The ‘markets’
The New York Times approves of now President Jacob Zuma’s cabinet picks. And it’s not just the Times, the Wall Street Journal approve of his choice for Finance Minister as well as the fact that the outgoing one gets to remain in the cabinet.
So what? In appointing his cabinet, Zuma had to keep one eye on the international ‘markets’ and the other on the nearly two-thirds of South Africans who voted him into office. All the media concern about how he would govern and whether or not he would ‘bow to the pressure from his supporters on the left’, the very same noise that accompanied the new presidency of Brazil’s Lula, ensured that no such thing would happen. For better or for worse, every ‘serious’ economic player in the world is in a polygamous marriage with ‘the markets’. And it’s one of those old-school marriages – divorce is not an option. The only way out is to do a Cuba, North Korea or Zimbabwe and commit economic suicide.
It’s a fascinating system. The range of options that are realistically available to the Irish government for dealing with the downturn are constrained by the markets. Even if the McWilliams proposal was adopted and the euro was scrapped, Ireland wouldn’t have economic autonomy. Britain, with its own central bank and monetary policy is still bound by the conventional wisdom of the markets.
All this would be well and good if the markets were some metaphysical positive entity, some type of economic god. But they aren’t. At the end of the day, aren’t the market simply the collective wisdom of a bunch of super rich guys (and maybe the odd girl here and there) whose chief interest is the continued existence and growth of their wealth?
I actually don’t think that the greatest threat to South Africa’s poor is Zuma embarking on some radical economic policy. He wouldn’t last a week if he tried to do that. His party would recall him like they recalled Mbeki and replace him with a market friendly guy the Wall Street Journal and New York Times would approve of. No. The Greatest threat to South Africa’s poor is the possibility that their interests and those of the Wall Street Journal reading ‘markets’ may differ.



Robert Mugabe, centre, flanked by Morgan Tsvangirai, left, and Arthur Mutambara