South Africa: Political economy or virtual economics

Abstract

In 1994 South Africa was politically transformed from an oligarchy into a democracy. How has this momentous change affected the framework of economic policy? This paper approaches the question via the virulent unemployment that is South Africa's most serious economic problem today. The apparent answer gives great cause for concern: South Africa's policy-makers seem about to leave the real world of political economy to enter the illusory world of virtual economics instead.