South African economy; Policy initiatives; Apartheid; Role of government; Income disparities; Unemployment; Economic growth; Foreign direct investment; Reconstruction and development programme

The South African economy is characterised by extreme income disparity along racial lines. Many blacks are unemployed and poor, while most whites are better off. This uneven distribution of wealth is the direct result of the apartheid system that was followed by the government between 1948 and 1994. The case chronicles the state of the South African economy from the 1950s, when many apartheid laws were passed, till the mid-2000s, when the economy was showing good growth. It discusses some of the policy initiatives taken by the ANC (African National Congress) government after coming to power in 1994 and the implications of these policies for the South African economy. It also discusses the criticisms against the government's policies. The case ends with a discussion on the future prospects of the South African economy. The case has the following objectives: (1) to learn more about the apartheid system that was practiced in South Africa and the effects of the system on the country's economy; (2) to learn more about the problem of economic disparity between population groups in South Africa; (3) to understand the significance of governmental policy initiatives and their effect on an economy; (4) to critically analyse the various policy initiatives taken by the South African government to address the economic disparities; and (5) to evaluate the future prospects of the South African economy. This case is meant for MBA / PGDBM students and is designed to be part of the economics curriculum. The teaching note does not contain an analysis of the case