When South Africans threw off the structures of apartheid three decades ago, the nation captivated the world. The early 1990s marked a victory for generations of freedom fighters, and the future of an inclusive South Africa was set in motion. There was no telling what could be accomplished with the full force of South Africa’s human capabilities, creativity, and resilience in combination with its industrialized economy and established comparative advantages in global trade.

There was good reason to be hopeful as the Presidency of Nelson Mandela ushered in an active period of reconciliation. By including all South Africans in the functioning of society and the economy, the Rainbow Nation seemed poised to leverage its substantial economic assets at full strength. In 1995, South Africa supported the 47th most complex economy in the world — on par with China (ranked 46th) and far ahead of any other African nation (Tunisia was next at 66th).

There was good reason to believe that the economy would grow rapidly, and opportunity would expand to many more South Africans. But more than a generation later, jobs are scarce and South Africa’s economic potential remains unrealized.

Report by the Centre for International Development at Harvard University