Category Archives: banking sector (South Africa)

An EFFing catastrophe in the making

Dalrymple points out that the potential long-term, and even short-term, effects of the move to change the South African constitution to allow white-owned land to be expropriated without compensation are of course

catastrophic.

A crisis will be produced

to dwarf Zimbabwe’s, with starvation and famine avertable only if 10m or 15m South Africans succeed in finding somewhere to migrate to.

Julius Malema

The motion in parliament was proposed by Julius Malema, who leads the Economic Freedom Fighters (EFF). They dress entirely in red. The EFF

calls for radical redistribution of wealth, as if an economy were a stew or soup to be ladled out in portions.

The EFF leader,

who, if the large financial scandals connected with his person are anything to go by, excludes himself from his own economic egalitarianism, said in 2016 that he was not calling for the slaughter of whites — not yet.

Dalrymple explains that South Africa’s ruling party

does not consider the current ownership of land legitimate, for only illegitimacy could justify expropriation without compensation. Even without putting it into practice, therefore, the motion is likely to have a deleterious effect on South African farming and agricultural production, for who would invest in property that can be seized at the stroke of a pen, and is not regarded truly as his own?

As if a collapse of agricultural production were not bad enough, expropriation without compensation would also bring about

either the collapse of the South African banks, for South African farmers are deeply indebted, or confer huge debt obligations upon the government. And this is so even if (what is very unlikely) the redistribution of land were carried out in other than a grossly corrupt way, without political favouritism.