But taken together with financing of the De Beers transaction, the twin impact of these factors has given welcome short-term relief to the besieged and undervalued rand. The past week has thus broadly been one of good news for market sentiment. But gold is no longer in a position to wrought miracles. Furthermore, the global fears that drive a higher gold price may reflect a world we may not like for other reasons. All this should therefore not obscure the fact that South Africa must continue to diversify its economy.
Windfall gains are no substitute for a consistent long term economic and industrial strategy.
And it should not divert this country from the structural changes still needed to position itself successfully in a global context. But it is also creating a new systems competition which is, in the longer run, inducing countries with the wrong attitudes and policies to emulate the reforms of their successful counterparts. This is the competitive edge South Africa must imaginatively develop and where it must succeed if it wants to rise in the emerging market league table. And the only eventual solution is to create a productivity breakout which raises the returns to both capital and labour. Much of our future will thus depend on whether we successfully manage the challenge of globalisation, or whether we encourage irrational and reactive resistance.