The Elite Transition : From Apartheid to Neoliberalism in South Africa

The South African government came to power in 1994 promising radical change for ordinary South Africans, so many of whom had been oppressed and trapped in poverty and joblessness. Why, in less than half a decade, have hopes for anything radically new been dashed? Written by a leading critic of the current South African government, this book examines in detail the economic and social compromises that have been, and are being, made between the past and present powers. Basing his analysis on extensive documentation, Patrick Bond assesses whether these compromises can really lead to liberation for the mass of South Africans. He covers a range of socioeconomic factors under both the old and new South Africa, highlighting the reasons for the transition's "development" failure and drawing on case studies on key issues: social contracts, black economic empowerment, housing and corporate power. Bond explores the idea that progressive policymaking is being compromised by the new petty bourgeoisie and ruling elite, and assesses the view that, as change slows down, official policy is increasingly one of lower expectations. International Studies, Africa, Economics, Third World & Development Contents 6 List of Acronyms and Abbreviations 7 Introduction: Dissecting South Africa's Transition 10 Part I. Power and Economic Discourses 22 1. Neoliberal Economic Constraints on Liberation 24 UNCERTAIN CHANGE 24 ECONOMIC CRISIS 27 STALLING AND SHIFTING THE CRISIS 30 FINANCIAL POWER AND VULNERABILITY 33 INDUSTRIAL DECLINE DURING THE RISE OF GLOBALISATION 45 COMPARATIVE DISADVANTAGES 56 CONCLUSION: FROM ACCUMULATION CRISIS TO POLICY WHITEWASH 58 2. Social Contract Scenarios 62 SCENARIO PLUNDERING 62 THE SCENARIO OF ELITE COMPROMISE 64 CORPORATE SCENARIOS 67 LABOUR SCENARIOS 74 SOCIAL DEMOCRATIC SCENARIOS 79 THE NARROWING OF ECONOMIC POLICY DISCOURSE 83 GEARING DOWN 87 CONCLUSION: THE SCENARIOS' SUCCESS IN COERCING COMPROMISE 93 Part II. Social Contract Scenarios 96 3. Rumours, Dreams and Promises 98 CONFLICTING INTERPRETATIONS 98 LEFT DEFENCE OF THE RDP 102 TRAIN- WRECK 1: THE WHITE PAPER 106 TRAIN- WRECK 2: THE DEVELOPMENT OF URBAN AND RURAL UNDERDEVELOPMENT 115 TRAIN- WRECK 3: MARKET- DRIVEN SOCIAL POLICIES 121 CONCLUSION: THE USE AND ABUSE OF DEVELOPMENT DISCOURSE 127 4. The Housing Question 131 MATERIAL INTERESTS, IDEOLOGICAL CONFLICTS 131 STORMTROOPERS OF MARKET- CENTRED HOUSING POLICY 136 LATE APARTHEID POLICY PUZZLES 140 THE NATIONAL TOILET FORUM 143 THE ELITE TRANSITION IN HOUSING POLICY 147 POST- APARTHEID NEOLIBERALISM IN THE WHITE PAPER 153 CONCLUSION: AN ANSWER TO THE HOUSING QUESTION? 159 Part III. International Lessons 162 5. The World Bank as 'Knowledge Bank' (sic) 164 THE POWER OF GLOBAL NEOLIBERALISM 164 A LEGACY OF FINANCIAL INDISCRETION 166 CONTEMPORARY WORLD BANK WOES 169 URBAN MISSIONAIRIES 176 OPPOSITION TO LOANS AND MACROECONOMIC ADVICE 182 LENDING DROUGHT 189 CONCLUSION: THE BANK'S DIFFUSION OF 'KNOWLEDGE' 198 6. Beyond Neoliberalism? South Africa and Global Economic Crisis 201 TALKING LEFT, ACTING RIGHT 201 GLOBALISATION AS FINANCE- DRIVEN IMPERIALISM 205 FRIENDS AND ENEMIES 210 RHETORICS OF CRISIS 220 ACTING RIGHT, ATTRACTING LEFT CRITIQUE 225 REGIONAL REACTION 241 BEYOND THE ( POST- ) WASHINGTON CONSENSUS 247 CONCLUSIONS: WAYS FORWARD 253 Notes and References 262 FOR FURTHER READING 262 INTRODUCTION: DISSECTING SOUTH AFRICA S TRANSITION 264 1 NEOLIBERAL ECONOMIC CONSTRAINTS ON LIBERATION 266 2 SOCIAL CONTRACT SCENARIOS 274 3 RUMOURS, DREAMS AND PROMISES 277 4 THE HOUSING QUESTION 282 5 THE WORLD BANK AS 'KNOWLEDGE BANK' 290 6 BEYOND NEOLIBERALISM? SOUTH AFRICA AND GLOBAL ECONOMIC CRISIS 298 Index 312 ABSA [Amalgamated Banks of South Africa] 26 35 Abuja Declaration 237 246 Adam, Heribert 56 65 Africa Development Bank 166 175 African Bank 43 52 African Council of Hawkers and Informal Businesses 41 50 African Merchant Bank 43 52 African National Congress [ANC] 13 4 13 16 25 and foreign debt 176-7 185 and investment 36 45 and neoliberal policies 53-4 62 and neoliberal policies 98 107 and power-sharing 63-4 72 and RDP 89 98 and scenario planning 60 69 conservative shift 3 12 economic policy 32 41 economic policy 83 92 foreign policy 214 223 regional policy 235-8 244 second cabinet 226 235 talking left, acting right 120 129 talking left, acting right 120 129 talking left, acting right 195 204 talking left, acting right 195 204 Ahmed, Junaid 106 115 Alternative Information and Development Centre 249 258 Alusaf 36 45 Alvarez, Sonia 249 258 Amin, Samir 2 11 Andrews, Mercia 243 252 Angel, Shlomo 169 178 Anglo American Corporation 34 25 34 29 38 and neoliberalism 55 64 and Urban Foundation 125 134 listing in London 26 35 scenario planning 58 67 Angola 72 81 anti-apartheid movement 57 48 57 252 261 ANZ Grindlays 29 38 apartheid debt 91 82 91 249 258 arms sales 219 228 Armscor 90-1 99 Arrighi, Giovanni 251 260 articulations of modes of production 6 15 arts funding 114 123 Asmal, Kader 171 180 automation 9 18 Aventura Resorts 54 45 54 privatisation 45 54 