Efficient economic organisation is the key to successful economic growth and in the Western world this occurred in a capitalist framework. It was the development of this capitalist economic organisation in Western Europe that accounts for the rise of the West.1 This entailed the ‘establishment of institutional arrangements and property rights that create an incentive to channel individual effort into activities that bring the private rate of return close to the social rate of return’.2 This had already happened in Western Europe before Van Riebeeck arrived at the Cape in 1652.


Gold Minis State Capitalism Capitalist Development Sustained Economic Growth Secondary Sector 
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Notes and References

  1. 1.
    Douglass, C. North and Robert Paul Thomas, The Rise of the Western World, Cambridge, 1973, p. 1.Google Scholar
  2. 4.
    W. Arthur Lewis, Growth and Fluctuations, 1870–1913, London, 1978, p. 149.Google Scholar
  3. 5.
    John R. Shorten, The Johannesburg Saga, Johannesburg, 1970, p. 249.Google Scholar
  4. 6.
    See the article by Jon Inggs, ‘The Liverpool of the Cape: Port Elizabeth Trade: 1820–70’ in The South African Journal of Economic History, vol. 2, no. 1, 1987.Google Scholar
  5. 7.
    A. E. Hirschman, The Strategy for Economic Development, New Haven, 1958, p. 83;Google Scholar
  6. and W. W. Rostow, ‘Leading Sectors and the Take-off’, in W. W. Rostow (ed.), The Economics of Take-off into Sustained Growth, London, 1963, pp. 5–6.CrossRefGoogle Scholar
  7. 8.
    V. E. Solomon, ‘Transport’, in F. L. Coleman (ed.), South African Economic History, Pretoria, 1983, p. 93.Google Scholar
  8. 10.
    S. H. Frankel, Capitalist Investment in Africa, Oxford, 1983, pp. 81, 95.Google Scholar
  9. 11.
    D. Hobart Houghton, ‘Economic Development, 1865–1965’, in Monica Wilson and Leonard Thompson (eds), The Oxford History of South Africa, vol. II, Oxford, 1971, p. 14.Google Scholar
  10. 13.
    H. Klein (ed.), The Story of the Johannesbury Stock Exchange, 1887–1947, Johannesburg, 1948, p. 46.Google Scholar
  11. 15.
    Alfred D. Chandler, Jr, The Visible Hand: The Managerial Revolution in American Business, Cambridge, Mass., 1977.Google Scholar
  12. 18.
    Robert V. Kubicek, Economic Imperialism in Theory and Practice: The Case of South African Gold Mining Finance 1886–1914, Durham, N.C. 1979, p. 22;Google Scholar
  13. and S. H. Frankel, Investment and the Return to Equity Capital in the South African Gold Mining Industry, 1887–1965, Oxford, 1967.Google Scholar
  14. 19.
    D. Hobart Houghton, The South African Economy, Cape Town, 1967, p. 101.Google Scholar
  15. 22.
    F. Wilson, Labour in the South Africa Gold Mines, 1911–1969, Cambridge, 1972, p. 184.Google Scholar
  16. 27.
    South Africa: An Appraisal, Nedbank Group, 1983, p. 5.Google Scholar
  17. 32.
    H. Oppenheimer, Address to the Chicago Council on Foreign Relations, 30 March 1983, Supplement to Optima, vol. 31, no. 2, 1984.Google Scholar

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© Stuart Jones 1988

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  • Stuart Jones

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