Trump Should Warn South Africa on Land Expropriations

According topress reports, South Africa ’s government has begun expropriating privately-owned farmland without financial compensation, thereby ignoring the post-apartheid political settlement, which allows for land redistribution in the country on a “willing buyer, willing seller” basis.Eighteen years ago, Zimbabwe embraced a similar policy. As a consequence, South Africa ’s northern neighbor’s economy collapsed and the country descended into penury and political violence. This scenario is likely to repeat itself in South Africa. An attack on property rights will result in the destruction of South Africa’s farming community, dramatic reduction in agricultural p roductivity, and mass unemployment. It could also lead to a collapse of the banking sector (which depends on land as collateral for loan-making) and the local currency, hyperinflation, and even bloodshed.In the early 1990s, the United States was heavily involved in negotiating the transfer of power from the ruling National Party to the current government, which is composed of the African National Congress and the South African Communist Party. As such, the United States bears some responsibility for ensuring that South Africa ’s post-apartheid political settlement, including protection of minorities and private property, endures. President Trump should warn the South African government that if South Africa’s Constitution is amended to allow for expropriation without compensation, South Africa will be su...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs