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Elsewhere today this newspaper reports that over half of municipalities are technically bankrupt, 45% have passed unfunded budgets, and fewer than 20% achieved clean audits. Only 15% of municipalities met clean audit standards, while 51% are insolvent and 72% face severe cash flow pressures, pointing to a system where basic fiscal discipline has broken down.

The Auditor-General has asked for more diligence from the politicians. Good luck with that when even the chairman of the board, as it were, keeps millions of dollars in cash hidden in one of his homes. Really, if at this stage anyone still believes a word of President Cyril Ramaphosa’s commitment to clean government and fighting corruption they’re beyond help.

A lack of diligence in auditing is also not the primary problem. The primary problem is instead that a central policy of the state is to employ people on grounds other than merit. Until that changes, requiring both a change of government and a 180-degree shift in ideology, the local government audit mess will remain.

So, the board chair is a crook and the policy of the government necessarily means the crookery continues. What now?

The answer is staring the whole country in the face.

As the central state weakens, and fails in its basic functions, private, regional, and non-state actors are beginning to take these over. And this is happening at a scale unprecedented in any democracy ever.

This newspaper estimates that around 15% of South Africans are middle class in the sense of having medical aid, home loans, and the like. They’re creating private enclaves with their own water, electricity, security, medical care, and education. As the state wrecks those things, private actors find ways to provide them privately.

But it is not just the middle classes that are doing this.

Regulatory strangulation by the state of the investment environment via empowerment policy and labour law has seen the rise of a massive illicit economy that exists outside of the control of the state, as The Common Sense has reported at length.

The Western Cape, and the Cape Town metro within it, represents a facet of this break-up of the central authority of the state, where the better regional governance of the Democratic Alliance draws much investment and capital into the southern reaches of the country, creating trends in areas such as property prices that are quite at odds with those in the north.

On the east coast, the same thing is happening in the nexus between the uMkhonto weSizwe Party and traditional leadership authorities that have usurped the power to govern KwaZulu-Natal – power that once resided in the Union Buildings.

On the fringes of the cities, gangs and taxi bosses call the shots now more even than the police and the government do.

It is a total fragmentation of the union that is underway into a de facto federation of privately and regionally administered enclaves.

It is also, in as far as the middle classes are concerned, a good thing because it means that South Africa will retain a lot of its capital, skills, entrepreneurship, tax, and employment base even if the government continues to fail. These will continue to cross-subsidise the country, many people will still have work, and there will still be welfare. The precipitous collapse of so many other post-colonial societies as their governments failed will therefore not likely be the case for South Africa.

What about revolution? Well, the middle classes lead those, and they’ll be happy in their enclaves so the risk is modest. And the politicians? They’ll be the first into the enclaves to get away from the consequences of how they govern the country.

Won’t things get so bad that even the enclaves fail? No, likely not, as they draw their strength and resilience from the weakness of the state, meaning the weaker it becomes, the stronger the enclaves become.

This break-up of the union is the most influential and important trend to understand about South Africa’s next decade. Position correctly around it and you will do very well. But understanding it requires a mind-shift away from the old default thinking that your life in South Africa will be determined by what the chairman of the board sitting in the Union Buildings does. That is no longer true.