The leaking of the public protector’s interim report into banking giant Absa’s apartheid debt has again brought the messy issue of how to address the injustices and resulting economic inequality to the fore.
The solutions often proposed are hotly debated and a common refrain is the need to boost growth, often with steps such as relaxing labour laws or other policies aimed at boosting competition among private sector companies.
But in many industries the private sector is made up of a few large firms that wield enormous power in their markets and potentially limit the entrance of newcomers. Banking is a case in point, where the likes of Absa are just a handful of large players. Read more...