Structural Transformation in South Africa: Moving Towards a Smart, Open Economy for All

Bell, Jason; Goga, Sumayya; Mondliwa, Pamela; Roberts, Simon

doi:10.2139/ssrn.3269732

Cited by 17 publications

(28 citation statements)

References 74 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Rather, in South Africa's case, its economic development has been marred by a fragmentation of the State and the agents within it since the demise of the apartheid regime and more recently, since 2008. The vertical fragmentation of the institutional power within the South African State, and more specifically, the African National Congress, the ruling party in South African since 1994, has come as a result of competition for extractive rents from local and national levels of government and in State‐owned corporations (Bell, Goga, Mondliwa, & Roberts, 2018).…”

Section: Manifestations Of Power Influencing Supply Chain Developmentmentioning

confidence: 99%

Power and supply chain development in the South African and Thai automotive industries: What lessons can be learnt?

Bell

Monaco

2021

J of Intl Development

View full text Add to dashboard Cite

In today's highly globalised, increasingly interlinked and extremely competitive auto industry, it is important to understand how some countries succeed in adopting the latest technologies while others are left behind. The creation of a competitive auto industry requires a deep supply chain. One that can compete in the global automotive space and develop and apply technologies as well as penetrate niche markets. Building on comparative research, this article seeks to understand the factors and power relations that led to the deepening of the Thai auto sector, specifically of its automotive component manufacturers, and how South Africa can learn from it.

show abstract

Section: Manifestations Of Power Influencing Supply Chain Developmentmentioning

confidence: 99%

Power and supply chain development in the South African and Thai automotive industries: What lessons can be learnt?

Bell

Monaco

2021

J of Intl Development

View full text Add to dashboard Cite

show abstract

“…The political settlements underlying South Africa's structural change dynamics can be observed by reflecting on the conflicts over value capture in the industrial groupings that form the core of the economy, which have been analysed from different perspectives in the book. These include metals and machinery, chemicals and plastic products, food and beverages,1 fruit, and automotive industries (Bell et al, 2018; and Chapter 1). The ongoing better performance of upstream resource-based industries compared with the more diversified downstream sub-sectors, into which these resource-based basic products are inputs, is reflected in the studies of metals and machinery, and chemicals and plastic products (Chapters 3 and 4).…”

Section: Structural Transformation In South Africa: a Review Of Industry Experiencesmentioning

confidence: 99%

“…The final negotiated economic policy focused on reassurances to local and international business, and the developmental state ideas were abandoned. Subsequent assessments of economic performance found strong path dependency effects, with the benefits of trade liberalization being realized by those firms that were already internationally competitive in 1994 (Aghion et al, 2013;Bell et al, 2018;Mondliwa et al, 2021). Industrial financing, including by development finance institutions, continued to flow towards the upstream industries (Black and Roberts, 2009).…”

Section: The 1994 Compromises: a Political Settlement To End Apartheidmentioning

confidence: 99%

“…The slow progress of transformation of the industrial structure is reflected in South Africa's undiversified exports. Mineral and resource-based industries continue to dominate the export basket-accounting for approximately 60 per cent of merchandise exports in 2019-and South Africa is thus missing out on the gains from international integration in improved competitiveness and 'learning through exporting' in diversified manufacturing industries (Bell et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Towards a New Industrial Policy for Structural Transformation

Andreoni¹,

Mondliwa²,

Roberts³

et al. 2021

Structural Transformation in South Africa

View full text Add to dashboard Cite

The South African case provides important insights into the challenges facing middle-income countries as they attempt to build productive capabilities to drive their structural transformation. Despite South Africa having opened up and integrated with the global economy, liberalizing trade and financial markets, it has remained stuck in relatively lower-productivity activities with weak diversification of exports. There continues to be a strong path dependency where markets are structured and shaped by previous investment decisions, state interventions, and entrenched rentieristic interests. Five important lessons emerge. First, premature deindustrialization needs to be arrested and reversed, including the growth and upgrading of the manufacturing sector. Second, the technological changes under way with the digitalization of economic activities mean that developing an industrial ecosystem of firms with effective links to public institutions is critical. Third, inclusive industrialization depends on achieving structural change and dismantling barriers to entry to allow a new system of accumulation to emerge. Fourth, structural transformation depends on a country’s political settlement, specifically whether coalitions of interests that support the organization of industries for long-term investment in capabilities hold sway. Fifth, purposive and coordinated industrial policies are central to achieving these goals and improving the country’s productivity and competitiveness. These are applied to identify key considerations for industrial strategy in South Africa, including confronting concentration and the urgent implications of the climate crisis, to ‘build back better’ from the Covid-19 pandemic.

show abstract

“…Notably, from elements of the black business community frustrated by the perceived lack of opportunities afforded by a highly consolidated private sector, the narrow range of actors benefiting from conventional BEE ownership transfer processes, and the instrumental approaches to BEE compliance from white businesses (von Holdt, 2018;Bell et al, 2018). Leaked emails revealed Zwane's CV to have been sent to the Guptas prior to his appointment, while his predecessor, Ngoako Ramatlhodi, claimed he was sacked shortly after refusing to cancel Glencore mining licences to expedite the sale (Sole & Comrie 2017).…”

Section: Subsequent Negotiations Between the Dmr Thementioning

confidence: 99%

Black economic empowerment policy and state–business relations in South Africa: the case of mining

Bowman

2019

Review of African Political Economy

View full text Add to dashboard Cite

The article analyses contestation of black economic empowerment ownership transfer policies in South Africa’s mining industry. Using case study material from platinum, the article examines the transition between the first Mining Charter of 2004 and the third Mining Charter of 2018. It argues that the inherent fragilities of this financialised redistribution mechanism have generated poor redistributive outcomes and achieved limited progress in the formation of a black capitalist class aligning political and economic power. This has contributed to increased factional and ideological contestation over the pace and method of economic transformation, and a deterioration in relations between the state and big business in mining.

show abstract

Structural Transformation in South Africa: Moving Towards a Smart, Open Economy for All

Cited by 17 publications

References 74 publications

Power and supply chain development in the South African and Thai automotive industries: What lessons can be learnt?

Power and supply chain development in the South African and Thai automotive industries: What lessons can be learnt?

Towards a New Industrial Policy for Structural Transformation

Black economic empowerment policy and state–business relations in South Africa: the case of mining

Contact Info

Product

Resources

About