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Patrick Bond Elite Transition From Apartheid to Neoliberalism in South Africa P University of Natal Press Pluto Press Pietermaritzburg South Africa LONDON • STERLING, VIRGINIA First published 2000 by Pluto Press 345 Archway Road, London N6 5AA and 22883 Quicksilver Drive, Sterling, VA 20166–2012, USA Published in South Africa 2000 by University of Natal Press Private Bag X01. Scottsville 3209, South Africa Copyright © Patrick Bond 2000 The right of Patrick Bond to be identified as the author of this work has been asserted by him in accordance with the Copyright, Design and Patents Act 1988 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN 0 7453 1024 9 hbk Pluto edition ISBN 0 7453 1023 0 pbk Pluto edition ISBN 0 86980 971 7 South African edition Library of Congress Cataloging in Publication Data Bond, Patrick. Elite transition : from apartheid to neoliberalism in South Africa/ Patrick Bond. p. cm. Includes bibliographical references. ISBN 0–7453–1024–9 1. Elite (Social sciences)—South Africa. 2. South Africa—Economic conditions—1991– 3. South Africa—Politics and government—1994– I. Title. HN801.Z9 E427 2000 305.5'2'0968—dc21 99–048854 Disclaimer: Some images in the original version of this book are not available for inclusion in the eBook. Designed and produced for the publisher by Chase Production Services, Chadlington, OX7 3LN Typeset from disk by Stanford DTP Services, Northampton Printed in the EU by TJ International, Padstow Contents List of Acronyms and Abbreviations vi Introduction: Dissecting South Africa’s Transition 1 PART I: POWER AND ECONOMIC DISCOURSES 1. Neoliberal Economic Constraints on Liberation 15 2. Social Contract Scenarios 53 PART II: THE ASCENDANCY OF NEOLIBERAL SOCIAL POLICY 3. Rumours, Dreams and Promises 89 4. The Housing Question 122 PART III: INTERNATIONAL LESSONS 5. The World Bank as ‘Knowledge Bank’ (sic) 155 6. Beyond Neoliberalism? South Africa and Global Economic Crisis 192 Notes and References 253 Index 303 List of Acronyms and Abbreviations ABSA Amalgamated Banks of South Africa AC African Communist ANC African National Congress BEE Black Economic Empowerment Cansa Campaign Against Neoliberalism in South Africa CBM Consultative Business Movement CBO Community-Based Organisation CIA Central Intelligence Agency CoNGO Co-opted Non-Governmental Organisation Cosatu Congress of South African Trade Unions DBSA Development Bank of Southern Africa DDA Department of Development Aid DEP Department of Economic Planning (ANC) Fabcos Foundation for African Business and Consumer Services FM Financial Mail Frelimo Front for the Liberation of Mozambique GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product Gear Growth, Employment and Redistribution HIPC Highly-Indebted Poor Countries HSRC Human Sciences Research Council HWP Housing White Paper IDT Independent Development Trust IFC International Finance Corporation IFP Inkatha Freedom Party LIST OF ACRONYMS AND ABBREVIATIONS/vii IMF International Monetary Fund Iscor Iron and Steel Corporation ISP Industrial Strategy Project JCI Johannesburg Consolidated Investments JSE Johannesburg Stock Exchange KP Conservative Party LAPC Land and Agricultural Policy Centre LGTA Local Government Transition Act LTCM Long-Term Capital Management MDC Movement for Democratic Change MDM Mass Democratic Movement Merg MacroEconomic Research Group Nail New African Investments Ltd NEM Normative Economic Model NGDS National Growth and Development Strategy NGO Non-Governmental Organisation NHF National Housing Forum NIS National Intelligence Service NP National Party Numsa National Union of Metalworkers (South Africa) OECD Organisation for Economic Cooperation and Development PEP Professional Economists Panel PPT Presidential Project Team (Umtata) PR Public Relations R&D Research and Development RDP Reconstruction and Development Programme RDS Rural Development Strategy SAB South African Breweries SACP South African Communist Party SADC Southern African Development Community SAHT South African Housing Trust Sanco South African National Civic Organisation SANDF South African National Defence Force Sangoco South African Non-Governmental Organisation