Hostname: page-component-848d4c4894-ndmmz Total loading time: 0 Render date: 2024-05-19T18:11:33.586Z Has data issue: false hasContentIssue false

Economic Growth and Political Change: the South African Case

Published online by Cambridge University Press:  11 November 2008

Extract

People of quite diverse social position and perspective have turned to economic growth as a source of political change in South Africa. Contained within the concept of growth, they maintain, are processes — capital accumulation and class formation, business enterprise and markets, changing skill and capital requirements – that, at the very least, allow some blacks a more secure and higher living standard, that may bring greater equality between the races, or more profoundly, confound traditional racial lines and privileges of quite diverse social position and perspective have turned to economic growth as a source of political change in South Africa. Contained within the concept of growth, they maintain, are processes — capital accumulation and class formation, business enterprise and markets, changing skill and capital requirements – that, at the very least, allow some blacks a more secure and higher living standard, that may bring greater equality between the races, or more profoundly, confound traditional racial lines and privileges. Indeed, some argue that growth undermines the foundations of the racial state. Many of those who posit a relationship between economics and politics, take the next logical step: supporting actions, including foreign investment, that foster economic growth and, presumably, political change in South Africa.

Type
Articles
Copyright
Copyright © Cambridge University Press 1981

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

page 667 note 1 Quoted in Stanley Greenberg, B., Race and State in Capitalist Development: comparative perspectives (New Haven, 1980), p. 149.Google Scholar

page 667 note 2 South African Mining and Engineering Journal (Johannesburg), 09 1960Google Scholar; my emphasis.

page 668 note 1 Oppenheimer, Harry‘Why the World Should Continue to Invest in South Africa’ International Monetary Conference, Mexico City, 22 05 1978.Google Scholar

page 668 note 2 Chettle, John, ‘Economic Growth and Political Change in South Africa’, Study Commission on U.S. Policy Toward Southern African, New York, 19 10 1979, p. 6.Google Scholar

page 669 note 1 Horwitz, Ralph, The Political Economy of South Africa (London, 1967), p. 405.Google Scholar

page 669 note 2 Houghton, D. Hobart, ‘Economic Development, 1865–1965’, in Wilson, Monica and Thompson, Leonard (eds.), The Oxford History of South Africa, Vol. 11, South Africa, 1870–1966 (Oxford, 1971), p. 48.Google Scholar Houghton also states that the use of all available manpower is necessary in order to realise that vision of the future.

page 669 note 3 O'Dowd, Michael C., ‘The Role of a Free Enterprise Economy in Combating Social/Political/Economic Inequality in South Africa’, Workshop on Socio-Economic and Constitutional Alternatives for South Africa, Rhodes University, Grahamstown, 24–8 08 1978, p. 4.Google Scholar

page 669 note 4 O'Dowd, Michael C., ‘The Stages of Economic Growth and the Future of South Africa’, in Schlemmer, Lawrence and Webster, Eddie (eds.), Change, Reform and Economic Growth in South Africa (Johannesburg, 1978), p. 37.Google Scholar In a post-script – ibid. p. 45 – O'Dowd states that he no longer anticipates the ‘disappearance of language, religious and other groups’, though he affirms that there is nothing in the groups themselves, ‘still less in colour which is an inherent source of conflict between people’.

page 669 note 5 See Norman Bromberger, ‘Economic Growth and Political Changes in South Africa: a reassessment’, in Schlemmer and Webster (eds.), op. cit. pp. 58–9, and ‘Economic Growth and Political Change in South Africa’, in Leftwich, Adrian (ed), South Africa: economic growth and political change (London, 1974), pp. 104–11Google Scholar also Adrian Leftwich, ‘The Constitution and Continuity of South African Inequality: some conceptual questions’, in ibid. pp. 173–6.

page 670 note 1 Leftwich, ‘The Constitution and Continuity’, p. 175.