Badenhorst, Piet 26 35 Banana, Canaan 231 240 Banda, Hastings 157 166 Bank of International Settlements 202 211 Bank of Lisbon 25 34 Bankorp 30 39 bankruptcies 29 38 bantustans 6 15 Barclays Bank 30 39 Barlow Rand 25 34 Barnardt, Nick 83 92 Barrell, Howard 211 220 basic needs 28 19 28 and private sector 92-3 101 and RDP 36 45 and RDP 94-5 103 underproduction 18 27 Baskin, Jeremy 69 78 Batonga people 157 166 Bello, Walden 209 218 Bendana, Alejandro 209 218 Bengu, Sibusiso 218 227 Bernstein, Anne 107 116 Bhagwati, Jagdish 202 211 Bilderberg group 165 174 Billiton mining group 25 34 Biwater Corporation 45 54 Black Economic Empowerment 37-8 46 black workers 14 5 14 wages 20 29 black/white coalition government 59 68 Blair, Tony 202 211 Blank, Greg 26 35 block-busting 61 70 BOE NatWest Securities 83 92 Botha, P.W. 129 138 Botshabelo conference 148 139-40 148 141 150 Botswana 232 241 Bourdieu, Pierre 209 218 Brazil 19 28 Brenner, Robert 2 11 Bretton Woods Agreement 197 206 Bretton Woods Institutions 164 155 164 157 166 Brimstone 46 55 Brown, Ron 48 57 Brunhoff, Suzanne de 2 11 Brutus, Dennis 209 218 Buchanan, Pat 164 173 bureaucracy 106 97 106 221 230 Buthelezi, Gatsha 90 99 Buthelezi, Mangosuthu 32 41 buying building societies 39 30 39 consumer alienation 34-5 43 deregulation 25 34 discrimination 34 43 financial stability 30 39 incentives to 146-7 155 offshore subsidiaries 29 38 overcharging 31 40 regulation 31 40 scenario planning 71 80 township loans 28-9 37 cabinet reshuffle 224-6 233 Cachalia, Firoz 245-6 254 Camdessus, Michel 88 79 88 189 198 and Cansa 184 193 Campaign Against Neoliberalism in South Africa [Cansa] 193 184 193 185-9 194 Cape Investment Bank 26 35 capital 14 accumulation 5 14 shortage 132 141 surplus 181 190 capital flight 34 25-6 34 193 202 capital-labour ratio 8-9 17 capitalism 49 and black empowerment 40-1 49 and black empowerment 46 55 and corporatism 69 78 cashew processing industry 228 237 Castro, Fidel 209 218 Cato Institute 202 211 Celotti, Marco 26 35 Center for Concern 210 219 Centre for Development and Enterprise 107 116 Centre for Southern African Studies 235 244 Chambati, Ariston 229 238 Chavez, Hugo 206 215 Cheru, Fantu 233-4 242 Chidzero, Bernard 229 238 Chikane, Rev Frank 174 183 child maintenance grant 227 218 227 rights 114 123 Chile 4 13 Chiluba, Frederick 231 240 Chissano, Joaqim 229 238 Chomsky, Naom 209 218 Christiansen, Robert 172 181 CIA 165 174 cities 168-70 177 civil service 51 42 51 221 230 civil society 120 111 120 activists 102 111 and democratisation 101 110 and post-apartheid policy 217 226 and post-apartheid policy 220 229 and regional policy 251 260 Clarke, Simon 2 11 Clinton, Bill 202 211 Cobbett, Billy 144 135 144 144 153 and Operation Masakhane 108 117 criticism of 218 227 Cockburn, Alexander 56 65 Codesa negotiations crash 133 142 Coega minerals processing 36 45 coercive harmony 125 134 Cohen, Michael 131 140 Columbus stainless steel 36 45 Commission on Development Finance 137-8 146 Community Bank 147 156 Community Reinvestment Act 141 150 compacts, social 59 68 competitiveness 47 56 compradorism 16 25 Congo 232 241 CoNGOs 210 219 consultancies 129-31 138 Consultative Business Movement [CBM] 69-70 78 Cooper, David 172 181 cooperative regionalism 235 244 Copelyn, Johnny 45 54 corporate welfare 36 45 corporatism 69 78 corruption 72 81 Cosatu [Congress of South African Trade Unions] 33 24 33 75 84 and GATT 55 64 and National Framework Agreement 80 89 and RDP 99 108 and scenario planning 60 69 and socialism 64 73 empowerment fund 45 54 housing policy 135 144 Industrial Strategy Project [ISP] 65-70 74 opposition to Gear 83-4 92 opposition to Gear 225 234 Country Assistance Strategy 183-4 192 crime 28 19 28 economic 27 36 criminal justice system 222 231 crisis 11 2 11 global 207 216 self-contradictions 8-9 17 Cronin, Jeremy 82 91 Cronje, Danie 26 35 cross-subsidisation 90 81 90 116 125 currency crash 41 32-3 41 82-3 91 currency smuggling 25 34 Davidson, Paul 210 219 Davies, Rob 235 244 de Beer, Zach 128 137 De Beers 27 36 de Klerk, F.W. 69 60 69 135 144 De Kock Commission 25 34 de Kock, Gerhard 31 40 De Loor Task Force 126 135 de Loor, Joop 132 141 de Ridder, Johan 138 147 decentralisation 22 31 decommodification 93-4 102 deconcentration points 22-3 31 deflation 73 82 deindustrialisation 49 58 delinking 68 77 democracy 23-4 32 Democratic Movement academics 138 129-30 138 and big business 24 33 and housing policy 135 144 and RDP policy 94 103 and World Bank 160 169 compromise 54 63 Growth through Redistribution 71 80 hoodwinked 126 135 need for activism 85 94 Democratic Party 76 85 depression 20 29 deracialisation 61 70 deregulation 77 86 destratification 93 102 devaluation 10 19 developers, incentives to 146-7 155 Development Bank of Southern Africa [DBSA] 87 78 87 132 141 Development Group for Alternative Policies 165 174 Dexter, Philip 82 91 diamonds 20 29 disempowerment 44 53 disinvestment 25-6 34 disproportionalities 6 15 Ditlhake, Abie 173 182 Dlamini-Zuma, Nkosazana 229 220-1 229 222 231 Dor, George 243 252 Dornbusch, Rudiger 202 211 Dulles, Allen 165 174 Eatwell, John 210 219 economic crisis 27 18-21 27 stalling and shifting 21-4 30 Edstrom, Judith 189 180 189 185 194 education 95 104 electricity 14 5 14 bill boycotts 84 93 grids 22 31 electrification 95 104 elite pacting 64 55 64 252 261 Elson, Diane 2 11 energy 238 247 Engels, F. 2 11 environment policy 113 122 equal opportunities 76-7 85 Ernst & Young 63 72 Erwin, Alec 35 26 35 and Gear 51 60 and WorldBank 156 165 and WorldBank 156 165 and WorldBank 186 195 and WorldBank 186 195 criticism of 217-18 226 on RDP 92 101 removing tariffs 67 76 Eskom 45 36 45 and townships 103 112 foreign loans 158-9 167 tariffs 221 230 euro-convertible bond 204 213 European Union 102 111 evictions 140 149 exchange controls 79 88 exchange rate predictions 79 88 export-led growth policies 32 23 32 62 71 Fabcos [Foundation for African Business and Consumer Services] 42 51 Fallon, Peter 179-80 188 Fanon, Frantz 46 55 farmworkers 109 118 finance capital 197 206 financial crisis 202 193-4 202 Asian 205 214 management 3 12 rhetorics of 211-14 220 financial rand [finrand] 25 34 financial sector 33 and power 24-35 33 boom-bust unevenness 28 37 employment 27-8 36 regulation 241 250 financial speculation 83 74 83 and overaccumulation 11 20 and overaccumulation 11 20 and overaccumulation 21 30 and overaccumulation 21 30 Fine, Alan 98 107 Fine, Ben 2 11 First National Bank 29 38 fiscal discipline 107 98 107 144 153 Fischer, Stanley 162 171 Fivas, George 219 228 flamingo scenario 70-1 79 flexible specialisation 65 74 Ford, Henry 5 14 foreign debt 120 111 120 cancellation 208 217 relief 165 174 repayment 158-9 167 rescheduling 200 209 foreign policy 214 223 Frankel Max Pollock Vinderine 35 26 35 63 72 Fraser-Moleketi, Geraldine 218 227 Free Market Foundation 71 80 Freedom Charter [1955] 13 4 13 125 134 Freedom of Information Act 72 81 Frelimo [Front for the Liberation of Mozambique] 227 236 French Regulation Theory 65 74 Friedman, Michele 130 139 Friedman, Milton 4 13 Friends of the Earth 203 212 Fundstrust 26 35 Gashi, Kayaletu 106 115 GATT [General Agreement on Tariffs and Trade] 48 39 48 67 76 Gauteng province 116 107-8 116 140 149 Gelb, Stephen 77 86 Gencor 25 34 General Export Incentive Scheme 39 48 Genmin 234 243 geopolitics 3 12 George, Susan 209 218 ghettos 150 159 Ginden, Sam 69 78 Gini coefficient 19 28 global economic crisis 12 3 12 198-9 207 Global Economic Crisis 212-14 221 Global Exchange 163 172 global finance 209 200 209 and job losses 84 93 and regulation 210 219 as imperialism 196-201 205 of people 197 206 resistance to 191 200 globalisation 13 4-5 13 and financial crisis 212 221 de-globalisation 251 260 Godongwana, Enoch 67 76 Godsell, Bobby 98 107 gold 20 29 gold boom 23 32 golden triangle 77 86 Golding, Marcel 45 54 Goldstone Commission 41 50 Gordon, Donald 204 213 Gore, Al 49 58 Gouws, Rudolf 98 107 Government of National Unity 63 54 63 90 99 Gramsci, A. 50 59 Great Depression 197 206 Greenspan, Alan 202 211 Gross Domestic Product 28 19 28 80 89 Grossman, Heinrich 2 11 Growth, Employment and Redistribution [Gear] 11 2 11 189-90 198 and civil service 42 51 and RDP 113 122 opposition to 83-4 92 predictions 51 60 predictions 238-9 247 spin-control 82-4 91 G[- 7] 228 16 Habitat conference[1996] 169 178 Hadland, Adrian 120 129 Hanekom, Derek 117 108-9 117 218 227 Hanlon, Joe 138 147 Harper, Colin 26 35 Harvey, David 2 11 hawkers 41 50 health care 104 95 104 and regional cooperation 238 247 managed healthcare 183 192 primary health clinics 54 63 primary health clinics 114 123 hegemonic bilateralism 235-6 244 Helms, Jesse 163-4 172 Henderson, Hazel 210 219 Henry Ansbacher bank 29 38 Heritage Foundation 202 211 Highly-Indebted Poor Countries [HIPC] 227 236 Hilferding, R. 2 11 Hinds, Manuel 162 171 HIV/AIDS 49 58 Holomisa, Bantu 119 128 home loans 28 37 Homeless People's Federation 148 139 148 144 153 homelessness 124 133 Hopkins, Terence 251 260 housing 103 associations 94 103 bond boycotts 132 141 bond boycotts 142 151 costs 122-3 131 homeownership 28 37 homeownership 72 81 homeownership 128 137 homeownership 131 140 low-cost 18 27 rural 110 119 solutions 150-1 159 Housing Accord 139-43 148 Housing Bank 95 104 housing bonds 32 23 32 128 137 housing construction 158 corruption 149 158 locations 149 158 private sector 22 31 subsidies 61-2 70 subsidies 140 149 townships 22 31 housing policy 43 and racial segregation 34 43 and racial segregation 127-8 136 and resource allocation 123-4 132 failure of 124-5 133 market-centred 127-31 136 privatisation 133-4 142 public housing programmes 123 132 shortage of capital 132 141 subsidies 133-4 142 Housing White Paper [HWP] 144-50 153 human rights 114 123 Human Sciences Research Council [HSRC] 63 72 Icarus scenario 70-1 79 Ikageng share purchase scheme 44 53 IMF [International Monetary Fund] 12 3 12 advisory teams 159 168 and debt crisis 158 167 conditionality 178-9 187 conditionality 240-1 249 damage to South Africa 156 165 damage to South Africa 157 166 IMF riots 170 179 power of 16 25 projections 77-8 86 Independent Development Trust [IDT] 126 135 Industrial Development Corporation 36 45 industry 47 and foreign