Proceedings of The 8th International Conference on Social Sciences Humanities and Education
Year: 2023
DOI:
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Smart Money Capabilities to Facilitate a Currency Union and Foreign Aid Control in South Africa
Mohini Pather
ABSTRACT:
Smart money is a technology which leverages the programmable aspects of digital currencies. Developed countries use trade programs and foreign aid to promote economic growth and influence humanitarian policy in developing countries. A currency union has been planned by the African Union for decades but stalled by a lack of cooperation and policy differences. South Africa is the beneficiary of billions in foreign aid as it is a middle-income emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, and transport sectors; and Africa’s largest stock exchange. Given South Africa’s level of development, it is the ideal country to facilitate this progression towards an African Currency Union. Unfortunately, South Africa averaged 46.2 out of 100 on the corruption index from 1996 to 2022. The Judicial Commission of Inquiry into Allegations of State Capture in South Africa found corruption and fraud in the Public Sector including Organs of State. Without a credible African Central Bank, the currency union is improbable. Smart Money offers the ability to specify programmed criteria for Foreign aid funding. This study attempts to understand the implications of smart money to limit the powers of local government in the allocation of foreign aid resources, to the benefit of the continent. However, this could be a form of government over-reach as the local government comprises elected officials responsible for the allocation of the country’s resources. Could smart money technology be used to liberate the country from theft of public funds or corrupted to be used as a tool of oppression? This study uses a triangulated literature review to examine the capabilities of the smart money technology, the limitations of the current legislative framework, possible implications for ethical foreign policy and central bank supported digital currency unions. Ethical foreign policy concept while contested by academics can generally be understood as a commitment to alleviate human suffering and to promote cooperation the international system. Diplomacy may suffer if countries view foreign assistance as being weaponized to manipulate or coheres the local government. Concerns regarding government over-reach, tracking, remotely cutting access to bank accounts, limitations to freedom and privacy. Alternatively, it could be viewed as a measure to limit poor allocations of foreign aid, limitations to corruption, fraud and theft. The possible implications on freedom and protection of national sovereignty must be primary concerns in implementing new technologies. Technological capabilities are not exclusive and could be the answer to liberation of the people or a tool of oppression by a future government or legislative body.
keywords: Smart money, oppression, liberation, foreign policy, corruption