Has it Reinvented Iron Law? South Africa’s Social Industrialisation, not Iron Industrialisation

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.

2019 ◽  
Vol 12 (2) ◽  
pp. 377-401 ◽  
Author(s):  
T. K. Pooe

Abstract The ascension of the African National Congress into formal politics through its electoral victory in 1994 resulted in South Africa adopting one of the world’s most heralded social justice and human rights-based documents, the 1996 Constitution. Yet, two-decades of ANC governance this paper argues has not led to the types of economic development needed to advance the formerly oppressed African majority, Colored and Indian populations. This lackluster economic development is even more troubling when one considers the giant economic development steps Asian developmental states have made, without a human rights and social justice approach. It is the contention of this paper that the newly presented General Theory of Law and Development allows for a new type of analysis exploring the reasons why South Africa’s economic development trajectory has been so lackluster, when so many authorities praise the South African legal framework. In making this argument using the General Theory South Africa’s local governments sphere and local economic development will be the subject of analysis.


2017 ◽  
Vol 10 (2) ◽  
Author(s):  
T. K. Pooe

AbstractThis paper explores how South Africa despite having one of the most lauded constitutions and legal frameworks in the world has been unable to advance as a developmental state in economic development and institutional building endeavours. The contention of this paper is that the South African government, prioritising law and development, did so at the expense of institutional building for economic development purposes. Law and development is conceptualised in this paper as States prioritising liberal actions such as separation of powers (judiciary, executive and legislature) and human rights. Consequently, this paper is not arguing against some of the tenants characterising the law and development agenda. Rather it asks, did South Africa lose its credentials as a possible developmental state by prioritising law and development initiatives over building developmental state institutions for local economic development purposes in particular? Ultimately, this paper contends that for South Africa to become a functional developmental state it needs to reconsider its constitutional/law and development aspirations, in favour of reconfiguring government institutions to prioritise economic development.


2020 ◽  
Vol 39 (2) ◽  
Author(s):  
Pablo De Rezende Saturnino Braga

The foreign policy narrative of South Africa is strongly grounded in human rights issues, beginning with the transition from a racial segregation regime to a democracy. The worldwide notoriety of the apartheid South Africa case was one factor that overestimated the expectations of the role the country would play in the world after apartheid. Global circumstances also fostered this perception, due to the optimistic scenario of the post-Cold War world order. The release of Nelson Mandela and the collapse of apartheid became the perfect illustration of the victory of liberal ideas, democracy, and human rights. More than 20 years after the victory of Mandela and the first South African democratic elections, the criticism to the country's foreign policy on human rights is eminently informed by those origin myths, and it generates a variety of analytical distortions. The weight of expectations, coupled with the historical background that led the African National Congress (ANC) to power in South Africa, underestimated the traditional tensions of the relationship between sovereignty and human rights. Post-apartheid South Africa presented an iconic image of a new bastion for the defence of human rights in the post-Cold War world. The legacy of the miraculous transition in South Africa, though, seems to have a deeper influence on the role of the country as a mediator in African crises rather than in a liberal-oriented human rights approach. This is more evident in cases where the African agenda clashes with liberal conceptions of human rights, especially due to the politicisation of the international human rights regime. 


2018 ◽  
Vol 114 (5/6) ◽  
Author(s):  
Daan Toerien

Statistically significant Pareto-like log-log rank-size distributions were recorded for population and enterprise agglomeration in the towns of three different regions of South Africa, and are indicative of skewed distributions of population and enterprise numbers in regional towns. There were no distinct differences between groups of towns of regions from different parts of the country. However, the regional agglomerations differed from those of groups of towns randomly selected from a database. Regions, therefore, appear to have some uniqueness regarding such agglomerations. The identification of Zipf-like links between population and enterprise growth in regional towns still does not fully explain why some towns grow large and others stay small and there is a need to further explore these issues. The extreme skewness in population and enterprise numbers of different towns’ distributions should, however, be considered in local economic development planning and execution.


2014 ◽  
Vol 8 (4) ◽  
pp. 448-464 ◽  
Author(s):  
T Phele ◽  
S Roberts ◽  
I Steuart

This  article explores the challenges for the development of manufacturing through a case study of the foundry industry in Ekurhuleni Metropolitan Municipality. Ekurhuleni Metro covers the largest concentration in South Africa, but the industry’s performance has been poor over the past decade.  The findings reported here highlight the need to understand firm decisions around investment, technology and skills, and the role of local economic linkages in this regard.  The differing performance of foundries strongly supports the need to develop concrete action plans and effective institutions at local level to support the development of local agglomerations.


2017 ◽  
Vol 28 (1) ◽  
pp. 35 ◽  
Author(s):  
Holle L. Wlokas ◽  
Peter Westoby ◽  
Sue Soal

Implementation of large-scale wind, solar and hydro projects in South African communities is intended to contribute to local economic development. Government policy, through the Renewable Energy Independent Power Producer Procurement Prog-ramme (REIPPPP), obliges energy companies to share revenue and ownership with local communities, thus providing renewable energy companies with a significant opportunity to position the industry as a significant contributor to community development and thus to the country’s transformation and development agenda. This investigation draws on policy documents and interview data to establish that the policy’s lack of appreciation for existing community development tradition and frameworks, commonly applied in South African development policy and programmes, has weakened its potential. Furthermore, it theoretically positions the emerging practice employed by the renewables industry in the implementation of the REIPPPP requirements, and outlines how existing academic and practical knowledge about community development and company-community relations can provide guidance and support in building an impactful practice.Keywords: community relations and development, REIPPPP, community benefit, project implementation, social performanceHighlights•    South Africa is implementing a unique version of pro-poor renewable energy policy. •    Industry and local communities and government need to build quality relationships to successfully implement the policy requirements.•    The policy and practice ignores established community development traditions and frameworks.•    Existing knowledge grounded in South African practice and policy experience can guide the sector’s understanding of and vision for development.


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 ◽  
Vol 12 (01) ◽  
Author(s):  
CM Mashabela ◽  

The government of South Africa adopted Local Economic Development (LED) as part of its development policy in its quest for an inclusive economic development and growth. LED is intended to create a conducive environment for an inclusive local economy. However, unemployment and poverty rates are high in local communities with some SMMEs struggling to secure funding. Although municipalities do not create jobs directly through LED, they should, however, ensure that strategies implemented talk to inclusive economic growth, particularly the mitigation of unemployment and poverty rates. The purpose of the paper is to investigate the efficacy of LED in South African municipalities. The paper aims to evaluate and analyse the impact of implementing LED in South Africa. The quantitative research approach was adopted, and questionnaires were utilised to collect primary data. The paper found that LED in South Africa produces desired results at a low rate in that only a small fraction of the participants agrees that the municipality facilitates funding for SMMEs; only a small fraction of the participants is of the view that LED units provide adequate infrastructure and create industries. Moreover, the paper found that only a fraction of the participants is able to create job opportunities. Consequently, the paper recommends that municipalities should facilitate SMMEs funding, provide adequate infrastructure, develop industries and design LED strategies that enhance job creation. The paper argues that effective measures of implementing LED will enhance LED impact rate and fast track the prospects of inclusive economic growth in South African municipalities.


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.


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