for the livelihoods of her employees and has paid over a considerable proportion of her profits to the taxman. She often lies awake at night worrying.
Conversely, when teachers demand excessive wage increases they are, ironically, making it even more difficult to teach – because there is less money for textbooks, training or school infrastructure. Evidently, they are unable to empathise with the poor. This is when we may feel empathy for policymakers. Imagine how difficult it must be to balance the competing demands of public servants, the private sector and the poor.
To understand forced redistribution, we need to empathise with the proponents of this approach. Consider the enigmatic commander-in-chief of a prominent political party, who is exceptionally intelligent and charming, and a brilliant leader. He was raised by a single mother and experienced considerable deprivation and racism. To him, forced redistribution represents an opportunity to stand up for the African majority.
Ideally, we would find testing grounds for both approaches. It may, for example, be time for a state bank as well as more business-friendly zones that are located near to townships. Perhaps we can ask the wealthy to set aside some of the land they own that once belonged to black people, for the poor, in a manner that, with their help, leads to large returns. Perhaps it is time to ask the poor to recognise the role that the private sector plays in providing social protection.
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