page 670 note 2 Bromberger, ‘Economic Growth’, in Schlemmer and Webster (eds), op. cit. p. 58, and ‘Economic Growth’, in Leftwich (ed.), op. cit. p. 107.

page 670 note 3 Leftwich, ‘The Constitution and Continuity’, pp. 173–4.

page 670 note 4 Bromberger, ‘Economic Growth’, in Leftwich (ed.), op. cit. p. III. See Lewrence Schlemmer, ‘Economy and Society in South Africa’, in Schlemmer and Webster (eds.), op. cit. pp. 130–2. Leftwith also cautions that while these processes open the way to political reforms and economic advances, they are not likely in this in this century to insure ‘universal access to the heavily guarded central levers of political power, or admission to equal social status in a common public domain’ ‘The Constitution and Continuity’, p. 176.

page 670 note 5 External opponents of the notion would include the African National Congress and the Pan-African Congress; internal leaders include Bishop Desmond Tutu and the leaders of the Coloured Labour Party.

page 671 note 1 Quoted in ‘Corporate Activity in South Africa: Phelps Dodge Corporation’, Analysis E, Supplement No. 11, Investor Responsibility Research Center, Inc., 13 April 1977, p. E–147.

page 671 note 2 Quoted in Myers, Terry, U.S. Business in South Africa: economic, political and moral issues (Bloomington, 1980), p. 51.Google Scholar

page 671 note 3 ‘Corporate Activity in South Africa: Ford Motor Company’, Analysis E, Supplement No. 12, Investor Responsibility Research Center, Inc., 21 April 1977, p. E-156; also reports on Phelps Dodge Corporation, the Goodyear Tire and Rubber Company (Supplement No. 2), and the Union Carbide Corporation (Supplement No. 8).

page 671 note 4 ‘Corporate Activity in South Africa: the Goodyear Tire and Rubber Company’, Analysis E, Supplement No., Investor Responsibility Research Center, Inc., 10 03 1977, p. E41.Google Scholar

page 671 note 5 ‘Corporate Activity in South Africa: Manufacturers Hanover Corporation’, Analysis E, Supplement No. 7, Investor Responsibility Research Center, Inc., 29 03 1977, p. E98.Google Scholar

page 671 note 6 ‘Corporate Activity in South Africa: Union Carbide Corporation’, Analysis E, Supplement No. 8, Investor Responsibility Research Center, Inc., 1 04 1977, p. E110.Google Scholar

page 672 note 1 ‘Corporate Activity in South Africa: Citicorp’, ibid. Supplement No. 4, 24 March 1977, p. E-65.

page 672 note 2 ‘Corporate Activity in South Africa: First Chicago Corporation’, ibid. Supplement No. 5 24 March 1977, p. E-77.

page 672 note 3 ‘Corporate Activity in South Africa: Continental Illinois Corporation’, ibid. Supplement No. 6, 24 march 1977, p. E-88.

page 672 note 4 ‘Corporate Activity in South Africa: Kennecott Copper Corporation’, ibid. Supplement No.10, 12 April 1977, p. E-131.

page 673 note 1 Jill Nattrass, ‘Economic Development and Political Change – a Suggested Theoretical Framework’, in Schiemmer and Webster (eds.), op. cit. pp. 79 and 81–2; and Arrighi, Giovanni, ‘Labor Supplies in Historical Perspective: a study of the proletarianization of the African peasantry in Rhodesia’, in Arrighi, and Saul, John S., Essays on the Political Economy of Africa (New York, 1973), pp. 180–3.Google Scholar

page 674 note 1 Bundy, Colin, ‘The Emergence and Decline of a South African Peasantry’, in African Affairs (London), 71, 285, 10 1972, pp. 369–88Google Scholar; and Greenberg, op. cit. pp. 73–8.

