“It is not the strongest of the species that survives, nor the most intelligent — but the one most responsive to change.” — Charles Darwin
In tough times, people naturally start questioning the systems around them. Is there a better way? Could the economy work differently, and for more people? In South Africa, where the challenges in our economy are felt daily, these questions feel especially pressing.
One way to explore these questions is to look at how other economies function, and what lessons they might hold for us.
South Africa is often described as a mixed market economy, meaning it has elements of different systems working together. We have aspects of a free market economy, where the private sector drives growth, profit-making companies compete with minimal government intervention, and individuals are largely free to pursue their own financial goals.
At the same time, we see features of a social market economy, where the state plays a more active role in providing for citizens through social grants, public healthcare initiatives like the proposed National Health Insurance (NHI), and policies designed to redistribute opportunity.
Some elements even echo more command-oriented or communistic principles, where the state assumes ownership of key industries and controls economic activity more directly.
This mix is part of our history, but it also creates tension. On one hand, too much control and regulation can choke the innovation, efficiency, and accountability that markets are so good at delivering. On the other hand, too little oversight can deepen inequality and leave the most vulnerable behind.
So what lessons can we take from freer markets, those where governments step back and allow private enterprise to flourish?
First, free markets tend to reward adaptability. Entrepreneurs find gaps, create jobs, and drive innovation faster than centralised systems can react. In countries where the private sector is given room to grow, we often see stronger employment opportunities and a more resilient middle class.
Second, free markets encourage accountability and choice. Consumers “vote” with their money, rewarding businesses that serve them well and forcing others to improve or exit. This dynamic can lead to better services, better products, and a more responsive economy overall.
That said, a free market isn’t perfect and it isn’t a complete solution. Without safeguards, it can leave many behind. The real opportunity lies in finding the right balance: giving private individuals and businesses the freedom to innovate and thrive, while ensuring that the most vulnerable are supported and that prosperity is shared more widely.
For each of us, the question is the same: how can we, as individuals and as a society, respond to our challenges with creativity and resilience?
Whatever the answer, we’re here to help you navigate it — making thoughtful financial decisions no matter how the wider system evolves.
We advise, you thrive.