competition 38 47 decline 36-46 45 excess capacity 98 107 inequality 28 19-20 28 gender 19 28 global 198 207 inflation 10 19 infrastructure 31 22 31 affordability 110-11 119 harmonisation of 238 247 Inkatha 224 233 Innes, Duncan 67-8 76 interest rates 39 30-1 39 and competition 33 42 high 25 34 home loans 61-2 70 lowering 33-4 42 projections 79 88 real 32 41 intermediate capital goods 18 27 International Bank for Reconstruction and Development 180 189 international competition 9 18 international competitiveness 75 66 75 68 77 International Institute of Finance 3 12 International Management Institute 47 56 investment 20 11 20 fixed 36 45 foreign 32 41 foreign 201 210 public sector 81 90 strike 82 91 tax incentives 80 89 Iscor retooling 80 89 Jaycox, Kim 163 172 job creation 36-7 45 Jobs Summit [1994] 126 135 Johannesburg 6 15 Johannesburg Chamber of Commerce 23 32 Johannesburg Consolidated Investments [JCI] 43 52 Johannesburg Stock Exchange [JSE] 30 21 30 and foreign money 32 41 index 44 53 overvalued shares 74 83 Johnnic 43 52 Johns Hopkins University School of Public Health 7 16 Johnson, R.W. 174 183 Jonathan, Leabua 159 168 Jones, Jim 75-6 84 Jordan, Pallo 119 128 Jubilee [ 210 219 Kabila, Laurent 219 228 Kagarlitsky, Boris 209 218 Kagiso Trust 102 111 Kamfer, Ansi 26 35 Kane-Berman, John 40 49 Kaplinsky, Raphael 65-6 74 Kariba hydroelectric dam 157 166 Kasrils, Ronnie 219 228 Keet, Dot 251 260 Kempton Park constitutional negotiations 75 84 Kenya, land reform 172 181 Keynes, John Maynard 71 80 Keynesian doctrine 55 64 Keys, Derek 25 34 Khor, Martin 209 218 Khosa, Meshack 41 50 Khumalo, Mzi 43 52 Kim Dae Jung 207 216 King, Martin Luther 158 167 Kissinger, Henry 202-3 211 Koh Young-joo 215 224 Kohl, Helmut 4 13 kombi-taxis 40 49 Korea 214 223 Kriel, Hernus 91 100 Krugman, Paul 204 213 KwaZulu/Natal premiership 233 224 233 flexibility 180 189 labour market 114 123 mobility 22 31 productivity 80 89 Labour Relations Act [1994] 93 84 93 220 229 labour tenants 109 118 Lafontaine, Oskar 205 214 Lagos Plan of Action 237 246 Lamb, Geoffrey 161 170 land 93 invasions 84 93 prices 29 38 redistribution 173 182 reform 108-9 117 Land and Agriculture Policy Centre [LAPC] 172 181 Land Bank 109 118 Land Investment Trust 129 138 landmines 208 217 Laurence, Patrick 40 49 le Roux, Peter 70 79 Lee, Kew Sik 168 177 Lee, Robin 74 83 Lekota, Patrick 119-20 128 Lenin, V.I. 2 11 Lesotho 220 229 Lesotho Highlands Water Project 159 168 leveraged deals 42 51 liberalisation 82 91 liberation movement 26 compromise 17 26 mandate 3 12 unbanning of organisations 15 24 Liberty Life 25 34 lifeline tariff 113 122 loans 178 conditions 169 178 defaults 34-5 43 opposition to 180-6 189 repayment 129 138 local government 113 elections 104-5 113 funding 105 114 illegitimate 132 141 implementing RDP 104 113 racism 104 113 resignations 135 144 women in 117 126 Local Government Transition Act [LGTA] 101 110 Lombard, Christoffel 26 35 Lombard, Jan 27 36 Lombard, Professor 76 85 London School of Economics 181 190 Long-Term Capital Management [LTCM] 239 248 Lopez, Carlos 186 195 Lott, Trent 202 211 Lucas, Robert 179-80 188 Lula [Luis Ignacio da Silva] 209 218 Luthuli, Arthur 158 167 Luxemburg, Rosa 2 11 luxury goods 27 overproduction of 18 27 protected 5 14 machines, underproduction of 27 18 27 73 82 Macozoma, Saki 246 255 macro-balances 61-2 70 MacroEconomic Research Group [Merg] 75-6 84 macroeconomics 62 53 62 187 196 compromise 84-5 93 policy formation 74-5 83 policy formation 74-5 83 policy formation 83 92 policy formation 83 92 Madikizela-Mandela, Winnie 119-20 128 Maduna, Penuell 221 230 Mahachi, Moven 229 238 Maharaj, Mac 119 128 Mahathir, Mohamad 204 213 Mahlangu, Ndaweni 225 234 Makazoma, Saki 45 54 Makgetla, Neva 71 80 Making Democracy Work 75 84 Malawi 157 166 Malaysia 19 28 Malbak 25 34 Managing Change 69 78 Mandel, Ernest 2 11 Mandela, Nelson 93 84 93 and bond boycotts 135 144 and Operation Masakhane 107 116 and RDP 89 98 conspicuous consumption 100 109 on anarchy 223 232 on Freedom Charter/nationalisation 16 25 on globalisation 196 205 on regional policy 235 244 release of 15 24 Manuel, Trevor 35 26 35 and foreign debt 177 186 and Gear 78 87 and Mont Fleur 70 79 and World Bank 156 165 criticism of 217 226 removing tariffs 49 58 manufacturers 47 and foreign competition 38 47 comparative disadvantages 47-9 56 Marais, Jan 26 35 Marcos, Subcommandante 209 218 market forces 131 140 Marx, Karl 2 11 Marxism 7 16 Mass Democratic Movement [MDM] 89 98 Mattick, Paul 2 11 Mau Mau rebellion 172 181 Mauritius 232 241 Mavundla, Lawrence 39 48 Mayekiso, Moses 53 44 53 137 146 Mayekiso, Vax 143 152 Mbeki, Thabo 233 and cabinet reshuffle 224-6 233 and economy 246 255 and foreign debt 176 185 and Gear 83 92 and RDP 112-13 121 and RDP 119-20 128 and World Bank 156 165 conspicuous consumption 100 109 Mboweni, Tito 70 79 McCarthy, Jeff 128 137 Mckinley, Dale 83 92 Mdladlana, Membathisi 220 229 Mdlalose, Frank 91 100 media, restructuring of 72-3 81 medicines, and multinational companies 49 58 Meer, Fatima 243 252 Menchu, Rigoberto 209 218 Mercosur meetings 1998 196 205 