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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Study shows why it is so scary to lose money 08 Feb 2010 Age of mother affects child's autism risk: study 08 Feb 2010 Moscow says U.S. missile shield aimed at Russia 7:59am EST Study links sugary soft drinks to pancreas cancer 08 Feb 2010 Toyota recalls new Prius in latest safety fix | Video 10:41am EST Study links sugary soft drinks to pancreas cancer 08 Feb 2010 Age of mother affects child's autism risk: study 08 Feb 2010 Study shows why it is so scary to lose money 08 Feb 2010 Study toasts beer as being good for your bones 9:06am EST China vows to keep "hot money" out of property market 10 Jan 2010 Two decades after Mandela's release, South Africa struggles Marius Bosch JOHANNESBURG Tue Feb 9, 2010 4:48am EST Factbox Factbox: Twenty years of freedom for Nelson Mandela 4:48am EST Girls walk past portraits of former South African President Nelson Mandela, painted by O.J. Zwane, in Soweto January 27, 2010. Credit: Reuters/Siphiwe Sibeko JOHANNESBURG (Reuters) - Twenty years after Nelson Mandela was freed from prison, South Africa is a vibrant democracy but the millions still living in poverty are now looking for leadership that can tackle its economic problems. World Mandela's release on February 11, 1990, after 27 years in apartheid-era jails, set in motion the country's transformation to democracy which culminated in historic all-race elections in 1994 and his inauguration as the country's first black leader. Some critics say Mandela's legacy has been blighted by his successor Thabo Mbeki's sacking as president by the ruling ANC and the latest sexual scandal involving current President Jacob Zuma which has damaged the party's image. South Africa's change to democracy has been heralded as a miracle. Mandela's reconciliation drive won over hardline white conservatives, previously segregated communities are integrated and most blacks and whites now treat each other with respect. But two decades on, many black South Africans still live in grinding poverty in squalid shantytowns, official unemployment is just under 25 percent and analysts say actual joblessness is much higher. "The challenges are identical. If there are three categories of things, it will be unemployment, inequality with a racial overlay and poverty. The changes between 1990 and 2010 are not profound," said independent political analyst Nic Borain. Crime is rife and South Africa has one of the world's highest rates of violent crime. The country also has to deal with one of the heaviest global HIV/AIDS caseloads. RICH POOR GAP Income inequality between different race groups has increased from 1995 and the World Bank describes South Africa as a country with "extreme differences in incomes and wealth." At least 34 percent of South Africa's estimated 50 million people live on less than two dollars per day, according to the World Bank. The economy under the African National Congress, which has been ruling since the end of apartheid in 1994, saw its longest spurt of growth on record until the fallout from the global financial crisis pushed it into recession at the start of 2009. Although Africa's biggest economy emerged from recession in the third quarter of 2009, analysts said its growth prospects lagged other emerging market peers -- a situation which can only be changed through significant restructuring to address infrastructure and labor market constraints. Two decades after Mandela's release, South Africa needed to put in place real change to address economic structural problems and the low potential growth rate, said Peter Attard Montalto, emerging markets economist at Nomura International. "There is currently no one to lead South Africa to this consensus. We need to hunt for the next Mandela, not the nation builder, the economic revolutionary," Attard Montalto added. Despite the obvious problems facing South Africa, much has changed since Mandela was released. A strong black middle-class has emerged, a whole generation of schoolchildren born after 1994 -- known as the "born frees" -- have grown up in an multi-racial society and basic services like water and electricity have been extended to millions. "The only black people you interacted with (prior to 1990) as a normal kind of person were servants and deeply poverty-stricken people. That is no longer the case and there is a general deracialism of wealth at least," political analyst Borain said. (Editing by Giles Elgood) World More from Reuters Obama hopes to see jobs package in coming weeks WASHINGTON (Reuters) - President Barack Obama said on Tuesday he hoped Congress would soon deliver a package of measures to boost U.S. employment and growth. 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Full Article Factbox: GOP reform proposals Obama: No time to "lick our wounds" Healthcare Reform © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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