How often do we hear the claim that South Africa has “too many” rights? Socioeconomic frustrations often find their way to the constitution, which is accused of enabling adverse outcomes in the name of dignity for all.
The hardships of the past often fade in comparison to the challenges we face today. Yet March 1960 stands as a profoundly painful chapter in the nation’s history — one that undeniably shaped the foundations of the Bill of Rights. However, we must reflect on this question: are human rights truly detrimental to society and the economy?
Let us first admit: human rights do come at a cost. This year’s budget earmarks:
- close to R300bn for health;
- R290bn for housing, water and sanitation;
- R270bn for safety; and
- more than R500bn for education.
Human rights come at a significant cost, and systemic failures often lead to questioning their true value. While there’s undeniably much for the government to address, this should not overshadow the economic benefits achieved.
By ensuring basic human rights, the economy has experienced higher birth rates, a more skilled and productive workforce, and consumer-driven growth that fuels 60% of GDP. As costly as they may be, our rights serve as a crucial guide in navigating an ever-changing and unpredictable landscape and a compass amid uncertainty.
South Africa’s swift response to Covid, including the social relief of distress grant, came at a steep debt-to-GDP cost. Similarly, the disaster fund of 2024 addresses climate crises.
We’ve also learnt hard lessons from delays, such as the years preceding the 2002 ARV ruling, when thousands of lives [many of them economic contributors] were lost. The cost of inaction is always higher, and far outweighs the cost of timely, rights-based decisions.
Our human rights narrative is deeply rooted in context. Post-apartheid South Africa inherited a society intentionally structured with inequality, a reality that has shaped the developmental agenda in fiscal and economic policy. The commitment to redressing these issues necessitates policies like affirmative action, BEE and land redistribution.
While these policies have faced controversy — and been seen as polarising — they have been pivotal in reshaping the business landscape, stimulating the underdeveloped sector, cultivating the growth of black enterprises, and establishing a thriving black middle class.
Contrary to popular belief, there’s no inherent conflict between redress and the protection of property rights — especially within the framework of South Africa’s constitution, which remains supreme. This foundation has provided reassurance to both local and international stakeholders.
The protection of property rights has benefited asset owners — both liquid and fixed — while simultaneously enhancing South Africa’s appeal to capital and driving investment into the economy
Over the years, trillions in fixed investments have flowed into the country, even during greylisting periods. Cape Town’s global allure, with its cosmopolitan mix of luxury residences, and the ebb and flow of portfolio investments consistently demonstrate investor confidence in their rights of ownership.
The protection of property rights has benefited asset owners — both liquid and fixed — while simultaneously enhancing South Africa’s appeal to capital and driving investment into the economy.
Can South Africa improve? Without question. We are a nation with challenges, but also one with a conscience and a constitution that serves as a guiding beacon to prevent socioeconomic decline. As the saying goes, “A good chef never blames their tools.” Similarly, it’s vital to distinguish between the strengths and shortcomings of the constitution in policy execution or public administration.
Though the road ahead is messy, the focus on human rights has provided a solid framework for navigating fiscal and economic policy. And while this foundation should yield better outcomes, it cannot bear the burden alone. Stagnant GDP growth and South Africa’s top ranking on the Gini coefficient are not products of a flawed constitution or “too many rights”. Instead, they highlight failures in governance.
To quote Goolam Ballim, chief economist of Standard Bank: “There is a clear correlation between economic growth and respect for the rule of law.” This extends to social stability; respecting the rule of law is as fundamental to social harmony as it is to economic progress. South Africa’s constitution remains a powerful tool, but it requires proper use to unlock its full potential.
• Makhoba is economist and lead specialist: research & insights at Liberty, the insurance and asset management arm of the Standard Bank Group
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