metal markets 37 46 Metropolitan Life 43 52 Meyer, Roelf 101 110 Mhone, Guy 82 91 Millward, Charles 177 186 minerals 5 14 minerals-energy complex 18 27 mines, safety 114 123 mineworkers' investment funds 45 54 mining finance houses 22 31 Miyazawa initiative 205 214 Mlambo-Ngcuka, Phumzile 48 39 48 224 233 Mobius, Mark 201 210 Mobutu, Sese Seko 157 166 Modise, Joe 90-1 99 Mofokeng, Dan 139 148 Mokaba, Peter 225 234 Mokoena, Albert 42 51 Moll, Terrence 77 86 Molobi, Eric 138 147 Momomiat, Ishmail 98 107 monopoly capital 37 46 Mont Fleur scenarios 70-1 79 Moodley, Kogila 56 65 Moody, Kim 244 253 Moore, David 205 214 Moosa, Valli 219 228 Morgan, Allan 91 100 Mortgage Indemnity Scheme 155 146 155 149 158 Moseneke, Dikgang 44 53 Mossgas 100 109 Motlana, Dr Nthato 43 52 Motlatsi, James 45 54 Motor Industry Task Force 67 76 motor industry, tariff agreement 67 76 Motshekga, Mathole 119 128 Mount Ayliffe 105 114 Movement for Democratic Change [MDC], Zimbabwe 231 240 Moyanda, Kenneth 229 238 Mozal aluminium smelter, Maputo 36 45 Mozambique 167 158 167 foreign debt 226-9 235 Mpumalanga premiership 225 234 Mthembi-Mahanyele, Sankie 153 144 153 148 157 Mtshali, Lionel 224 233 Mufamadi, Sydney 219 228 Mugabe, Robert 42 51 Multilateral Agreement on Investment 208 217 municipalities 113 104-6 113 election deal 101-2 110 Murerwa, Herbert 229 238 Murray & Roberts 234 243 Nabudere, Dani 2 11 Nader, Ralph 209 218 Naidoo, Jay 127 118 127 and Gear 190 199 and Operation Masakhane 107 116 and RDP 89 98 and RDP 102 111 and telecommunications 81 90 Namibia 232 241 National African Chamber of Commerce 42 51 National Economic Forum 64 55 64 67 76 National Framework Agreement 1 10 National Growth and Development Strategy [NGDS] 106 115 National Housing Bank 138 147 National Housing Finance Corporation 138 147 National Housing Forum [NHF] 102 93 102 126 135 National Institute for Economic Policy 7 16 National Intelligence Agency 219 228 National Party [NP] 31 40 National Social Agreement 81 90 National Sorghum Breweries 43 52 National Union of Metalworkers [Numsa] 67 76 National Urban Reconstruction and Housing Agency 147 156 nationalisation 24 15-16 24 114-15 123 nationalism 259 and internationalism 250 259 Third World 205-7 214 Native Land Husbandry Act, Rhodesia 157 166 Nattrass, Nicoli 57 66 Ncube, Don 42-3 51 Ndungane, Njungonkulo 243 252 Nedbank 24 33 Nedcor 30 39 Nedcor/Old Mutual, scenario planning 64 55 64 65 74 Nedlac Community Constituency 118 127 Nell, Matthew 133-4 142 Nelspruit 45 54 neomercantilism 235 244 Netshitenzhe, Joel 220 211-12 220 222-3 231 New African Investments Limited [Nail] 43 52 New International Economic Order 206 215 New Republic Bank 43 52 New Urban Management Programme [World Bank] 169 178 NGOs 98 89 98 and Transitional National Development Trust 102 111 CoNGOs 210 219 NHF-Shill deal 136-7 145 Nhlanhla, Joe 219 228 Nielson, Kerr 200 209 Nigeria 19 28 Nolutshungu, Sam 39-40 48 Normative Economic Model [NEM] 7 16 nuclear energy 221 230 Nyati, Eugene 42 51 Nyerere, Julius 209 218 Nzimande, Blade 211 220 Nzo, Alfred 219-20 228 OECD 47 56 oil spot strategy 129 138 Old Mutual 39 30 39 corruption 74 83 shifting to London 26 35 Old World Order 202-3 211 Olver, Chippy 106 115 Omar, Dullah 222 231 Operation Masakhane 110 101 110 107-8 116 Osborn, Edward 175 184 outward orientation 22 31 overaccumulation 17 8-11 17 36 45 and Black Taxi Association 42 51 and foreign investment 48 57 crisis 6 15 overbuilding, commercial property 29 38 overproduction 6 15 Owen, Ken 175 184 Oxfam 165 174 Pamodzi 46 55 Paths to Economic Growth 175 184 Patkar, Medha 209 218 pensions 230 239 Pepsi 43 52 Perm building society 59 68 permanent revolution 6 15 Peterson, George 169-70 178 PG Bison 69 78 Phosa, Matthews 119 128 Pilger, John 209 218 Pillay, Devan 71 80 Pillay, Vella 75-6 84 Planact 7 16 Platform for Investment 72 63 72 73 82 Popcru union 219 228 populism 71 80 Porter, Michael 217 226 Post-Fordism 14 5 14 69-70 78 Post-Washington Consensus 203-5 212 poverty 14 5 14 and welfarism 61 70 power-sharing 63-4 72 Premier 69 78 prescribed asset requirements 69 60 69 62 71 Presidential Project Team [PPT] 106 115 Presidential Projects 100 109 Preston, Lewis 155 164 Private Sector Council on Urbanisation 107 116 private sector debt 25 34 privatisation 54 45 54 241-2 250 of local services 219 228 of marketing boards 218 227 Professional Economists Panel [PEP] [Nedcor/Old Mutual] 70-3 79 property rights 16 25 Prospects for Successful Transition 60 69 protectionism 47 56 protective tariffs 67 76 protests and boycotts 93 84-5 93 134-5 143 pyramid schemes 35 44 racial Fordism 5 14 racial integration 60 69 Racki, Jeff 161 170 Radebe, Jeff 221 230 Ralph Nader networks 163 172 Ramaphosa, Cyril 16 7 16 119 128 Rantau, Jovial 120 129 rates, subsidised by blacks 103 112 Reagan, Ronald 4 13 Real Africa Holdings 42-3 51 rearmament 219 228 recession 23 32 recolonisation 229 238 Reconstruction and Development Programme [RDP] 13 4 13 113-18 122 abandoned 16 25 abused 118-21 127 and 'the markets' 98 107 and democratisation 95 104 and foreign loans 96 105 and housing