THULI MADONSELA: Law and the economy through a social justice lens

Loading player...
Renowned Scottish economist Adam Smith once said, “Justice ... is the main pillar that upholds the whole edifice. If it is removed, the great, the immense fabric of human society ... must in a moment crumble into atoms.”

The edifice Smith spoke about was an orderly, peaceful society. It is important not to conflate law and justice. Smith saw justice (not law) as an answer to social cohesion and order, shored up by the rule of law.

In this country we know all too well that laws can be unjust and cruel — as they were under apartheid and colonialism. The constitutional vision — the underlying purpose being to heal the divisions of the past — was shaped with the full knowledge that the shackles that had restricted the economic participation of some for the benefit of others would endure beyond the life of the laws that had given rise to these shackles.

At the core of the constitutional promise is a society of equals anchored in human dignity, free from the toxic apartheid, colonial and patriarchal relations. Such a society is a socially just one.

When the constitution was adopted there was much fanfare, followed by a period that could be characterised as a new dawn. New laws and policies were introduced, and President Nelson Mandela and his cabinet spoke in unison about the need to meet basic needs and afford everyone equal opportunities in life, while also striving for global competitiveness. For a while there were signs that the shared prosperity promised in the constitution was gradually being attained. The economy was growing and poverty was declining, reaching its lowest-recorded level in 2004.

Fast track to 2020 and the shared prosperity has become illusive. Economic growth has shrunk to less than 1%. The latest statistics show that 55.5% of the population are poor — of which (disaggregated) 1% are white and 64.2% are African. The official unemployment rate is about 30% while unofficial unemployment — which includes those not in employment, education or training — is close to 40%. Furthermore, youth unemployment is said to be 50% overall and 70% among indigenous Africans.

Can the law make a difference? The law has enormous power to transform society and relations therein through transformative norming and rights enforcement. I am convinced that economics is shaped by many societal dynamics, which include the law. Colonial and apartheid policy frameworks offer a ...
16 Aug 2020 11AM English South Africa Business News · News

Other recent episodes

Toyota Motors SA CEO Andrew Kirby

Business Day Senior Motoring correspondent Phuti Mpyane chats to Toyota Motors SA CEO Andrew Kirby about the threats to exports, tax and Chinese vehicles in SA.
24 Oct 2024 9AM 39 min

Ford injects R5bn into production of hybrid-electric bakkies

Business Day editor-in-chief Alexander Parker speaks to Ford Africa president Neale Hill about the company's decision to spend R5.2bn to turn its SA subsidiary into the only global manufacturer of plug-in, hybrid-electric Ranger bakkies.
8 Nov 2023 9AM 13 min

Digital innovation no longer up in the clouds

The Covid-19 pandemic is the ultimate catalyst for digital transformation and will greatly accelerate several trends already well under way before the pandemic. According to research by Vodafone, 71% of firms have made at least one new technology investment in direct response to the pandemic. This shows that businesses are…
13 Sep 2020 4PM 6 min