Page 33 - IRMSA Risk Report 2020
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3 . 5

            I R M S A’ S   R I S K - R E S I L I E N T  S C E N A R I O S     F O R   S O U T H
            A F R I C A



            The flags discussed by our scenario builders are key driving forces or variables that are often the most uncertain, but also
            the  most  likely,  to  shape  potential  future  scenarios.  They  are  early  warning  signals  that  fundamentally  shape  our
            future. Our survival as a country will depend on our unified response to these flags – a response driven by our common
            purpose.  The  scenario  builders  included  in  this  report  (Indlulamithi,  Frans  Cronje  and  Clem  Sunter)  each  built  their
            scenario  from  a  specific  perspective:  social  cohesion,  socio-economic  success  as  a  country,  and  global  influences
            respectively. In the table below, we position a consolidated view of the various scenarios from IRMSA’s perspective of
            building a risk-resilient South Africa. Thereafter, we discuss the flags we believe require reaction to avoid ending up in the
            worst-case scenario. Through logical combination of our scenario builders’ work, we have defined the following three
            scenarios:


                                              PERPE TU AL  HANGO VER
             Current trends of short-termism and social bankruptcy grow, with increasing distance between different groupings in
             society. We are unable to counter the elements of populism, racial polarisation, and short-sighted economic policies
             originating from some sections of our society. The logical outcome of this scenario is our inability to define and work
             towards a common societal purpose and the ultimate implosion of the State as each grouping pursues its own goals
             to the exclusion of all others.


                                     F AKE  IT  UNTIL   WE  M AKE  IT,  OR  NO T ?
             While we seem to understand the unfortunate results of the “Perpetual Hangover” scenario and have lofty goals to
             rebuild our national assets (investment growth, infrastructure, social capital), we are neither prepared nor desperate
             enough to make the tough calls needed to turn our country around. By hoping that things will eventually recover we
             are ignoring the elephant in the room and continue to hope for the best.


                                                 SPRING  OF  HOPE !
             As a nation, we jealously protect our national well-being. We take individual and collective charge of our future and
             firmly work to eliminating any “noise” in the system that could distract us from our common purpose. Although we do
             not necessarily all agree on everything, we are building a new national consensus to drive a resilient society. This society
             is based on our tolerance of each other as human beings and on the optimisation of our limited resources to achieve a
             common goal across the various sectors of our economy.



                                        WE  ARE  HERE                              WE  ARE  GOING  HERE






                                         PERPE TU AL          F AKE   IT  TILL   WE   SPRING  OF  HOPE
                                         HANGO VER             M AKE  IT   . . .  OR
                                                                     N OT ?
                                        Short-termism, social                           Taking individual and
                    IRMSA
                                        bankruptcy, ultimate   Lofty goals, not prepared to   collective charge of our
                                       implosion of the State  make tough calls, ignoring   future, building a new
                                                              the elephant in the room,   national consensus to drive
                                                                hoping for the best      a resilient society


                                     Gwara Gwara – A flounder-  iSbhujwa – An enclave   Nayi le Walk – A nation in
               INDL UL AMITHI
                                     ing false dawn          bourgeois nation        step with itself
                CLEM  SUNTER         Bloodbath               Forked lightning        Gilded cage
                                                                                            Rise of the
               FR ANS  CR ONJE       The break-Up         Tyranny of the left  Rise of the right
                                                                                            rainbow
                         TABLE   5 :    SOUTH  AFRIC A  SCENARIOS  –   WHERE  ARE   WE  GOING ?
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