From Economist
The joke circulating on social media is that South Africa’s cabinet is growing faster than its economy. Figures released on May 27th showed that GDP shrank in the three months ending in March. Two days earlier the country’s newly inaugurated president, Jacob Zuma, announced a cabinet of 36 (with 37 deputies). Pundits pored over the ministers’ strengths and shortcomings, yet it was their number that was most telling. A slim cabinet might have signalled that getting things done came before keeping colleagues happy. But so bloated an executive suggests that Mr Zuma’s real priority is shoring up his support within the ruling African National Congress (ANC) and with its allies. Politics trumped policies.
The reform-minded Pravin Gordhan was demoted from finance minister to a local-government portfolio. It was thought that he would either stay on or retire altogether, but his demotion sends “an odd signal on policy”, says Peter Attard Montalto of Nomura, a Japanese finance company. A bid for the job by Tito Mboweni, a former central-bank governor much respected in business circles, was blocked by the ANC’s allies in the trade unions and the South African Communist Party. Mr Gordhan was instead replaced by his deputy, Nhlanhla Nene (pictured above), a well-regarded technocrat, who might have hoped for a better inheritance than a stubborn budget deficit and shrinking GDP.
Read more at Economist
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