South Africa: Between Two Worlds
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Image: Dinesh Krishnan
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SKIN DEEP The Nelson Mandela Square, Johannesburg. South African cities bear the aesthetic stamp of the Western world
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mid swarming tourists and global media attention, for South Africa right now there seems to be just one goal — the Soccer World Cup. Last minute preparations are in full swing. The government is anxious. South Africans are ecstatic. And businesses are hopeful.
However, euphoric moments don’t change ground realities. Underneath there are many issues that this young democracy is grappling with. To get a flavour, go no further than Sandton, an upmarket suburb in Johannesburg. BMWs, Mercedes and Audis race on its layered smooth expressways. Glitzy digital hoardings and swanky hotel towers dot its skyline. One envies its expansive office complexes, beautiful residential complexes and well manicured greens. In the middle of Sandton, the sprawling Nelson Mandela Square is buzzing. Tourists pose in front of the giant bronze Mandela statue. Its European style open bars are crowded. With two big malls, huge multi-storeyed parking area, the square hosts some of the top notch global retailers and designer labels.
Sandton feels both sophisticated and modern. Except, it isn’t.
At road crossings, blacks beg for money, food or even garbage from your car. Houses look like
fortresses with high walls and electric fences. Car jacking is common and drivers secure their locks before starting. At the bustling Mandela Square poor youths trail tourists asking for money. In a country with one of the highest crime rates, you often cringe, feeling insecure and anxious.
South Africa looks like a First World country with Third World challenges. For very long, ruled by the whites, the country looked for inspiration to the classic West. And the impact is visible everywhere. South Africa has one of the most sophisticated financial services. Its aviation industry is fairly evolved. Its expressways aren’t far behind the German autobahns. The aesthetics of historical Europe show up in its buildings and structures.
But in the post apartheid era, South Africa is in search of a new reference point. Bogged by socio-economic challenges and nudged by a desire to play a bigger role in the world today, the country’s Third World underpinnings are significantly influencing the way it thinks, plans and positions itself on the global map. This subtle yet significant shift has some serious political, economic and social implications in the long run. “The gaze of policy makers has moved to the East. They are looking at the future and asking what should be our agenda,” says Adam Habib, deputy vice chancellor, University of Johannesburg.
The Shift
The evidence is clear. Take trade data as an indicator. Exports to and imports from its dominant trade partners like Germany, the UK and the US have been consistently shrinking (relatively) over the last decade even as that from China and India have been rising, says Gunajit Kalita, researcher, Regional Impact, ICREAR. India is among the top 10 trading partners today — there was zero trade in 1994. More importantly, investments from Asia have been rising. In the biggest deal, the Industrial and Commercial Bank of China acquired 20 percent stake in the South African Standard Bank for $5.6-billion, making it the largest FDI into South Africa. Over 100 Indian companies have so far invested around $3.5 billion into the country. Kirloskars and Godrej have been making acquisitions here.
But one can discern more nuanced shifts to the East as one talks to experts on South Africa. Earlier, B-Schools in South Africa would focus on case studies in the West; now they are bringing in case studies and business models of the East. Earlier, executive education programmes would typically take them to London and New York for immersion sessions; today it’s often to Mumbai and Shanghai. On the investment councils typically executives from Western MNCs like Oracle would be appointed; today it is companies like the Tatas who are being considered.
Even for some of the big policy issues like affirmative action, low-cost housing and social grants scheme, South Africa is increasingly looking at the emerging markets of Brazil, India, Mexico, China for ideas and learnings. More and more bilateral ties are being stitched up with these countries. Global platforms for banding together are being worked upon. The South-South dialogue under IBSA (India-Brazil-South Africa) is progressing well. During the Copenhagen climate talks last December, Brazil, South Africa, India and China jointly led the emerging markets agenda to critically influence the outcomes. “We are beginning to see conversations across a different set of boundaries,” says Habib. 
Infographic by Malay Karmakar
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