Coalition TAU Transvaal Agricultural Union TEC Transitional Executive Committee THEMBA ‘There Must Be an Alternative’ TINA ‘There Is No Alternative’ viii/ELITE TRANSITION UDI Unilateral Declaration of Independence (Rhodesia) UDS Urban Development Strategy UF Urban Foundation UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme WTO World Trade Organisation Introduction Dissecting South Africa’s Transition This book aims to fill some gaps in the literature about South Africa’s late twentieth-century democratisation. There is already an abundance of commentary on the years of liberation struggle and particularly on the period 1990–94 – empiricist accounts, academic tomes, self-serving biographies – and many more narratives have been and are being drafted about the power-sharing arrangements that followed the April 1994 election, as well as the record of the ANC in its first term. Some of these have been penned by progressives and are generally critical of the course the transition has taken thus far. In the development of an extremely rich heritage of thinking and writing about change in South Africa, have the dozen or more serious commentaries from the Left missed or skimmed or perhaps de- emphasised anything that this work can augment? I believe so, namely a radical analytic-theoretic frameworkand some of the most telling details that help explain the transition from a popular-nationalist anti-apartheid project to official neoliberalism – by which is meant adherence to free market economic principles, bolstered by the narrowest practical definition of democracy (not the radical participatory project many ANC cadre had expected) – over an extremely short period of time. It is sometimes remarked that the inexorable journey from a self-reliant, anti-imperialist political- economic philosophy to allegedly ‘home-grown’ structural adjustment that took Zambian, Mozambican/Angolan and Zimbabwean nationalists 25, 15 and 10 years, respectively, was in South Africa 1

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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 c
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Patrick Bond Elite Transition From Apartheid to Neoliberalism in South Africa P University of Natal Press Pluto Press Pietermaritzburg South Africa LONDON • STERLING, VIRGINIA First published 2000 by Pluto Press 345 Archway Road, London N6 5AA and 22883 Quicksilver Drive, Sterling, VA 20166–2012, USA Published in South Africa 2000 by University of Natal Press Private Bag X01. Scottsville 3209, South Africa Copyright © Patrick Bond 2000 The right of Patrick Bond to be identified as the author of this work has been asserted by him in accordance with the Copyright, Design and Patents Act 1988 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN 0 7453 1024 9 hbk Pluto edition ISBN 0 7453 1023 0 pbk Pluto edition ISBN 0 86980 971 7 South African edition Library of Congress Cataloging in Publication Data Bond, Patrick. Elite transition : from apartheid to neoliberalism in South Africa/ Patrick Bond. p. cm. Includes bibliographical references. ISBN 0–7453–1024–9 1. Elite (Social sciences)—South Africa. 2. South Africa—Economic conditions—1991– 3. South Africa—Politics and government—1994– I. Title. HN801.Z9 E427 2000 305.5'2'0968—dc21 99–048854 Disclaimer: Some images in the original version of this book are not available for inclusion in the eBook. Designed and produced for the publisher by Chase Production Services, Chadlington, OX7 3LN Typeset from disk by Stanford DTP Services, Northampton Printed in the EU by TJ International, Padstow Contents List of Acronyms and Abbreviations vi Introduction: Dissecting South Africa’s Transition 1 PART I: POWER AND ECONOMIC DISCOURSES 1. Neoliberal Economic Constraints on Liberation 15 2. Social Contract Scenarios 53 PART II: THE ASCENDANCY OF NEOLIBERAL SOCIAL POLICY 3. Rumours, Dreams and Promises 89 4. The Housing Question 122 PART III: INTERNATIONAL LESSONS 5. The World Bank as ‘Knowledge Bank’ (sic) 155 6. Beyond Neoliberalism? South Africa and Global Economic Crisis 192 Notes and References 253 Index 303 List of Acronyms and Abbreviations ABSA Amalgamated Banks of South Africa AC African