Thabo Mbeki speaks to packed hall, some locked out. Plus all event photos.

Outgoing South African Reserve Bank governor Tito Mboweni was among several world finance experts who did not provide adequate leadership to prevent the global finance crisis, former president Thabo Mbeki said on Wednesday.

Mbeki was speaking on the "effective exercise of leadership" and the future role of the youth at the University of the Witwatersrand, in Johannesburg.

"The effective exercise of leadership must, in part, be based on as thorough an understanding as possible of objective reality," he said.

Mbeki was addressing a packed hall. Crowds of students trying to push their way into the auditorium were locked out by security officials.

"The correctness of this view is confirmed by what happened which led to the current global economic recession and the various questions this has thrown up," said Mbeki, who was welcomed with loud cheers.

Mbeki said most economists failed to predict the global financial crisis, and quoted from speeches delivered by the chairman of the United States Federal Reserve, Ben Bernanke, in April this year and Mboweni, in March this year.

"On 13 March 2009, the outgoing Governor of the South African Reserve Bank, Tito Mboweni, went further to say: 'The global financial system is a finite entity, and although risk can be passed around, it does not disappear.

"'We had probably underestimated the inter-linkages of financial systems across the globe, and the extent to which globalisation had created a complicated network of circuits for the contagion of financial risk...'."

Bernanke had said the financial industry "designed securities that combined many individual loans in complex, hard-to-understand ways".

These new securities later proved to involve substantial risks, risks that neither the investors nor the firms that designed the securities adequately understood at the outset.

"These statements by two central bank governors emphasise precisely the point that even they failed to understand what was happening in the global financial markets and therefore did not provide the leadership that was necessary to avert the financial crisis which led to the current global recession," Mbeki said.

He also referred to a New York Times article written by Noble Laureate in

Economics Paul Krugman in which he asked how economists failed to predict the crisis.

"Professor Krugman had made the charge that because they failed to understand objective reality, the world's economists failed to see the then impending global financial and economic crisis," said Mbeki.

"Accordingly, they failed to provide the leadership which could have resulted in various interventions being made, which would have saved the world from a crisis that has resulted in the impoverishment of hundreds of millions and an alarming growth in levels of unemployment."

The aftermath of the global recession raised several important questions, including how to limit the centralisation of capital to avoid the "emergence of monopolies and oligopolies made up of companies that are too big to fail".

Also, the role of the state in the economy, regarding the ownership of companies and the regulation of the market, needed to be discussed.

"I pose these questions without providing any answers, once again to underline the point that our young emerging leaders will have to participate in the effort to answer them.

"For them to be helpful to society, those answers will have to be based on a profound understanding of the process of contemporary social development."

In South Africa, young leaders would always have to grapple with issues of social development, transformation and how to create a non-racial society, said Mbeki.

"I am certain that there are very few South Africans, if any, who today would, for instance, question the need for us to transform ours into a non-racial country.

"The reality however, is that because this objective, like the others mentioned in our constitution, cannot be realised in a short time, the young emerging leaders will still be faced with the task to lead the country as it continues to strive to implement the constitutional prescription to build a non-racial society."

On how to be a good leader, Mbeki, who was removed from office by his own party, said honesty was a key characteristic.

"To lead, means to engage the people in an honest and sustained manner to mobilise them so that they too play an active and conscious role in the process of fundamental social transformation rather than remain as immobilised spectators who expect government to ‘deliver'.

"It means learning the habit always to tell the truth and thus cultivate the confidence of the people in you, who will be their leaders," said Mbeki.

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responses to this article

Mbeki I cannot believe the audaity of this fool pronouncing on someone else's failed leadership, either imagined or real. For someone whose sick idealogy resulted in the premature death of hundreds of thousands of his fellow countrymen, he . .more should count himself lucky to be speaking in front of a forum of sychophantic student idiots, rather then answering to a human rights tribunal in the Hague. Mbeki must never be allowed to get away with what he has done to South Africans. . .less by LJS on September 23 2009, 16:37 Find this comment inappropriate? Report it

What's happened to the African Renaissance? It looks like Mbeki's African Renaissance has left us back in the Middle Ages... by Plato on September 23 2009, 16:50 Find this comment inappropriate? Report it

Mbeki my hero I'm sure we could have predicted the global financial crisis if we had eaten more garlic. In fact we would all have realised that a global financial crisis does nor exist. EISH by John on September 23 2009, 16:52 Find this comment inappropriate? Report it