policy 115-16 124 and housing policy 125 134 and IMF 179 188 and land redistribution 173 182 and neoliberalism 99 108 and regional policy 237-8 246 and right-wing ideas 92 101 and socialism 93 102 basic needs 36 45 basic needs 94-5 103 conflicting interpretations 89-93 98 defended by left 93-7 102 effectiveness of 106-12 115 implementation of 35 44 implementation of 104 113 National Growth and Development Strategy 83 92 Policy Audit 112 121 populist developmentalism 96-7 105 progressive components 54-5 63 progressive components 89 98 White Paper 98-102 107 red-lining 34 43 redistribution 63 54 63 108-9 117 regional policy 235-8 244 Rembrandt [Richemont] 25 34 reproduction of labour power 122-3 131 Reserve Bank 40 31-2 40 and Gear 78 87 and loan repayment 177 186 forward cover protection 31 40 independence 72 81 independence 114 123 macro-balances 61-2 70 revolution 63 72 Rhodesia 157 166 Richards Bay 22 31 Roome, John 171 180 Roux, Andre 98 107 Roy, Arundhati 209 218 Rubin, Robert 202 211 Ruggiero, Renato 196 205 Rupp, Leila 249-50 258 Rural Development Strategy 115 106 115 108 117 Rustonjee, Zav 25 34 Saatchi and Saatchi 102 111 Sachs, Jeffrey 204 213 Sage 25 34 Said, Edward 209 218 Sam, Isaac 182 191 Samsudin 43 52 Sanco Holdings 44-5 53 sanctions 23 32 Sandler, Jonty 44 53 sanitation 22 31 Sanlam 36 45 Sanlam-Rembrandt 24 33 Sardar Sarovar dam 162 171 Satgar, Vishwas 83 92 Saul, John 94 103 scenario planning 25 16 25 244 253 and false expectations 57 66 corporate scenarios 58-65 67 effect on economic policy 74-8 83 effect on working-class 84 93 elite compromise 55-7 64 inaccurate predictions 58 67 inaccurate predictions 81 90 labour scenarios 65-70 74 megatrends 56 65 social democratic scenarios 70-4 79 Schapiro, David 26 35 Schlemmer, Lawrence 57 66 school governance 113 122 Schroeders bank 164-5 173 Schumpeter, J.A. 10 19 Schwarz, Harry 178-9 187 Scott, Bruce 60 69 Scramble for Africa 197 206 security forces, restructuring of 72 81 Sekunjalo 46 55 self-help 130-1 139 Semtrachem 29 38 Sen, Amartya 239 248 Servcon 146 155 settler capital 5 14 Seven Buildings Project, Johannesburg 140 149 Sexwale, Tokyo 107 116 Sharpeville massacre 158 167 shebeen owners 41 50 Shell 69 78 Shill, Louis 142 133-4 142 140 149 Shilowa, Mbhazima 83 92 Shilowa, Sam 180 189 Shiva, Vandana 209 218 Shultz, George 203 212 Sibanda, Gibson 230 239 Sigcau, Stella 222 231 Sishen-Saldanha 22 31 Sisulu, Max 76 85 Sisulu, Zwelakhe 44 53 site-and-service policy 135 126 135 136 145 Skweyiya, Zola 221 230 Slovo, Joe 100 91 100 143 152 Small Business Development Corporation 36 45 Smit, Ben 78 87 Smit, Dan 130 139 Smith, Gordon 246 255 Smith, Neil 2 11 social assistance 116 125 social contract philosophy 3 12 social contracts 60 51 60 125 134 and trade union power 84 93 Operation Masakhane 108 117 Record of Understanding 145-6 154 social investment taxes 60 69 social market economy 128 137 social movements 62 53-4 62 and housing policy 126-7 135 emasculation of 55-6 64 new 207-11 216 publications 209 218 socialism 6 15 software piracy 49 58 solidarity, types of 248 257 Soros, George 203-4 212 South Africa 29 and world economy 20 29 competitiveness 47 56 domination of Southern Africa 234-5 243 economic history 17 26 export strategy 38-9 47 South Africa Foundation 83 92 South African Airways 22 31 South African Black Taxi Association 42 51 South African Breweries [SAB] 35 26 35 41 50 South African Chamber of Business 83 92 South African Clothing and Textile Workers Union 67 76 South African Communist Party [SACP] 63 54 63 94 103 Political Education Secretariat 83 92 South African Foreign Trade Organisation 38 47 South African Institute of Race Relations 40 49 South African National Civic Organisation [Sanco] 41 32 41 34-5 43 and housing policy 127 136 and housing policy 127 136 and housing policy 139 148 and housing policy 139 148 bond boycotts 134 143 Commission on Development Finance 137-8 146 South African National Defense Force [SANDF] 237 246 South African NGO Coalition [Sangoco] 243 252 South African railways/harbours 158 167 Southern Africa, integration 235-8 244 Southern African Development Community [SADC] 241 232 241 236 245 Southern Life 69 78 Soweto 125 134 Spatial Development Initiatives 45 36 45 218 227 spatial tactics 22-3 31 spaza shops 41 50 sport and recreation 116 125 squatters' rights 91 100 Stals, Chris 35 26-7 35 217 226 Standard Bank 29 38 Standard Chartered bank 30 39 State, Property Relations and Social Transformation 211-12 220 Stellenbosch Bureau for Economic Research 77-8 86 Steyn, Greta 36 45 Steyn, Jan 129 138 Stiglitz, Joseph 174 165 174 239-42 248 stock market crash 21 30 Stocks & Stocks 139 148 Strauss, Conrad 109 118 strikes 36 45 Structural Adjustment Participatory Review Initiative 210 219 Structural Adjustment Programmes 188 197 subsidies 109 100 109 agricultural 218 227 for commuters 221 230 Suharto 203 212 Summers, Lawrence 171 162 171 205 214 sunset apartheid 138 147 Sunter, Clem Contents......Page 6 List of Acronyms and Abbreviations......Page 7 National Framework Agreement 1......Page 10 Part I. Power and Economic