Economics

Economics

South Africa's cautionary tale

It wasn't so long ago that South Africa was seen as the natural leader of its continent, with bright economic prospects and a nascent, post-apartheid democracy. It developed strong trade ties with China, and, in 2010, was named one of the BRICS countries — with Brazil, Russia, India and China, the economies seen by some investors (the term was coined by a Goldman Sachs executive) to be the era's dynamic up-and-comers. But it hasn't quite turned out that way. This year, South Africa dipped into recession, with unemployment near 30 percent. What happened?