Business, Governance and Government in South Africa: The Legacy of Apartheid

Abstract

Business and government relations as well as industrial relations (such as between labor and capital) in general follow a corporatist pattern in South Africa (Adam 1998, Dunn and Donnelly 2006). Similarly to the experience in Europe (especially Germany), South African corporatism of today has its roots in past anti-liberal ideology and regime type (Murray 1982, Pretorius 2000, Streeck and Kenworthy 2003). Apartheid South Africa organized its economy based on the idea of autarchy and in a context of international isolation as a highly organized market economy (Barnes and Black 2003, Black 2001, Black and Mitchell 2002). A main organizing principle was that of racial segregation: the economy of the country depended on ‘white’ capital exploiting ‘black’ workers (Bramble and Barchiesi 2003, Lipton 1985, Murray 1982). The mining industry is illustrative in this respect. As Hönke points out in her chapter on HIV/AIDS governance, the industry was based on a racial model of migrant labor ever since the opening of the first mines in 1886 (Lipton 1985, Murray 1982). ‘Black’ Africans from all over Southern Africa were brought to the mines owned by ‘white’ settlers, as underpaid workers, separated from their families and exposed to dangerous and humiliating working conditions. The Chamber of Mines (CoM) played a key role in institutionalizing and maintaining this system.