Not reading President Mbeki correctly I submit that it is important for people to first read President Mbeki's speech before they can comment on it. Actually, he is not being critical of Mboweni and Bernanke. He singles them out as amongst the best who , kile many, did not see the . .more crisis coming in the way it did. Nothing wrong with that. MOst of the world leaders did not see this crisis coming too, including President Mbeki. So, please do not just throw mud at him like that. Thank you very much for the opportunity to comment. Jabu . .less by Jabu Mhlongo on September 23 2009, 16:53 Find this comment inappropriate? Report it

I preferred U quieter, Mr Mbeki... simply unbelievable by Quiet on September 23 2009, 16:54 Find this comment inappropriate? Report it

.less FYI a brownnoser. someone who will seek to please a person of authority in order to obtain some grace by HoHum on September 23 2009, 16:56 Find this comment inappropriate? Report it

Please go back to retirement Mr Mbeki you also failed to lead the country, on your watch things went from bad to worse: 1. Crime -- has lead to emigration of skills (and potential job creators) 2. Public Health -- is in shambles, now I have to pay for . .more medical aid from my own pocket even though my tax funds public health 3. Education -- OBE is such a C***** system, when I have my own kids I will have to take them to an IEB school 4. Insurance -- Because of the crime rate, car insurance is ridiculous I cant even afford a Golf 5 GTi 5. Homeland security-- Hillbrow is no longer part of SA 6. Eskom -- Now we have to pay through our noses for electricity 7. Infrastructure -- Next time when you are bored, drive to Mafikeng and check out the roads! . .less by TT on September 23 2009, 17:03 Find this comment inappropriate? Report it

Mbeki Failed To Lead In Local Crisis No one made this speech, but someone should have. No no poetry needed. by Aftermath on September 23 2009, 17:09 Find this comment inappropriate? Report it

the little man speaketh... I wish he would take his own advice i.e on his "quiet Diplomacy" policy ala Zim and keep quiet, diplomatically. The less he says the better. Zim, Aids, Arms deal, etc. African . .more Renaissance? Please. Please keep quiet, Mr Mbeki. You were so useless your own party recalled you. Go away now. . .less by little John on September 23 2009, 17:21 Find this comment inappropriate? Report it

P thats all there is to this article...better to read the actual speech; than read this article by Sensationalist headline... on September 23 2009, 17:27 Find this comment inappropriate? Report it

I hope that the students which were ..... listening to Thabo realize that the scr&&wed up with the Zim policy, with the AIDS policy, consequently whatever the man says should be taken with a pinch of salt! by Sipho on September 23 2009, 17:27 Find this comment inappropriate? Report it

This beggars belief. This is the leader who took the Nomquaqise syndrome to new heights. No individual has ever been responsible for more premature African deaths than Thabo Mbeki and his HIV does not cause AIDS denialism. Good leadership means that all objective measures for a successful society become better. Under . .more Mbeki the average age of a South African has decreased. . .less by semaarnet on September 23 2009, 17:29 Find this comment inappropriate? Report it

Inflated Perception of South African Impact Another point is that Mboweni and indeed South Africa itself could have disappeared from the face of the Earth and it would have made little difference to the crisis either way. We are a less than a drop in the global economy... by Bob on September 23 2009, 17:31 Find this comment inappropriate? Report it

HOW COULD HE?..WAS AN INEXPERIENCED ANC APPOINTEE!!!! Hell,how many braincells do you guys have????? by Trader on September 23 2009, 17:33 Find this comment inappropriate? Report it

@LJS Indeed LJS, but being accompanied by FW De Klerk, Adriaan Vlok, Magnus Malam, Philip Powell, Basson and Anglos of this world for supporting a evil system and genocide. by zozo on September 23 2009, 17:48 Find this comment inappropriate? Report it

Speech Failed Leaders should just retire and go away by The Godfather on September 23 2009, 17:48 Find this comment inappropriate? Report it

The pot calling the kettle black!! Now all you racists, bunny huggers out there, I have said the B- word! Yes. That hugely successful, rocket scientist, fired ex-president is blamimg another , dare I say it, black leader of having been a failure! I love . .more it!!! Now all you young entrepreneurs out there, do as the good ex-president says and not what he does and you too will rule the world!!! I have tried to make sense of what the obovementioned speech meant, but failed........Are you sure that Mbeki is not seeling RA's for Old Mutual, or maybe he is working in their property division!! That explains it!! Even Zoom Zoom is making noises which make more sense that loser! Haibo! Lo mfaan iya ganga gabe`......Nkosi lekalela tina! . .less by Devil's Advocate on September 23 2009, 17:50 Find this comment inappropriate? Report it

