Scenarios 2025
Always thinking ahead, the ANC-led government this week published its 'Scenarios 2025', which aims to stimulate discussion about some of the challenges South Africa might face after 30 years of democracy.
SA Scenarios 2025, looks 'back' at three paths that the country may have traversed by 2025. The research presented, and the scenarios envisaged, are all meant to provoke discussion and debate.
Scenarios are not predictions, nor roadmaps; they are constructed stories about a particular point in the future and some informed speculation about the crosscutting paths that might get us there. The power of scenarios lies in provoking a sense of what might be possible and in combining probabilities in ways that none might have thought of previously.
Scenarios often allow the detection of faint signals that may disrupt even the most thorough planning cycles. They are designed to help identify pitfalls and options, and factors in the future we may choose to adopt or avoid. The ANC and its government invites you to use these scenarios as part of a process of thinking about what we can and should do, now and in the near future, to avoid risks, obstacles, bottlenecks and blockages to achieve more than we can currently imagine.
The research for this scenario exercise started with a concerted attempt to understand a wide range of forces at work in the world and in South Africa in 2008. This involved interviews with well-placed South Africans, as well as a series of working sessions with a core group of people, drawn from academia, business, unions, political parties, and think tanks. As a result, the ANC government was able to identify 24 'variables', or factors that are key shapers of our reality and which we need to understand to construct views of the future.
Confidentiality was guaranteed, so as to encourage frank discussions. All interviews were transcribed, and elements of the transcripts edited so as to protect the interviewees' identities.
Key trends for each variable were identified. From the variables, seven Key Driving Forces (KDFs) were identified. The KDFs are aggregations of trends that are likely to be the most fundamental shapers of our world and our country to 2025, and that are most likely to create the context that the seventh democratically-elected government and society at large will face in the middle of the 2020s.
The KDFs form the bedrock of the scenario storylines. While some KDFs identify factors that can be influenced through the agency of government, great attention is paid to those variables with the highest levels of uncertainty and impact. As such, what the storylines depict are three of the possible combinations of the various KDFs. There are many more combinations that can be devised, but these have been constructed to provide the most plausible but challenging narratives of what hurdles the country might have to go through, in the build-up to 2025.
The scenarios are not 'worst-case' scenarios - a technique often used to contemplate unlikely, but not impossible, turns of events in the future. A deliberate effort has also been made to avoid positing a 'best-case' scenario. The scenarios are therefore neither 'worst-case' nor 'best-case' scenarios and try to avoid the simple polarities of 'high road', 'low road' scenario making. Rather they steer towards various plausible combinations of events from clear antecedents in 2008.
Having 'seen', at least in our mind's eye, some worked-out glimpses of the future, we might be moved to try to anticipate some outcomes and secure others. Indeed, these scenarios are meant to provoke introspection about long-term planning, about how policy is translated into action in order to help avoid calamity and to embrace opportunities more fully. Below we examine some of the Key Driving Forces.
Shifts in global economic power
The rapid industrialisation and growth of China and India, and their burgeoning demand for resources and markets, is changing the world in profound ways. By 2025, given current trends, China's GDP is expected to be about the same as the USA's (the USA's GDP is currently more than double the GDP of China and India combined) reflecting three decades of Chinese growth at more than double the rate of the USA and the EU.
Will the growth of Brazil, Russia, India and China and the oil bounty of many Middle East countries do more for the economic growth of Africa in the next 20 years than 60 years of Western investment and aid have achieved?
While this appears likely to be the case, there are significant dangers too: China and Russia may be as cavalier in their disregard for democracy and human rights as the USA and ex-colonial powers have been in the past. Trade as a percentage of global GDP is shifting upwards at an accelerated rate. By 2025, trade in goods and services will account for more than half of global GDP. The ability to trade with others is becoming more important to any country's ability to grow than ever before. Africa's economic clout also grows significantly by 2025; the key question is how much of this is driven by South Africa, or how much others take the lead over time as other continental powers grow faster, or are led better, than South Africa.
