Postcolonial Transitions in Africa: Decolonization in West Africa and Present Day South Africa

Abstract

Black Economic Empowerment is a highly debated issue in contemporary South Africa. Yet few South Africans realize that they are following a postcolonial trajectory already experienced by other countries. This paper presents a case study of British firms during decolonization in Ghana and Nigeria in the 1950s and 1960s, which saw a parallel development in business and society to that which occurred in South Africa in the 1990s and 2000s. Despite fundamental differences between these states, all have had to empower a majority of black citizens who had previously suffered discrimination on the basis of race. The paper employs concepts from social capital theory to show the process of postcolonial transition in African economies has been more politically and socially disruptive than empowerment in Western countries. Historical research contributes to our understanding of the nature institutional shocks in emerging economies.

‘Why Even Bother Trying?’ Examining Discouragement among Racial‐Minority Entrepreneurs

“…Mixed embeddedness theory relates to earlier work that emphasized co‐ethnic social relationships and structures as primary determinants of opportunity structures (Waldinger et al, ), but equally insists that key mechanisms such as laws, regulations, institutions, and practices establish parameters within which racial‐minority entrepreneurs must act (Barrett et al, ). Indeed, evidence that broader institutional forces influence racial minorities’ entrepreneurial actions and behaviours is found in recent work documenting the manner in which Africans modified their roles in the workforce as South Africa became decolonized (Decker, ). Further, a series of studies based in the United Kingdom also reveals the important impact that the general political climate and specific policy initiatives have had on influencing the nature of racial‐minority entrepreneurial behaviour and success (see Barrett et al, ; Carter et al, ; Ram and Smallbone, ).…”

“…For instance, Venkatesh () recounts how the belief that ‘mainstream’ employment opportunities offered limited growth potential led African Americans to create a booming underground economy, Chicago's ‘Black Metropolis’, in order to provide for themselves. As such, racial minorities have traditionally been, and continue to be, drawn to entrepreneurship because it is perceived as one of the most viable pathways to upward mobility (see Bates, ; Clark and Drinkwater, ; Decker, ; Heilman and Chen, ; Jones et al, ; Kim et al, ).…”

New Research Directions in the Institution-Based View

“…Only approximately one percent of land in Africa is formally registered with governments (Easterly, 2008, p. 97). Thus, the institutional transitions are essentially a movement from informal property rights to formal property rights that are supported by government authorities with thirdparty enforcement powers (Decker, 2010;Peng, 2003). While research on Asia has often noted that the Asian propensity to use informal interpersonal relationships to get things done is largely due to a lack of an effective formal property rights system (Peng & Luo, 2000;Puffer, McCarthy, & Peng, 2013), it is plausible to suggest that, relative to Asians, Africans may have a higher propensity to rely on informal interpersonal relationships because of their agricultural environment featuring informal land titles and property rights, in which most of them have some experience (Acquaah, 2007).…”

Guest Editors' Introduction

“…In ‘Postcolonial Transitions in Africa: Decolonization in West Africa and Present Day South Africa’, Stephanie Decker employs a case study of British firms during decolonization in Ghana and Nigeria in the 1950s and 1960s to draw broader implications for our understanding of several themes central to the development of social capital, including empowerment and diversity (Decker, 2010). She highlights the important complexities in economic development associated with empowering majorities of the population, as was the case in West Africa, noting its potential to induce greater inequality within the empowered group.…”