A DRIVE down the N3 from Gauteng towards the Drakensberg offers useful lessons on the economics and politics of water management.In economics, an important distinction is made between stocks and flows, wealth and income. A large bank balance is nice to have, but if not replenished or used to generate income, it will run out. So, most politicians approach nationalisation with circumspection. They realise that if the state takes wealth but cannot manage it, income will soon dry up. That’s a good reason to focus on policies that encourage the use of the nation’s wealth to produce goods, services and incomes. Generate (and save) income and there will be more wealth to share.Political science deals with a different kind of capital. Individuals and parties that demonstrate achievement or mobilise their forces to gain positions of power effectively build political capital. They can use that capital in more or less productive ways. It can be dispersed through patronage to maintain power or ...
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