Total BS. Has a single SA bank tanked? Didn't think so. The mess came from overseas. Mboweni did OK. Plus he resisted calls to abandon inflation targeting. by *Dude on September 23 2009, 18:06 Find this comment inappropriate? Report it

@ zozo Oh, you poor, poor, silly little person,- go away ,- just go away. ( By the way , its Magnus MalaN, not MalaM, (should be 'Baas" Malan to you), and its 'AN' evil system..... not 'A' evil system. This is what outcomes based education produces. by Voortrekker on September 23 2009, 18:54 Find this comment inappropriate? Report it

ever heard of the 'black swan' concept? i am so amused by all those attacking mbeki (personally) and calling him a failure. forget the title of this article; what if it was someone else who'd made the same point? what i understand from mbeki's point is exactly what nassim . .more nicholas taleb (auther of the black swan) warned against in 2007. but then again, this is south africa. i bet many of the mbeki critics in this article are familiar with the notion that 'one should never fail to try'. at least mbeki did what he thought was good for this nation. he does have his shortcomings too; like many other leaders. . .less by umhlali on September 23 2009, 19:13 Find this comment inappropriate? Report it

Mbeki emphasises the need for a non racial society Actually he is racist to the core - remember his rant against immaginary Whites whom he accused of viewing Blacks as sexual primordials ie that Blacks engaged in rampant primitive sex, causing AIDS. He was personally busy trying to prove . .more AIDS did not exist, and so he concocted this mythical White notion as a diversionary tactic. In this exercise he lied about the truth around AIDS, and in so doing, exposed himself on another of his platforms ie "always tell the truth". But whatever his agenda is, I say the following: The ANC has had one generation to educate, the most powerful "EMPOWERMENT" possible. The result of Grade 12's today ("Matric") is an illiterate and inumerate mass of worthless creatures, our so called "youth of the future". Presiding over this incalculable disaster was our CEO over the last 8 years, one Thabo Mbeki, reputedly a man focussed on the value of intellect. It seems he was focussed on one intellect only, his own, hugely distorted by his ego. The rest of the upcoming Black Nation got forgotten. I am financing a Black Grade 10 learner to learn Maths privately at R900/month, because her school can't do it. That's my contribution as a White. Let's see where it all goes. . .less by Andy on September 23 2009, 19:45 Find this comment inappropriate? Report it

Black attitudes My char asked me to find 3 weeks of holiday employment for her Grade 10 daughter. There is no employment for such a person. I decided to intervene, and sent her child to learn Windows, Word, Exel etc over 3 weeks privately (R5 000). Then I . .more bought her a computer and one Gig for 24 months of 3G, so she could understand IT, and practice her IT courses I gave her (R20 000), and to give her a giant window to the world. My char earns R3 000/month - how would she have ever afforded this? Her daughter at 17 was entirely oblivious of how the world worked. Her Grade 10 - 12 subject choice iro Varsity exemption was not explained at school. Her Maths teacher was disinterested in my efforts to improve her maths outside of the school - understandable, as he was failing and now she would succeed. To these issues I would like to ask Mr Mbeki "what did you do to advance the intellect of the Black children under your care during your 8 years of rule". The man never attended to this, and he is therefore forever a failure to the Great Black Cause. As a White, I am doing more to advance the Black Cause than Thabo Mbeki ever did. . .less by Andy on September 23 2009, 20:06 Find this comment inappropriate? Report it

@ Andy You put it over so well. You know, it all seems so pointless, --we put hundreds of years into building this beautiful country, - only to have it reduced to the barbaric savagery it was prior to our arrival. So, so tragic.-Why? ? ? by Voortrekker on September 23 2009, 20:22 Find this comment inappropriate? Report it

mbeki A bit rich coming from you! Who was the failure? by cynic ii on September 23 2009, 20:36 Find this comment inappropriate? Report it

Failure Expert knowledge failure- HIVAids, Health,Education, Zimbabwe- just suck on a potato and some beetroot and everything will be okay.Up the African Renaissance by Nancy on September 23 2009, 23:04 Find this comment inappropriate? Report it