Shifts in global political power
While shifts in international power relationships partly reflect shifting economic power, they do not do so in mechanical ways. The USA military budget is still larger than those of the next 15 largest economies, including China, combined. By 2025, the USA has still by far the most formidable armed force in the world, although on a much smaller scale than in 2008.
Despite this, a multilateral approach to global problems is likely to have taken root, with an expansion of early intervention mechanisms, the rapid deployment of peace keepers, and more united action by formations such as the UN, the G5, G8, G13 and G20.
Current trends suggest far fewer armed conflicts than ever before in human history over the next decade or so. But it is also possible that conflicts over resources disturb this trend: are there sudden resource tipping points that would propel otherwise peaceful nations into war?
And how much more powerful will Africa, or key African states or blocs, become as world players, and what will shape this?
South Africa's leading role in re-shaping elements of international discourse over the past 15 years, and in re-imagining Africa, may be challenged by other fast-growing power blocs in East and West Africa, and by South Africa pursuing more narrow national and regional interests in the future.
Resource constraints
The world is already caught in an energy gap between the age of fossil fuels, particularly oil, and the slow development of the coming age of alternative fuel sources.
By 2025, nuclear, hydrogen, solar and wind will be the predominant emerging energy sources. But, on current trends, the transition may not be well managed. Higher costs of food production may become ever more entrenched, and international tourism and mobility are likely to be negatively affected.
The growing shortage and deterioration in quality of other critical resources, particularly soil, air and water, are also highly likely to become key global issues. Locally, three additional KDFs mirror these global drivers.
South Africa's economic growth
An elemental shaper of the future of South Africa is our economic performance. How fast does the economy grow and along what paths? How competitive and productive does it become?
The way in which the fruits of this growth are shared is as important as growth itself: is the economy ever able to create decent and sustainable jobs at a rate greater than the growth of the labour force?
Faced with persistent long-term structural unemployment, what measures will the new government adopt? How responsive will the private sector be to national imperatives?
Will the rapid decline in South Africa's manufacturing, mining and agricultural sectors in relation to their relative contribution to GDP be arrested and reversed - and how?
As critical as these internal factors are, South Africa's relationship with Africa will be as important. Can our economy become more integrated into Africa?
Governance How able, competent, efficient, honest and legitimate is government going to be in 2025, and in the years leading to 2025? Is it able to promote national competitiveness and drive the economy forward, or does it inhibit innovation, productivity and social inclusion?
How well does it deal with the key issues of health, education, crime and corruption over time?
Related to this are matters pertaining to electoral politics and dynamics within the largest political alliances: the tone of political discourse, the conduct of the leadership and centripetal and centrifugal trends tugging at the ruling party. Ultimately will leadership engender a greater sense of purpose and unity?
Social fabric
The state has the resources to fashion at least a basic sense of nationhood, and a sense of human solidarity that cuts across class, gender, race and ethnic divisions. It can do this, among other ways by providing citizens, especially the youth, with the skills to operate in a 21st century economy, increasing citizens' average levels of wellness, and creating a sense of security and belonging.
Government can also help invoke a sense of pride and aspiration by articulating an engaging national narrative and by standing for the highest good. But there are limits in this regard. Many of the dynamics that impact on social cohesion depend on value systems within society. Their forging is the domain of educational, religious, community and other sectors, including the nation's arts and cultural productions. How will government interact with these socialising forces for maximum national benefit?
The story of 2025 - of what South Africa faces then, and the routes we took to get there - will be told mostly in reference to these key drivers. The answers will describe the paths we travel to the seventh democratic election in 2024, and to the South Africa and the world we live in by 2025. The scenarios outlined reveal the broad contours of three of these possible paths.
They are not exhaustive by any means. We hope that they begin a dialogue about the future we choose. The ANC invites readers to interact with it and its government to define the paths best to travel to a prosperous future.
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