RECESSION
KHAYA SITHOLE: SA needs a president with backbone to steer it out of the crisis
A corrupt government squandered the advantages SA had during the financial crisis; now Cyril Ramaphosa needs to address the trust deficit
One of the most important lessons of the financial crisis of 10 years ago was the importance of credibility on the part of those in positions of trust. The relationship between society and the various stakeholders involved in the financial crisis reached its lowest point when no-one seemed to have any idea how the crisis had developed. These stakeholders found themselves having to justify their existence to a sceptical public. Ratings agencies, for example, had gradually entrenched themselves in the fabric of the financial system on the basis that they could provide assurance about the credit quality of the financial products in the marketplace. As it turned out, the complexity of the financial instruments that had evolved superseded the ability of the ratings agencies to keep up. Consequently, they found themselves dealing with a crisis of legitimacy that has taken a decade to re-establish. Coincidentally, that decade coincided with the lost years of the SA economy. As a player in ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.