Sentiment The boom was built on sentiment or irrational exuberance, if you were and that the good times would last forever. The moment the bubble of that mis-placed confidence was burst, coupled with some really dodgy lending practices by those usually most . .more stodgy of people - banks - the only way was down. Yes, the bubble was all built on greed and what I don't see is how it's not going to happen again and again. Cycles repeat themselves and this is one of those cycles, except it appears they're coming quicker these days. Frankly, I see little difference between merchant bankers and our own local politicians: They're really not interested in creating long-term prosperity for all but rather in their next profitable deal and their bonuses. I also find it extremely rich that Mr Dopey, and sometimes visitor to these shores, wannabe intellectual feels entitled to pontificate when the biggest crisis of the last fifteen years was denied and ignored by him and his equally dopey, drunken kleptomaniac. . .less by buffalobill on September 23 2009, 23:36 Find this comment inappropriate? Report it

the pot has just called the kettle.... ....black by charlie on September 24 2009, 05:40 Find this comment inappropriate? Report it

Mugabe Mbeki supported Mugabe. Kept him in power. How many hungry people are there in Zim? Thats pathetic. He should go to Zim and ask Bob for a farm. by Bok on September 24 2009, 07:33 Find this comment inappropriate? Report it

Out of context This is like if some physicist said "even Einstein couldn't have predicted this" and the papers print "Scientist says Einstein had no vision". Cr*p by Dre on September 24 2009, 08:31 Find this comment inappropriate? Report it

There are too many public holidays. Can some-one decide for the government which holidays to abolish. The ANC regime can't make decisions. by HY on September 24 2009, 09:19 Find this comment inappropriate? Report it

BLAME This is a bit rich coming from someone like Mbeki !!!!! His presidency was rife with constant failures and lack of insight !!!! by neil on September 24 2009, 10:51 Find this comment inappropriate? Report it

@ Andy: Rather donate your excess wealth to animal welfare organisations... Animals are more appreciative and less likely to bite you one day when your back's turned. And remember - it's the giving that's important, so you'll go still to heaven. by Alset on September 24 2009, 13:05 Find this comment inappropriate? Report it

@ Dre Neat comment - and on the mark. by Alset on September 24 2009, 13:43 Find this comment inappropriate? Report it

If I recall correctly, this dimwit President went public stating there was no crisis in Zim, after his tjom rigged the elections there - what a poepol this guy is. At least Mr M had the ability to drop rates at an alarming pace, well done to him. by Piet on September 24 2009, 13:52 Find this comment inappropriate? Report it

Mbeki Lunatic fringe rantings from an ex-president who has lost all credibility and whose misguided AIDS policies resulted in the deaths of thousands, if not millions - he must just go back home to his whisky and ask forgiveness. by Thabo on September 24 2009, 15:07 Find this comment inappropriate? Report it

hic* hic* there is no crises hic* eats garlic and potatoes *hic* Zim is a most excellent democracy *hic* the WEST are devils *hic* everybody is plotting againts me and my comrade Mugabe *hic* *hic* by T. Mbeki on September 24 2009, 15:11 Find this comment inappropriate? Report it

Failure A man well versed in failure on every level by T Mbeki on September 24 2009, 16:54 Find this comment inappropriate? Report it

dear Mr Mbeki You had your chance, be an African Renaissance leader, who serves his time and then retires to do charity and ponders and criticises his own mistakes, if he or she ever does criticise. With Love. by jasun on September 24 2009, 18:49 Find this comment inappropriate? Report it

This from a person who Gave us Manto, Crime is a perception, HIV does not cause AIDS, the breakdown of govenrments in ALL depts except finance, world leading Murder rates, poverty, unemployment. A person who would never listen and spoke a kind of nonsensical golbligook. . .more Worse he admired Mugabe. No one should take notice of this man and we should all be glad the ANC removed him. Now what about Julius that silly racist boy? . .less by Thanks ANC on September 25 2009, 00:18 Find this comment inappropriate? Report it

Thabo Mbeki a man of principle History will still judge whether all the baseless accusations towards the former president are true or just a figment of some people's imaginations. What I like about Mr Mbeki's messages is that they are as consistent as when he was in power. No . .more wonder he solicit so much emotions. Anyway the truth is what South Africa needs today in the face of Leonard Chuene, Judge Hlope etc.. . .less by Miya on September 25 2009, 09:09 Find this comment inappropriate? Report it

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