page 674 note 2 Wolpe, Harold, ‘Capitalism and Cheap Labour-Power in South Africa: from segregation to apartheid’, in Economy and Society (London), 1, 4, 11 1972, pp. 433–9.Google Scholar

page 675 note 1 See Claude Meillassoux, ‘From Reproduction to Production: a Marxist approach to economic anthropology’, in ibid. 1, February 1972, pp. 93–105.

page 675 note 2 Wolpe, ‘Capitalism and Cheap Labour-Power in South Africa’, p. 450.

page 675 note 3 Curtis, Fred, ‘Multiple Class Processes, Migrant Labor and the Value of Labor-Power in a Social Formation: preliminary draft’, University of Massachusetts, Cambridge, 16 05 1979, pp. 1526.Google Scholar

page 676 note 1 Nattrass, loc. cit. pp. 85–6; also various issues of the Individualist (London), a publication informally associated with the Free Market Foundation.

page 676 note 2 See Bonacich, Edna, ‘A Theory of Ethnic Antagonisms: the split labor market’, in American Sociological Review (Washington, D. C.), 37, 10 1972Google Scholar; G. Mare, ‘Marginalisation Theory and Contemporary South Africa’, in Africa Perspective (n.p.), Dissertation Number One; Obregon, Anibal Quijano, ‘The Marginal Pole of the Economy and the Marginalised Labour Force’, in Economy and Society, 3, 11 1974, pp. 393428CrossRefGoogle Scholar; and Alex Erwin, ‘Unemployment and “Marginalisation”: a framework for the South African case’, Workshop on Unemployment and Labour Reallocation, Development Studies Research Group, University of Natal, Pietermaritzburg, 18–19 March 1977.

page 676 note 3 Erwin, op. cit. p. 6.

page 676 note 4 Bell, Trevor, ‘Surplus Labour and South African Development’, Workshop on Unemployment and Labour Reallocation, Development Studies Research Group, University of Natal, Pietermaritzburg, 18–19 03 1977, pp. 1012.Google Scholar

page 677 note 1 Obregon, loc. cit. p. 421.

page 677 note 2 Ibid. p. 418. David Apter has argued that similar processes create a ‘marginally superfluous population at the core’, Choice and the Politics of Allocation (New Haven, 1971), p. 78–9.Google Scholar

page 677 note 3 Obregon, loc. cit. p. 400.

page 678 note 1 Martin Legassick, ‘Postscript to “Legislation, Ideology and Economy in Post-1948 South Africa”,’ in Schlemmer and Webster (eds.), op. cit. pp. 74–5; also see Curtis, op. cit. who argues that the decline in the supplementary income may lead to a redefinition of ‘socially necessary income’, and a reduction in living standards. Cf. Bell, op. cit. for a neo-classical critique of this wage relationshi.

page 679 note 1 Wilson, Francis, Labour in the South African Gold Mines, 1911–1969 (Cambridge, 1972), p. 46.Google Scholar

page 679 note 2 See Morris, M. L., ‘The Development of Capitalism in South African Agriculture: class struggle in the countryside’, in Economy and Society, 5, 08, 1976, pp. 302–07.CrossRefGoogle Scholar

page 679 note 3 Lipton, Merle, ‘British Investment in South Africa: is constructive engagement possible?’, in South African Labour Bulletin (Durban), 3, 10 1976, p. 16.Google Scholar

page 679 note 4 Nattrass, Jill, ‘Migrant Labour and South African Economic Development’, in The South African Journal of Economics (Johannesburg), 44, 1976, p. 69.Google Scholar

page 679 note 5 McGrath, M. D., ‘Racial Income Distribution in South Africa’, Black/White Income Gap Project, Interim Report No. 2, University of Natal, Durban, 1977, p. 25.Google Scholar

page 679 note 6 Lipton, Merle, White Farming: a case history of change in South Africa (Johannesburg, 1975), p. 8.Google Scholar

page 679 note 7 Lipton, loc. cit. p. 16.

