This article was first published by Daily Friend on 8 February 2025
Economic freedom is the fundamental right of every individual to control their labour and property. It is the freedom to work, produce, trade, and use their resources without government interference, enabling people to create better lives for themselves and their families. Economic freedom cannot exist without sacrosanct property rights. If property rights can be violated at will; under the guise of “national interest”; economic freedom becomes an illusion, and society begins a dangerous descent into chaos and poverty.
The recent signing of South Africa’s Expropriation Act into law is a stark example of this threat. This legislation allows the government to seize land without compensation, declaring such actions “just and equitable” if it serves the “public interest.” While it is framed as a means to address historical injustices, the implications of this law go far beyond land. It sets a dangerous precedent, granting the state unchecked power to confiscate any property of any kind – land, businesses, or personal assets -all under vaguely defined terms.
This is a slippery slope that leads to uncertainty, fear, and economic ruin. Property rights are the foundation of economic freedom because they secure the rewards of individual effort. When people know their property is protected, they are willing to work hard, invest, and innovate. Farmers who own their land will plant crops, improve the soil, and invest in better equipment, knowing they will reap the benefits of their labour. Entrepreneurs will take the risk of starting a business if they trust that their profits and assets are safe. But when property rights are eroded, these incentives disappear. Who will invest in land, businesses, or infrastructure when the government can seize it at their whim.
History provides ample evidence of the catastrophic effects of weak property rights. Zimbabwe’s land expropriation policies, implemented in the early 2000s, aimed to redress historical inequities but instead destroyed the agricultural sector, caused food shortages, and plunged millions into poverty. Venezuela, once one of the wealthiest countries in South America, collapsed economically after the government seized private businesses and property under the pretext of social justice. In both cases, the erosion of property rights decimated economic freedom, replacing it with poverty and chaos.
The loss of secure property rights does more than deter investment; it undermines trust in a society. When ownership is no longer guaranteed, conflict becomes inevitable. Disputes over land, businesses, or assets escalate as individuals and communities scramble to protect what they can. The result is not “equality” or “social justice” but widespread mistrust, instability, and often violence.
Poor people are the ones who suffer most when property rights are violated. Secure property rights are the foundation upon which individuals can build wealth and escape poverty. A piece of land or a small business, when owned, becomes a means of creating income, providing collateral for loans, or passing wealth to future generations. Without ownership, poor people are left dependent and unable to break free from poverty. Expropriation without compensation does not empower the dispossessed; it makes them more vulnerable by creating a system in which no one’s property is secure.
By contrast, nations that respect property rights and uphold economic freedom thrive! Countries like Singapore and Switzerland have built robust economies on the foundation of secure property rights. Their citizens enjoy higher incomes, better opportunities, and greater stability because they know that their property and the fruits of their labour are protected. These nations prove that property rights are not just an abstract principle; they are the engine of prosperity and human flourishing.
South Africa’s decision to legalise expropriation without compensation is not only a grave error but a betrayal of its people. While the aim of addressing historical injustices is laudable, the method chosen undermines the very principles necessary for economic freedom and prosperity. A just and effective approach would focus on strengthening property rights for all, providing clear and unencumbered title deeds, and encouraging private investment. These measures would empower individuals, boost economic growth, and create opportunities without eroding the freedoms upon which prosperity depends.
Without sacrosanct property rights, economic freedom is impossible. The ability to fully control one’s labour and property is not just a cornerstone of prosperity; it is a safeguard against tyranny and chaos. South Africa must reverse course before it follows the tragic paths of Zimbabwe and Venezuela. Protecting property rights is not just a matter of economic necessity; it is a moral imperative that ensures the dignity, security, and future of every individual. If South Africa fails to defend these rights, it risks condemning its people to a future of poverty, instability, and despair.