Discourses......Page 22 15-16......Page 24 18-19......Page 27 stock market crash 21......Page 30 Volkskas Bank 24......Page 33 strikes 36......Page 45 47......Page 56 49......Page 58 53-4......Page 62 emasculation of 55-6......Page 64 Wack, Pierre 58......Page 67 labour scenarios 65-70......Page 74 UWC Institute for Social Development 70......Page 79 effect on economic policy 74-8......Page 83 neoliberalism 78......Page 87 urban riots 84-5......Page 93 Part II. Social Contract Scenarios......Page 96 progressive components 89......Page 98 defended by left 93-7......Page 102 97......Page 106 and urban policy 106......Page 115 Policy Audit 112......Page 121 abused 118-21......Page 127 reproduction of labour power 122-3......Page 131 127......Page 136 Urban Reconnaissance Missions 131......Page 140 bond boycotts 134......Page 143 United States Agency for International Development 138......Page 147 144......Page 153 solutions 150-1......Page 159 Part III. International Lessons......Page 162 Preston, Lewis 155......Page 164 Zaire 157......Page 166 and World Bank 160......Page 169 URBAN MISSIONAIRIES......Page 176 opposition to 173-86......Page 182 Shilowa, Sam 180......Page 189 189-90......Page 198 TALKING LEFT, ACTING RIGHT......Page 201 Ruggiero, Renato 196......Page 205 201-2......Page 210 State, Property Relations and Social Transformation 211-12......Page 220 ACTING RIGHT, ATTRACTING LEFT CRITIQUE......Page 225 Zambia 232......Page 241 238......Page 247 244......Page 253 FOR FURTHER READING......Page 262 INTRODUCTION: DISSECTING SOUTH AFRICA S TRANSITION......Page 264 1 NEOLIBERAL ECONOMIC CONSTRAINTS ON LIBERATION......Page 266 2 SOCIAL CONTRACT SCENARIOS......Page 274 3 RUMOURS, DREAMS AND PROMISES......Page 277 4 THE HOUSING QUESTION......Page 282 5 THE WORLD BANK AS 'KNOWLEDGE BANK'......Page 290 6 BEYOND NEOLIBERALISM? SOUTH AFRICA AND GLOBAL ECONOMIC CRISIS......Page 298 Index......Page 312 26-7......Page 35 South African National Defense Force [SANDF] 237......Page 246 Tucker, Bob 56......Page 65 Africa Development Bank 166......Page 175 Times Media Limited 43......Page 52 41......Page 50 Volcker, Paul 4......Page 13 16......Page 25 and foreign debt 176......Page 185 Roux, Andre 98......Page 107 revolution 63......Page 72 Venezuela 60......Page 69 social contract philosophy 3......Page 12 32......Page 41 Zita, Langa 83......Page 92 214......Page 223 Southern Africa, integration 235-8......Page 244 foreign debt 226-9......Page 235 Rantau, Jovial 120......Page 129 talking left, acting right 195......Page 204 Tsele, Molefe 249......Page 258 Wood, Ellen Meiksins 2......Page 11 World Development Report 243......Page 252 Peterson, George 169-70......Page 178 Sage 25......Page 34 Value Added Tax 29......Page 38 Soweto 125......Page 134 security forces, restructuring of 72......Page 81 trade with 48-9......Page 57 252......Page 261 and Gear 82......Page 91 cut-off 219......Page 228 Modise, Joe 90-1......Page 99 Wallerstein, Immanuel 251......Page 260 rural 6......Page 15 rights 114......Page 123 and land reform 171-3......Page 180 surplus value 9......Page 18 privatisation 45......Page 54 Movement for Democratic Change [MDC], Zimbabwe 231......Page 240 Rubin, Robert 202......Page 211 Standard Chartered bank 30......Page 39 Thailand 19......Page 28 and right-wing ideas 92......Page 101 94......Page 103 Upjohn 69......Page 78 publications 209......Page 218 agricultural 218......Page 227 107......Page 116 van der Pijl, Kees 165......Page 174 World Trade Organisation [WTO] 37......Page 46 settler capital 5......Page 14 black workers 20......Page 29 Perm building society 59......Page 68 deracialisation 61......Page 70 and UF policies 129......Page 138 Stocks & Stocks 139......Page 148 Community Reinvestment Act 141......Page 150 Scramble for Africa 197......Page 206 Women's Investment Portfolio 46......Page 55 164-6......Page 173 221......Page 230 34-5......Page 43 Servcon 146......Page 155 Usury Act 31......Page 40 working-class expectations 71......Page 80 homeownership 28......Page 37 Zuma, Jacob 224......Page 233 Cachalia, Firoz 245-6......Page 254 projections 79......Page 88 and white interests 184......Page 193 185......Page 194 bond boycotts 132......Page 141 London School of Economics 181......Page 190 193-4......Page 202 and overaccumulation 8-11......Page 17 South African Institute of Race Relations 40......Page 49 cashew processing industry 228......Page 237 Tobin, James 210......Page 219 229-31......Page 238 New International Economic Order 206......Page 215 Cheru, Fantu 233-4......Page 242 Johnson, R.W. 174......Page 183 Mau Mau rebellion 172......Page 181 Lee, Kew Sik 168......Page 177 42......Page 51 111......Page 120 Transitional National Development Trust 102......Page 111 101......Page 110 217......Page 226 tourism 220......Page 229 and bond boycotts 135......Page 144 white farmers 108......Page 117 Vlok, Adriaan 133......Page 142 Commission on Development Finance 137-8......Page 146 National Urban Reconstruction and Housing Agency 147......Page 156 Pillay, Vella 75-6......Page 84 stability 80......Page 