Rise Of Populist Movements Research Articles

The Economic and Political Ramifications of Inequality in Post-Apartheid South Africa

South Africa is regarded as one of the most unequal societies in the world. Apartheid engineered a population with vast inequalities across racial groups. The nature of this inequality was primarily racially based. The political and economic trajectory of the last twenty years has somewhat changed the nature and composition of this kind of inequality but fundamental continuity of deep inequality is still somehow maintained. The post-apartheid distributional regime continues to divide South Africans into insiders and outsiders. Although the political pattern is still largely racially based, a new political landscape is beginning to emerge which is based on the complexity of class and race entanglements. The rising inequality within the black community is becoming a cause for concern for the continuation of the present developmental trajectory. It has created a fertile ground for the rise of populist movements and demagogues that will seek to take advantage of those neglected by the state machinery. This paper will seek to explore the links between inequality and economic growth and political conflict by tracing the origins of income inequality in South Africa, its evolution after the democratic transition in 1994; and its economic and political implications.

Restoring pragmatism in American governance

PurposeThe greatest asset of US capitalism until recently has been a blend of pragmatism with a passion to create the best socio‐economic system in the world. Today the USA is besieged by unprecedented budget deficit, public debt, financial crises, unemployment and rising anti‐governmentalism. The author believes the root cause lies in the elimination of the principles of pragmatism from governance, together with an assumption that the system which triumphed over communism is infallible. The purpose of this paper is not to find proof that an interventionist government would always be better or that higher taxes benefit the economy. Instead, using the examples of various policy mishaps, the paper seeks to prove the superiority of pragmatism over any ideology as a guiding principle of good governance.Design/methodology/approachThe author uses pragmatism as criteria for impartial, non‐partisan, non‐ideological evaluation of the state of the American economy and the causes for the rise of populist movements in the country.FindingsNeoconservatives were right to believe that markets do work. They will be needed to find solutions for skyrocketing costs of medicare, medicaid and job displacement caused by globalization. Neoliberals were correct to allow the development of profitable financial sector and give Americans access to cheap credit. However, what has been dramatically missing is a countervailing government economic policy to address increased riskiness of the financial markets, falling labor income, wealth distribution, education, energy dependence and an aging infrastructure. Liberal democrats did not propose comprehensive plan for government economic interventionism also they well understood its importance.Research limitations/implicationsThe paper is believed to be the first interdisciplinary (political economy, history, social economics, social psychology) attempt to identify the causes of the declining economic power of the USA.Practical implicationsThe paper can improve understanding of complex socio‐economic phenomena by the students of US economy and those who would like to sort out true facts from unproven beliefs and do not understand complex econometric models.Social implicationsThe paper can improve understanding of complex socio‐economic phenomena affecting lives of millions of people.Originality/valueThe paper states clearly that the problems of the US economy are not caused by globalization but they originate at home from self‐imposed ideological straitjackets by the decision‐making elites and their departure from traditional US pragmatism.