I wish to make a comment about the article "Why is the Rand Falling" (Feb 2002. No273). Although this article covers just about all thc possible reasons that could affect the rand, there is, I believe, one major omission. (Yes, I know everyone has a different theory - including me). Why wasn't high crime, or the perception of high crime, not mentioned in the article?
I believe the perception (true or not) that SA has a very high crime rate and that the government is not doing enough to combat it is a major factor that undermines the value of the rand.
The SA Police have had few or no recruits for the past few years. Some communities in SA have to contribute towards buying and fuelling police vehicles just to have them attend to crime in their areas. There have also been a few high profile cases where members of the police have committed armed robbery. The police also seem to be bent on implementing their Affirmative Action policies at the cost of the community as a whole.
The "Private security" industry in SA is one of the fastest growing industries as people obviously feel insecure and feel the need for more security than that which the police can provide.