South Africa’s Post-apartheid ECONOMIC Development Trajectory

2021 ◽  
pp. 90-110
Author(s):  
David Francis ◽  
Adam Habib ◽  
Imraan Valodia

South Africa’s economic and social development trajectory in the post-apartheid period remains a controversial subject, notwithstanding the extensive literature that has developed. This chapter covers the full spectrum of this debate, but importantly also offers new insights and analysis of the issues. The literature is vast. At one extreme, views from the far left argue that the African National Congress (ANC) has essentially ‘sold out’ and followed uncritically a neo-liberal growth path, to defenders of the ANC’s policies from active participants in the process at the other extreme. Between these two views, there are a number of significant contributions. This chapter reviews the history and contestation of economic policy in South Africa and offers some explanations for why the country’s economic progress has been so uneven. It argues that chronic economic underperformance is the result of two persistent problems in the political-economic structure of South Africa. The first is the failure of politicians and policymakers to account for the limits of South African state capacity to implement even simple economic reforms; post-apartheid economic policymaking is characterized by an assumption that the South African state is able to carry out complex economic coordination and effect reforms. Second, the impasse is really a political one caused by ideological contestation within the ANC which has no mechanism to resolve the impasse.

2017 ◽  
Vol 9 (1) ◽  
pp. 62-75 ◽  
Author(s):  
Kgothatso B. Shai

Since March 2016, the subject of South African state capture has received much attention from the political, business and scholarly community in the country and beyond. The vibrancy of this public and scholarly discourse was reignited by the claims by some politicians from the ruling party, the African National Congress (ANC), that in the recent past, they were approached by the Gupta family (business moguls) for consideration in ministerial appointments. These revelations have since produced a dominant perception that the Gupta family wields an undue influence over the President of the Republic and by extension, the entire state machinery. This extends to the family and friends as well. While the Guptas ‘capture’ the state, ministers and premiers are not directly accountable to them by protocol, but only to the President as a constitutional prerogative to do so. The view on state capture is not uniformly accepted. One notes the discourse is dominated by Euro-American perspectives, purporting to create a misunderstanding of the current trajectory of business–state relations in South Africa. As a theoretical framework, Afrocentricity is adopted and used in this article to answer the following two central questions: (i) Is it a myth or reality that the Gupta family has captured the South African state? (ii) At which point should corporate influence in state affairs be considered as illegal? Methodologically, this is achieved through thematic content analysis on conversations and the prevailing discourses circulating within South Africa.


2021 ◽  
Author(s):  
◽  
Lucas Nkosana Sibuyi

The state has played an indispensable, major role in the industrialisation of South Africa, and its transformation from an economy of agriculture and mining to one based on manufacturing and services by the 1970s. Large state-owned corporations in communications and transportation, finance, industry and power have been key to this process, which also involved an extensive (and racist form of) import substitution industrialisation (ISI) from the 1920s. The 1970s saw a shift towards neoliberal policies, first under the National-Party-led apartheid government and then under the African-National-Congress-led democratic government formed in 1994. Since the 1980s, this restructuring has profoundly affected state-owned enterprises (SOEs), including the monopoly electricity utility ESKOM, and manufacturing industries, such as the automotive sector. This thesis examines the evolution of and interaction between different areas of neoliberal policy, and their evolution over time through a consideration of the relationship between the restructuring of SOEs and manufacturing, with a focus on ESKOM and autotomotives respectively. Relying on interviews with senior officials, policymakers, union leaders and industrialists, as well as primary documents, the study examines the responses of OEMs in South Africa (BMW, Ford, General Motors, Mercedes Benz/Daimler, Nissan, Toyota and Volkswagen) to ESKOM’s actions, and analyses the root of these actions. It argues that while restructuring has been framed by a common framework, policy development and implementation is not coordinated or cohesive. ESKOM, for example, gutted investment in electricity and maintenance generation capacity to become profitable and create space for Independent Power Providers (IPPs) – neoliberal measures for which it was rewarded and lauded. This took place at a time when national policy emphasised the need to grow manufacturing and attract direct investment by creating an investor-friendly climate resting on infrastructure. It also took place when the Department of Trade and Industry (DTI) rolled out highly successful plans – also praised and rewarded – to help adjust automotives to open markets; the sector grew much larger than under ISI, while other sectors like textiles collapsed. ESKOM’s measures, however, led to a rapid decline in the capacity and stability of the power system, and directly contradicted the drive to expand and globalise manufacturing, in which automotives was now the leading edge. Corruption in the utility worsened, much of it through subcontracting measures rooted in neoliberal reforms, but this did not cause the basic problems. It is argued that this situation of competing policy imperatives reflects deeper, long-term problems in the South African state, including contradictory policies, uneven capacity and a lack of coordination. For example, there was no coordination between the DTI and stakeholder departments that regulate ESKOM, being the shareholder ministry, the Department of Public Enterprises (DPE) and its policy ministry, and the Department of Mineral Resources and Energy (DMRE). These types of problems did not start postapartheid, and post-1994 reforms have not adequately addressed them. What exists is not a “developmental” state, as policymakers hope, but a fractured state of an intermediate type that combines “developmental” and “predatory” features in a oneparty dominant system in which lines between ruling party and state blur, and state resources are leveraged for elite class formation. Such was the case under apartheid skippered by the NP, with Afrikanerisation, and it continues today post-apartheid under the ANC with BEE. Major reforms are needed, but not just in SOE governance or budgets, as many have suggested. If we are to take the nation forward, the basic design of the state must be reformed. The state needs professionalised, coherent policy-making and implementation, proper coordination of state entities and hard decisions. It should manage high levels of public infrastructure, guarantee political stability and credit ratings, and provide policy certainty and predictability. Without big reforms it will remain a chronic underperformer.