Communist ANC African National Congress BEE Black Economic Empowerment Cansa Campaign Against Neoliberalism in South Africa CBM Consultative Business Movement CBO Community-Based Organisation CIA Central Intelligence Agency CoNGO Co-opted Non-Governmental Organisation Cosatu Congress of South African Trade Unions DBSA Development Bank of Southern Africa DDA Department of Development Aid DEP Department of Economic Planning (ANC) Fabcos Foundation for African Business and Consumer Services FM Financial Mail Frelimo Front for the Liberation of Mozambique GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product Gear Growth, Employment and Redistribution HIPC Highly-Indebted Poor Countries HSRC Human Sciences Research Council HWP Housing White Paper IDT Independent Development Trust IFC International Finance Corporation IFP Inkatha Freedom Party LIST OF ACRONYMS AND ABBREVIATIONS/vii IMF International Monetary Fund Iscor Iron and Steel Corporation ISP Industrial Strategy Project JCI Johannesburg Consolidated Investments JSE Johannesburg Stock Exchange KP Conservative Party LAPC Land and Agricultural Policy Centre LGTA Local Government Transition Act LTCM Long-Term Capital Management MDC Movement for Democratic Change MDM Mass Democratic Movement Merg MacroEconomic Research Group Nail New African Investments Ltd NEM Normative Economic Model NGDS National Growth and Development Strategy NGO Non-Governmental Organisation NHF National Housing Forum NIS National Intelligence Service NP National Party Numsa National Union of Metalworkers (South Africa) OECD Organisation for Economic Cooperation and Development PEP Professional Economists Panel PPT Presidential Project Team (Umtata) PR Public Relations R&D Research and Development RDP Reconstruction and Development Programme RDS Rural Development Strategy SAB South African Breweries SACP South African Communist Party SADC Southern African Development Community SAHT South African Housing Trust Sanco South African National Civic Organisation SANDF South African National Defence Force Sangoco South African Non-Governmental Organisation Coalition TAU Transvaal Agricultural Union TEC Transitional Executive Committee THEMBA ‘There Must Be an Alternative’ TINA ‘There Is No Alternative’ viii/ELITE TRANSITION UDI Unilateral Declaration of Independence (Rhodesia) UDS Urban Development Strategy UF Urban Foundation UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme WTO World Trade Organisation Introduction Dissecting South Africa’s Transition This book aims to fill some gaps in the literature about South Africa’s late twentieth-century democratisation. There is already an abundance of commentary on the years of liberation struggle and particularly on the period 1990–94 – empiricist accounts, academic tomes, self-serving biographies – and many more narratives have been and are being drafted about the power-sharing arrangements that followed the April 1994 election, as well as the record of the ANC in its first term. Some of these have been penned by progressives and are generally critical of the course the transition has taken thus far. In the development of an extremely rich heritage of thinking and writing about change in South Africa, have the dozen or more serious commentaries from the Left missed or skimmed or perhaps de- emphasised anything that this work can augment? I believe so, namely a radical analytic-theoretic frameworkand some of the most telling details that help explain the transition from a popular-nationalist anti-apartheid project to official neoliberalism – by which is meant adherence to free market economic principles, bolstered by the narrowest practical definition of democracy (not the radical participatory project many ANC cadre had expected) – over an extremely short period of time. It is sometimes remarked that the inexorable journey from a self-reliant, anti-imperialist political- economic philosophy to allegedly ‘home-grown’ structural adjustment that took Zambian, Mozambican/Angolan and Zimbabwean nationalists 25, 15 and 10 years, respectively, was in South Africa 1

Description:
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 c
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