Elaborate scaffolding, weak foundations:Business–government relations and economic reform in democratic South Africa

This paper explores the evolution of the business–government dimensions of South Africa’s democratic political settlement

• From: Department for International Development
• Published: 4 October 2018

• Country: South Africa
• Document Type: Working Paper
• Theme: Economic Growth, Governance and Conflict
• Authors: Hirsch, A., Levy, B.

Abstract

This paper explores the evolution of the business–government dimensions of South Africa’s democratic political settlement. It details how and why market-based reforms were embraced by both political and economic actors in the 1990s as part of a broader commitment to a rule-bound political settlement. It explores two aspects of the subsequent play of the game: the rise and decline of a ‘corporatist’ elite bargain; and the evolution of initiatives to foster black economic empowerment. Overall, rulebound, disciplining reforms were embraced more readily than pro-active initiatives to build capability. The result has been that South Africa became mired in a combination of economic stagnation and the strengthening over time of forces antithetical to market-based reform.

This work is part of the Effective States and Inclusive Development Research Centre programme

Citation

Hirsch, A. and Levy, B. (2018) Elaborate scaffolding, weak foundations: Business–government relations and economic reform in democratic South Africa. ESID Working Paper No. 105. Manchester, UK: The University of Manchester

Links

Elaborate scaffolding, weak foundations: Business–government relations and economic reform in democratic South Africa

Published 4 October 2018