2018 ◽  
Vol 11 (2) ◽  
pp. 467-511 ◽  
Author(s):  
T. K. Pooe

Abstract This paper examines whether the current South African legal framework and subsequent policies post-1994 encourage and have emphatically fostered industrialisation in South Africa primarily and Southern Africa more generally. The primary contention of this paper is that the South African State, unlike fellow Southern African States, has a long history with industrialisation and should have laid the foundations for Southern Africa’s large scale industrialisation trajectory. However, the post-1994 government vision for South Africa has never had a Law and Development philosophy that prioritises and fosters industrialisation. Industrial Promotion in Africa, is understood as being concerned with drafting, strategically implementing and investing in industrially minded action plans. Through the prism of Local Economic Development policy and legislation in the Sedibeng region, this paper contends that industrialisation is still a farfetched endeavour despite industrially minded policies like the New Growth Path and the Industrial Policy Action Plans in South Africa. Moreover, South Africa’s industrialisation agenda is compromised by the Law and Development philosophy of the African National Congress led government. At the core of this philosophy is an overestimation of social justice activity like Human Rights promotion at the expense of Asian Developmental States’ non-human rights approach to economic development activity, like industrialisation in rural and township regions of South Africa.


2020 ◽  
Vol 13 (1) ◽  
pp. 56-75
Author(s):  
Ainara Mancebo

A tripartite alliance formed by the African National Congress, the South African Communist Party and the Congress of South African Trade Unions has been ruling the country with wide parliamentarian majorities. The country remains more consensual and politically inclusive than any of the other African countries in the post-independence era. This article examines three performance’s aspects of the party dominance systems: legitimacy, stability and violence. As we are living in a period in which an unprecedented number of countries have completed democratic transitions, it is politically and conceptually important that we understand the specific tasks of crafting democratic consolidation.


2008 ◽  
Vol 4 (1) ◽  
pp. 69-90 ◽  
Author(s):  
Yoon Jung Park

AbstractBased on the author's PhD research, this article focuses on the fluid and contested nature of the identities — racial, ethnic, and national — of people of Chinese descent in South Africa in the apartheid and post-apartheid eras. The research focuses on the approximately 12,000-strong community of second-, third-, and fourth-generation South African-born Chinese South Africans. It reveals that Chinese South Africans played an active role in identity construction using Chinese history, myths and culture, albeit within the constraints established by apartheid. During the latter part of apartheid, movement up the socio-economic ladder and gradual social acceptance by white South Africa propelled them into nebulous, interstitial spaces; officially they remained “non-white” but increasingly they were viewed as “honorary whites.” During the late 1970s and 1980s, the South African state attempted to redefine Chinese as “white” but these attempts failed because Chinese South Africans were unwilling to sacrifice their unique ethnic identity, which helped them to survive the more dehumanizing aspects of life under apartheid.


