To truly fulfil the promise of democracy, we must move beyond the idea that democratic elections alone can bring about meaningful change. What South Africa needs now is a developmental democracy, argues Lusanda Batala.
As South Africa marks 31 years of democracy, one stark reality remains: while our political freedoms have flourished, our economic transformation has not. Democracy brought us rights, but it has failed to deliver the kind of economic justice that would meaningfully improve the lives of millions of South Africans.
Unemployment is at staggering levels, inequality remains entrenched, and growth is sluggish at best. Despite the rhetoric of a "new South Africa" from 1994, the economic promise of democracy remains largely unfulfilled. The question then becomes: Can democracy, in its current form, deliver true development for South Africa?
Democracy without development?
When South Africa transitioned to democracy, the expectation was that political rights would translate into economic progress. After all, democracy is often seen as a catalyst for growth - it ensures political stability, promotes inclusive policies, and fosters accountable governance. But here we are, nearly three decades later, still grappling with some of the world's highest inequality rates, an unemployment crisis, and an economy that has failed to create sufficient jobs for a growing population.
The truth is, democracy alone does not guarantee development. While it has created a framework for political participation, it has not automatically addressed the deep-rooted economic challenges plaguing South Africa.
A key issue is that our democratic institutions, although robust in many areas, are often marred by inefficiencies, corruption, and a lack of coherence in policy execution. As a result, economic growth has been weak and inequitable.
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To truly fulfill the promise of democracy, we must move beyond the idea that democratic elections alone can bring about meaningful change. What South Africa needs now is a developmental democracy - a state where political freedoms are not just about voting but are actively used to ensure economic justice. A developmental democracy requires strong, transparent institutions and a coherent strategy for addressing the structural economic challenges that have persisted since the apartheid era.
This is not a call to abandon democracy. Instead, it's a call to rethink how we use democratic principles to support long-term economic transformation. For too long, we've been caught up in the cycle of political performance rather than sustainable policy-making. We need to prioritise long-term goals over short-term electoral cycles.
Countries like South Korea and Botswana offer valuable lessons. South Korea's transition from an agrarian society to an industrial powerhouse wasn't a result of democracy alone. It resulted from strategic, state-led policies, including state investment in key industries, long-term infrastructure planning, and educational reforms. Similarly, Botswana has maintained high levels of growth, low corruption, and political stability by prioritising strong institutions and good governance, proving that democracy can work with a focused developmental agenda.
In South Africa, we have the institutional framework to build such a model. The challenge lies in leveraging that framework for economic transformation. Our governance structures, though imperfect, have provided stability and a foundation for policy-making. What we need now is to harness these structures more effectively.
Structural reforms for economic transformation
A developmental democracy requires more than just strong political institutions - it also needs a capable state to drive economic transformation. This means investing in education that prepares young South Africans for the future economy, expanding industrial policy that supports sustainable manufacturing, and ensuring policies that boost entrepreneurship.
Moreover, we must address the inefficiencies that plague key state-owned enterprises such as Eskom and Transnet. These institutions are vital to the functioning of the South African economy, yet mismanagement and corruption have undermined their effectiveness. A developmental democracy would place a premium on transparency and accountability, ensuring that political elites do not hijack these entities but serve the broader public good.
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It is also essential to foster a more inclusive economy - one that goes beyond the narrow elite. BEE policies have made some strides, but critics argue they have benefitted a small group of politically connected individuals rather than fostered broad-based black economic empowerment. South Africa's industrial policy needs to focus on skills development, technology-driven industries, and green energy so the economy doesn't rely on raw commodity exports alone.
The path forward
For South Africa's democracy to reach its full potential, we must acknowledge that the current approach isn't enough. We need to embrace a model of governance that combines democratic principles with state-led economic planning. This means the government must take a more active role in economic development - investing in infrastructure, supporting innovation, and ensuring that economic opportunities are accessible to all South Africans, not just the elite.
However, this also requires the private sector to play its part. The state cannot do it alone. Business leaders must invest in inclusive value chains, contribute to youth skills development, and work alongside the government to tackle our national challenges. A disengaged or extractive private sector will only deepen our economic woes.
South Africa stands at a crossroads. The democracy fought for is far from broken, but it hasn't delivered the kind of development needed to overcome the legacies of apartheid. For democracy to truly work for all South Africans, a rethink of how it operates is needed. A developmental democracy that prioritises long-term economic transformation over short-term political gains is the key to unlocking South Africa's true potential. If reform of our institutions and policies is anchored on this focus, an economy that benefits all citizens, not just a few, is achievable.
- Dr Lusanda Batala is a development economist with extensive experience in public policy, development planning, and financial inclusion. He writes in his personal capacity.
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