The late Nelson Mandela was one of South Africa's most important leaders. While most people remembered his work against apartheid in South Africa, the substantial economic role he played in the country has been largely overlooked. However, a report from Bloomberg Businessweek revealed that Mandela skillfully handled the transition from apartheid while avoiding widespread violence, repression or even economic collapse.
According to the report, Mandela had always believed that a strong relationship exists between economic and political progress. When he was released from jail, Mandela had called for a restructuring of both political and economic systems in order to be able to address the inequalities brought about by apartheid.
He dismantled the "homelands" system which was the core of white minority rule. The system prevented the colored population from getting jobs or promotions by confining them to supposedly sovereign states. With the end of the homeland system, South Africa was not anymore fragmented to 11 different countries and racial groups but moved as one economy.
The Businessweek report said that under Mandela, the growth rate of South Africa's gross domestic product increased. From less than 1.5% from 1980 to 1994, economic growth increased to a little below 3% from 1995 to 2003. The report also cited the research of Murray Leibbrandt, an economist from the University of Cape Town who said that the average personal incomes of white South Africans rose by 62% from 1993 to 2008 even with the competition for jobs brought about by the influx of internal migrants. Average incomes for Africans themselves rose more rapidly during that time period at 93%.
The report also cited the expansion of educational opportunities. Rates for secondary enrollment also went up to 70% from 50% from 1994 to 2005. Under Mandela, South Africa also became a hub of economic activity for its neighboring countries, with 70% of intra-regional investment flows coming from the country.
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