89 zero-based budgeting 99......Page 108 and revolution 64......Page 73 in cabinet 225......Page 234 managed healthcare 183......Page 192 Thompson, Julian Ogilvie 27......Page 36 Tshwete, Steve 222......Page 231 new 207-11......Page 216 Telkom 81......Page 90 sport and recreation 116......Page 125 social market economy 128......Page 137 and housing policy 126-7......Page 135 22......Page 31 73......Page 82 68......Page 77 militancy 23......Page 32 women's movement 54......Page 63 need for activism 85......Page 94 Tambo, Oliver 76......Page 85 Stellenbosch Bureau for Economic Research 77-8......Page 86 and overaccumulation 10......Page 19 Sisulu, Zwelakhe 44......Page 53 reproductive rights 95......Page 104 lifeline tariffs 113......Page 122 51......Page 60 156......Page 165 Lopez, Carlos 186......Page 195 trade unionism 67......Page 76 rates, subsidised by blacks 103......Page 112 supporting oppression 158-9......Page 167 Sachs, Jeffrey 204......Page 213 140......Page 149 urban land taxes 62......Page 71 and IMF 179......Page 188 Strauss, Conrad 109......Page 118 Knowledge Bank 205......Page 214 241-2......Page 250 11......Page 20 success and failure of 162-3......Page 171 Multilateral Agreement on Investment 208......Page 217 200......Page 209 and debt reduction 227......Page 236 Smit, Dan 130......Page 139 Suharto 203......Page 212 Turok, Ben 39......Page 48 Zambian Consolidated Copper Mines 234......Page 243 198......Page 207 and financial crisis 212......Page 221 Ralph Nader networks 163......Page 172 resistance to 191......Page 200 Gramsci, A. 50......Page 59 Witwatersrand, University of the 7......Page 16 119......Page 128 failure of 124-5......Page 133 bond boycotts 142......Page 151 public works programmes 110......Page 119 149......Page 158 public housing programmes 123......Page 132 Lesotho Highlands Water Project 159......Page 168 van Tonder, Robert 178......Page 187 opposition to 240-1......Page 249 and IMF riots 170......Page 179 trade, international 38......Page 47 lowering 33-4......Page 42 trade policy reform 66......Page 75 technology revolution 215......Page 224 squatters' rights 91......Page 100 Racki, Jeff 161......Page 170 economic history 17......Page 26 implementation of 104......Page 113 cutting services to 105-6......Page 114 in local government 117......Page 126 239-42......Page 248 alliance with ANC 246......Page 255 187......Page 196 100......Page 109 on anarchy 223......Page 232 and loan repayment 177......Page 186 143......Page 152 148......Page 157 and Gear 190......Page 199 and internationalism 250......Page 259 Sunter, Clem 57......Page 66 136......Page 145 Paths to Economic Growth 175......Page 184 Tsvangirai, Morgan 230......Page 239 implementation of 35......Page 44 populist developmentalism 96-7......Page 105 public works programmes 115......Page 124 spin-control 182-3......Page 191 Record of Understanding 145-6......Page 154 Waterman, Peter 248......Page 257 236......Page 245 Structural Adjustment Programmes 188......Page 197 global 247......Page 256 Wade, Robert 242......Page 251 Annotation Written by a leading critic of the current South African government, The Elite Transition is the first study of post-apartheid South Africa to examine in detail the compromises that have been, and continue to be, made between the past and present powers. Basing his analysis on extensive documentation, Patrick Bond focuses on how such compromises have come about and assesses whether they can actually lead to meaningful liberation for the mass of South Africans. Bond covers a range of socioeconomic continuities from old to new South Africa, highlighting the reasons for the transition's "development" failure and drawing on cases studies around key issues, including social contracts, black economic empowerment, housing, and corporate power. Dr. Bond explores the notion, widespread among many observers, that progressive policy making in South Africa is being compromised by the growth of a new petty bourgeoisie and ruling elite, and assesses the view that, as the speed of change begins to slow down, the official policy is increasingly one of lower expectations. While mainstream commentators offer little more than naive expectations of neocol In Elite Transition, Patrick Bond examines the economic and social compromises that have been, and are being, made between the past and present powers in South Africa. A former adviser to the ANC, Bond investigates how groups such as the ANC went from being a force of liberation for all people to a vehicle now perceived as serving the economic interests of an elite few. Bond covers a range of socioeconomic factors under both the old and new South Africa, highlighting the reasons for the transition's 'development' failure and drawing on case studies on key issues: social contracts, black economic empowerment, housing and corporate power. He explores the idea that progressive policymaking is being compromised by the new petit bourgeoisie and ruling elite, and assesses the view that, as change slows down, official policy is increasingly one of lower expectations