page 679 note 8 McGrath, , ‘Racial Income Distribution’, p. 25Google Scholar; Republic of South Africa, Ninth Economic Development Programme for the Republic of South Africa, 1978–1987 (Pretoria, 1979), Vol. 1, p. 17.Google Scholar

page 680 note 1 Gordon, Loraine (ed), Survey of Race Relations in South Africa, 1979 (Johannesburg, 1980, p. 194Google Scholar; and McGrath, ‘Racial Income Distribution’, p. 25.

page 680 note 2 Gordon (ed), op. cit. p. 194.

page 680 note 3 Gordon, Loraine, Blignaut, Suzanne, Moroney, Sean, and Cooper, Carole (compilers), A Survey of Race Relations in South Africa, 1977 (Johannesburg, 1978), pp. 202–3 and 206.Google Scholar

page 681 note 1 Table presented by McGrath, ‘Income and Material Ineauality’, in Schlemmer and Webster (eds.), op. cit. p. 152.

page 682 note 1 Source: Sean Archer, ‘Inter-Racial Income Distribution in South Africa’, unpublished manuscript, 1971.

page 682 note 2 McGrath, ‘Racial Income Distribution’, p. 25. There was also little change in the distribution of income-yielding assets or wealth. For Africans, ‘other income’ as a percentage of work income was only 15 in 1946–7, 11 in 1956–7, and 19 in 1960. In the same period for whites, ‘other income’ as a percentage of work income rose from 104 to 119 – M. D. McGrath, ‘Income and Material Inequality in South Africa’, in Schlemmer and Webster (eds.), op. cit.p. 156.

page 682 note 3 Archer, Sean, ‘Redistribution Issues and Policies in the South African Economy’, Workshop on Socio-Economic and Constitutional Alternatives for South Africa, Rhodes University, Grahamstown, 24–8 08 1978, Tables 3, and 7.Google Scholar

page 682 note 4 Gordon (ed), op. cit. pp. 221–240.

page 682 note 5 Nattrass, Jill, ‘The Narrowing of Wage Differentials in South Africa’, in The South African Journal of Economics, 45, 1977, p. 408.CrossRefGoogle Scholar

page 683 note 1 FM/Market Research Africa, cited in Legassick, Martin and Innes, Duncan, ‘Capital Restructuring and Apartheid: a critique of constructive engagement’, in African Affairs, 76, 305, 10 1977, p. 444.CrossRefGoogle Scholar Using personal disposable income, Nel, P. A., ‘The Non-White Worker in South Africa’, in Finance and Trade Review (Johannesburg), 12 1975,Google Scholar estimates the increase from 23 per cent in 1969–1970 to 25 per cent in 1974–1975.

page 683 note 2 See C. E. W. Simkins, ‘The Distribution of Personal Income Recipients in South Africa, 1970 and 1976’, D.S.R.G. Working Paper No. 9, Pietermaritzburg, September 1979, pp. 8–9; and Taylor, Charles Lewis and Hudson, Michael C., World Handbook of Political and Social Indicators (New Haven, 1972 edn.), pp. 263–5.Google Scholar

page 683 note 3 Archer, ‘Redistribution Issues and Policies’, Tables 8 and 9. Archer also calculates income per capita ratios, assuming a 10 per cent decline in white earnings over the period: a growth rate of one per cent produces a ratio of 24:1; 3 per cent, 6:1; and per cent, 2:1.

page 684 note 1 Source: Archer. ‘Redistribution Issues and Policies’, Table 8.

page 685 note 1 For a recent exception to the consensus, see Gerson, J. and Kantor, B., ‘An Analysis of Black Unemployment in South Africa’, School of Economics, University of Cape Town, 11 1979.Google Scholar

page 685 note 2 Merwe, P.J. van der, ‘Black Employment Problems in South Africa’, unpublished paper, pb. 20.Google Scholar

page 685 note 3 Simkins, Charles, ‘Measuring and Predicting Unemployment in South Africa, 1960–1977’, in Simkins, and Clarke, Duncan. Structural Unemployment in South Africa (Pietermaritzburg, 1978), p. 5.Google Scholar

page 685 note 4 Republic of South Africa, Economic Development Programme, p. 107.

