The Political Economy of South Africa’s Post-apartheid Transition: The Rejection of Alternatives to Neoliberalism

South Africa’s post-apartheid transition has proven disastrous. But what caused this unfortunate trajectory?

Today, the country is marked by the emergence of a black elite of enriched capitalists who have benefitted from the globalization, neoliberalization and financialization of the economy in general, and from its Minerals-Energy and Financial Complex in particular. By contrast, inequalities, poverty and failing social provision have persisted. Recent attention has shifted to how this trajectory was initiated, with some suggesting a lack of available alternative policy options at the time of transition. The Political Economy of South Africa’s Post-apartheid Transition shows this to be false. In fact, a full range of progressive alternatives were rejected, leading to corresponding consequences from “state capture” to electoral defeat.

ISBN: 9798888907986

Publication date: July 1, 2026

Preface

1 How South Africa Rejected Political Economy and Progressive Policy: A Personal Journey
 1 Introduction
 2 From MERG …
 3 … through Labour Market Commission …
 4 … to NIEP/COSATU and Beyond

2 ESOP’s Fable: Golden Egg or Sour Grapes?
 Postscript as Personal Preamble
 1 ESOPs and Apartheid
 2 Conceptual Issues
 3 The Record of ESOP Performance
 4 Trade Union Responses
 5 Current Implications for South Africa
 Appendix 1: Summary from EROSA (1989)
 Appendix 2: Summary from EROSA (1990)

3 Defence Expenditure and the Post-apartheid Economy: A Briefing Paper for the ANC
 Postscript as Personal Preamble
 Summary of Conclusions and Recommendations
 1 Military Expenditure and Economic Development
 2 Is South Africa a Military-Industrial Complex?
 3 South Africa’s Economic Impasse
 4 South African Military Expenditure – Any Advantages?
 5 The Overwhelming Disadvantages
 6 From War on the People to the War Effort to Provide Basic Needs
 7 Conversion at the Macro Level
 8 Conversion at the Micro Level

4 Privatisation and the RDP: A Critical Assessment
 Postscript as Personal Preamble
 1 Introduction
 2 Some Theoretical Considerations
 3 Privatisation and the Demise of Apartheid
 4 What Were the Proposals?
 5 First Time – Farce; Second Time – Tragedy
 6 Privatisation Is Not Reconstruction
 7 Concluding Remarks

5 From Equal Pay and Minimum Wages through Public Works to Income Support
 Postscript as Personal Preamble
 1 Propositions Concerning Comparable Worth: Summary
 2 Some Notes on Job Creation Programmes
 3 Some Rough Notes on Income Maintenance Programmes (IMPs)

6 Industrial Policy and South Africa: A Strategic View
 Postscript as Personal Preamble
 Presentation of Main Points
 1 Introduction
 2 Defining Industrial Policy
 3 Industrial Strategy
 4 Implementation and Monitoring
 5 The Macroeconomic Environment
 6 Trade Policy

7 Vertical Relations in the South African Steel Industry
 Postscript as Personal Preamble
 Presentation of Main Points and Policy Recommendations
 1 Introduction
 2 The Economic Theory of Dumping
 3 The Political Economy of Dumping
 4 Legal and Administrative Considerations
 5 The Imperatives of Coordination
 6 The Structures and Dynamics of the World Steel Industry
 7 South African Steel in Transition
 8 Private and Public Interests in the South African Steel Industry
 9 Conclusions and Policy Recommendations

8 Privatisation and the Restructuring of State Assets in South Africa: A Strategic View
 Postscript as Personal Preamble
 Presentation of Main Points
 1 Introduction
 2 New Public Sector Economics for Old
 3 Origins and Patterns of Privatisation: The African Context
 4 Addressing the World Bank
 5 Implications for South Africa
References
Index