S-African central bank director issues caution regarding populism

(MENAFN) South African Reserve bank (SARB) Governor Lesetja Kganyago has cautioned against the rise of populist leaders, emphasizing the risks they pose to critical institutions such as central banks. Speaking at the Arbitration Foundation of Southern Africa event in Sandton, Johannesburg, Kganyago highlighted that populism is no longer confined to developing countries, pointing to its rise in mature democracies like the US and the UK, particularly since 2016, with events like Brexit and the election of Donald Trump.

Kganyago discussed how populists often target institutions, portraying them as elitist and disconnected from the needs of ordinary people. He explained that populist leaders typically promise to dismantle these institutions, believing they can take control and "clean out" corruption. However, he warned that such moves usually lead to chaos, incompetence, and corruption, as modern countries rely on institutions and expertise to function effectively.

The governor stressed that it is crucial for leaders and central banks to resist populist attacks while ensuring their institutions remain transparent, accountable, and effective. He urged leaders to act proactively to prevent institutional decay before populism takes hold.

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