page 685 note 5 See the discussions by Bromberger, Norman, ‘Unemployment in South Africa: a survey of research’, in Social Dynamics (Cape Town), 4,06 1978, pp. 1820,Google Scholar and by Bell, ‘Surplus Labour and South African Development’, pp. 8–10 and 12–13.

page 685 note 6 Loots, Lieb J., ‘A Profile of Black Unemployment’, South African Labour and Development Research Unit, University of Cape Town, 04 1978, p. 12.Google Scholar

page 686 note 1 Loots, Lieb J., ‘Alternative Approaches to the Estimation of Unemployment’, Workshop on Unemployment and Labour Reallocation, Development Studies Research Group, University of Natal, Pietermaritzburg, 18–19 03 1977, p. 26.Google Scholar

page 686 note 2 Source: Simkins, ‘Measuring and Predicting Unemployment’, in Simkins and Clarke, op. cit. pp. 34–5.

page 686 note 3 J. L. Sadie calculates a lower unemployment rate, somewhere between 4 and 8 per cent of the labour force, though he estimates underemployment at between 21 and 25 per cent; ‘R.S.A.-Homelands Labour Relations’, Workshop on Unemployment and Labour Reallocation, Development Studies Research Group, University of Natal, Pietermaritzburg, 18–19 March 1977, pp. 12–15. Moreover, his estimates rely exclusively on census data (by contrast, van der Merwe's depend upon increases in unemployment, though using the census as a base) that systematically underestimate unemployment in the Homelands. Enumerators for the 1970 census, Loots notes, were instructed to classify rural males and females over 16 as ‘employed’, as long as they were at some previous time employed in a particular industry or occupation; and all rural unemployed males over 16, except the first group, were classified as ‘employed in agriculture’, as well as all rural unemployed females over 16, except a wife of a head of household, who was classified as ‘housewife’. ‘A Profile of Black Unemployment in South Africa: two area studies’, SALDRU Working Paper No 19, University of Cape Town, 04 1978, p. 10.Google Scholar

page 687 note 1 Simkins, ‘Measuring and Predicting Unemployment’, p. 33.

page 687 note 2 Lipton, Merle, ‘The Debate About South Africa: neo-Marxists and neo-Liberals’, in African Affairs, 78, 310, 01 1979, pp. 66–7.CrossRefGoogle Scholar

page 687 note 3 Republic of South Africa, Economic Development Programme, p. 106.

page 687 note 4 Ibid. p. 27.

page 687 note 5 These figures depend upon the conservative Economic Development Programme base of 10·6 per cent unemployment in 1977.

page 687 note 6 Ibid. p. 123.

page 688 note 1 Simkins, ‘Measuring and Predicting Unemployment’, p. 41.

page 688 note 2 Ibid. pp. 13 and 41.

page 688 note 3 Republic of South Africa, Economic Development Programme, p. 26.

page 688 note 4 Simkins, ‘Measuring and Predicting Unemployment’, p. 15.

page 688 note 5 Knight, John, ‘Labour Supply in the South African Economy’, SALDRU Working Paper No. 7, University of Cape Town, 07 1977, p. 34.Google Scholar

page 688 note 6 Simkins, ‘Measuring and Predicting Unemployment’, p. 41.

page 688 note 7 Republic of South Africa, Economic Development Programme, pp. 47–8.

page 689 note 1 Source: this Table was adapted from the Office of the Economic Advisor to the Prime Minister, Ninth Economic Development Programme for the Republic of South Africa, 1978–1987 (Pretoria, 1979), Vol. 1, Annexure 2.Google Scholar

page 689 note 2 Ibid. p. 17.