2021 ◽  
Author(s):  
◽  
Milan Oralek

<p>This thesis explores the life and work of a South African journalist, editor, and activist Michael Alan Harmel (1915–1974), a political mentor and friend of Nelson Mandela. A resolute believer in racial equality and Marxism-Leninism, Harmel devoted his life to fighting, with “the pen” as well as “the sword”, segregation and apartheid, and promoting an alliance of communists with the African National Congress as a stepping stone to socialism in South Africa. Part 1, after tracing his Jewish-Lithuanian and Irish family roots, follows Harmel from his birth to 1940 when, having joined the Communist Party of South Africa, he got married and was elected secretary of the District Committee in Johannesburg. The focus is on factors germane to the formation of his political identity. The narrative section is accompanied by an analytical sketch. This, using tools of close literary interpretation, catalogues Harmel’s core beliefs as they inscribed themselves in his journalism, histories, a sci-fi novel, party memoranda, and private correspondence. The objective is to delineate his ideological outlook, put to the test the assessment of Harmel—undeniably a skilled publicist—as a “creative thinker” and “theorist”, and determine his actual contribution to the liberation discourse.</p>


2021 ◽  
Author(s):  
◽  
Milan Oralek

<p>This thesis explores the life and work of a South African journalist, editor, and activist Michael Alan Harmel (1915–1974), a political mentor and friend of Nelson Mandela. A resolute believer in racial equality and Marxism-Leninism, Harmel devoted his life to fighting, with “the pen” as well as “the sword”, segregation and apartheid, and promoting an alliance of communists with the African National Congress as a stepping stone to socialism in South Africa. Part 1, after tracing his Jewish-Lithuanian and Irish family roots, follows Harmel from his birth to 1940 when, having joined the Communist Party of South Africa, he got married and was elected secretary of the District Committee in Johannesburg. The focus is on factors germane to the formation of his political identity. The narrative section is accompanied by an analytical sketch. This, using tools of close literary interpretation, catalogues Harmel’s core beliefs as they inscribed themselves in his journalism, histories, a sci-fi novel, party memoranda, and private correspondence. The objective is to delineate his ideological outlook, put to the test the assessment of Harmel—undeniably a skilled publicist—as a “creative thinker” and “theorist”, and determine his actual contribution to the liberation discourse.</p>


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lindani Myeza ◽  
Naledi Nkhi ◽  
Warren Maroun

PurposeThe study aims to deepen the understanding of why risk management principles are circumvented, thereby contributing to transgressions in public procurement for South African state-owned enterprises (SOEs). A deeper understanding of why risk management principles are circumvented is especially important in South Africa, given the high social, economic and environmental risks to which national and major SOEs are exposed in the procurement process.Design/methodology/approachThe study uses a qualitative design, based on detailed semi-structured interviews with 19 participants comprising management advisors, forensic investigators and auditors to explore why risk management principles are circumvented by South Africa SOEs.FindingsThe results of the study indicate that the tone that is set at political and executive level plays an important role in determining compliance with risk management principles by lower-level staff. Intense levels of political influence at SOEs are the main reason behind risk management systems being undermined.Originality/valueThe current study is one of the first explorations of why transgressions in public procurement continue to be evident despite risk management reforms being adopted by South Africa public sector. The research responds to the call for more studies on why reforms in South Africa public sector are not reducing transgression in public procurement. The study provides primary evidence on the importance of political and executive leadership in influencing the effectiveness of risk management reforms in the public sector.


Author(s):  
Hendrik Van der Merwe

In this paper I discuss three case studies of facilitation and mediation in South Africa: 1) facilitation between the South African apartheid establishment and the African National Congress in exile from 1963 to 1989; 2) facilitation that eventually led to mediation between Inkatha and the United Democratic Front in Natal over 10 months from 1985 to 1986; and 3)mediation between the African National Congress and the Afrikaner Freedom Foundation (Afrikaner Vryheidstigting, also known as Avstig) over 18 months from 1991 to 1993.


2017 ◽  
Vol 33 (4) ◽  
pp. 428-447 ◽  
Author(s):  
Olusola Ogunnubi ◽  
Adeoye Akinola

This article examines the viability of mainstream neo-realist international relations scholarship for understanding regional power dynamics within Africa by offering a critical evaluation of the categorization of South Africa as a hegemonic power on the continent. Using the theoretical framework of hegemonic stability theory, it argues that there is a somewhat weak link between South Africa’s foreign policy character and its hegemonic disposition in Africa. The South African state, which is the driving force for political, economic and foreign policy processes, is itself subordinate in relation to international capital and lacks the influence expected of a regional hegemon. Despite South Africa’s development, the article demonstrates that its dependency provides the theoretical construct for understanding the country’s ambiguous hegemonic projection. This analytical framework captures the crux of the “hegemonic debate” as well as other conversations in relation to the adaptation of the concept of hegemony to Africa. Therefore, any application of the hegemonic discourse to South Africa necessarily requires a deeper understanding that takes cognizance of the fact that country’s regional hegemony operates within the orbit of a dependent-development paradigm in the global economic order, a neo-liberal order that continues to deepen Africa’s dependency syndrome. Dependency, as well as other complexities, impedes the reality of South Africa’s hegemonic ambitions in Africa.


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