An Incomplete Transition: Overcoming the Legacy of Exclusion in South Africa

South Africa has come a long way since the advent of democracy, but its transition remains incomplete. The first three clauses of the Freedom Charter--the historic 1955 document setting out the central objectives of the democratic movement--were (i) the people shall govern; (ii) all national groups shall have equal rights; and (iii) the people shall share in the country's wealth. While the first two objectives have largely been achieved since the first democratic elections of 1994, historical disadvantage remains a determinant of income, wealth, and opportunity, notwithstanding some progress. As such, the economic transition from a system of exclusion under segregation and apartheid remains incomplete. This SCD identifies five key constraints. These are (i) insufficient skills; (ii) the skewed distribution of land and productive assets, and weak property rights; (iii) low competition and low integration in global and regional value chains; (iv) limited or expensive spatial connectivity and under-serviced historically disadvantaged settlements; and (v) climate shocks: the transition to a low-carbon economy and water insecurity.