page 689 note 3 Presented in Bromberger, ‘Unemployment in South Africa’, p. 23.

page 689 note 4 Republic of South Africa, Economic Development Programme, p. 79.

page 690 note 1 Source: adapted from ibid. Tables 5.1–5.4.

page 690 note 2 Ibid. p. 14.

page 690 note 3 Legassick, Martin, ‘Legislation, Ideology and Economy in Post-1958 South Africa’, in Journal of Southern African Studies (London), I, 10 1974Google Scholar; also see Bromberger, ‘Unemployment in South Africa’, pp. 23–4.

page 690 note 4 See Bell, , ‘Surplus Labour and South African Development’, pp. 1516.Google Scholar

page 691 note 1 Republic of South Africa, Economic Development Programme, p. 92.

page 691 note 2 Harry Schwarz and Alex Boraine, discussed in Gordon (ed), op. cit. p. 198.

page 691 note 3 Van der Merwe, ‘Black Employment Problems in South Africa’, pp. 28–9.

page 691 note 4 Republic of South Africa, Commission of Inquiry into Legislation Affecting the Utilisation of Manpower (Pretoria, 1979), p. 260.Google Scholar

page 693 note 1 Simkins, ‘Measuring and Predicting Unemployment’, pp. 29–30; and Nattrass, ‘Migrant Labour and South African Development’, p. 69.

page 693 note 2 Lipton, ‘British Investment in South Africa’, pp. 22–3.

page 693 note 3 Bernard Makhosezwe Magubane, The Political Economy of Race and Class in South Africa (New York and London, 1979), p. 156.Google Scholar

page 693 note 4 Ibid. p. 153.

page 694 note 1 Ibid. p. 330.

page 694 note 2 Blumer, Herbert, ‘Industrialization and Race Relations’, in Hunter, Guy (ed.), Industrialization and Race Relations (London, 1965), pp. 240–1.Google Scholar

page 694 note 3 Portions of pp. 694–697, below, were extracted, with revisions, from Greenberg, op. cit. pp.391–3 and 401–2.

page 696 note 1 Adam, Heribert and Giliomee, Hermann, Ethnic Power Mobilized: can South Africa change? (New Haven, 1979), p. 173.Google Scholar

page 696 note 2 Ibid. pp. 170–1.

page 696 note 3 Ibid. p. 186.

page 696 note 4 Ibid. pp. 7–12 and 177–78.

page 696 note 5 Ibid. pp. 218–19.

page 697 note 1 Greenberg, op. cit. passim.

page 698 note 1 Nattrass, Jill, ‘The Impact of the Riekert Commission's Recommendations on the “Black States”’, in South African Labour Bulletin, 5, 11 1979, p. 79.Google Scholar

page 698 note 2 See the discussion of Harry Oppenheimer's position on p. 667, above.

page 698 note 3 Magubane, op. cit. pp. 329–30; also see Legassick, Martin, ‘South Africa: capital accumulation and violence’, in Economy and Society, 3, 08 1974.CrossRefGoogle Scholar

page 699 note 1 Simkins, C. E. W. and Hindson, D., ‘The Division of Labour in South Africa, 1969—1977’, University of Natal, Pietermaritzburg, 1979, p. 43.Google Scholar That mobility, it is important to note, did not include advancement into ownership or management positions.

page 699 note 2 Nattrass, Jill, ‘Towards Racial Justice — What Can the Private Sector Do?’, South African Institute of Race Relations, 50th Anniversary Conference, University of the Witwatersrand, Johannesburg, 07 1979, pp. 910 and 18.Google Scholar

page 699 note 3 Francis Wilson, ‘Towards Economic Justice in South Africa’, ibid. July 1979, pp. 24–30; and van der Merwe, ‘Black Employment Problems’, pp. 28–29.

page 701 note 1 Kennecott Copper Corporation, already quoted, p. 672, above.