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Overcoming underdevelopment in South Africa's second economy

Author

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  • Michael Aliber
  • Marie Kirsten
  • Rasigan Maharajh
  • Josephilda Nhlapo-Hlope
  • Oupa Nkoane

Abstract

This paper is a synthesis of the July 2005 Development Report published by the Development Bank of Southern Africa, Human Sciences Research Council and United Nations Development Programme (DBSA, HSRC and UNDP). The Report asks why, if the origins of economic dualism are rooted in the cheap, forced, migrant labour introduced by the mining industry and reinforced during apartheid, does dualism persist under democracy when all the relevant laws and many of the practices of the past have been abolished? The breakdown of apartheid did not immediately translate into improved material conditions for the majority of South Africans: 300 years of colonialism and 50 of internal colonialism had hard-wired a duality into the system. Two worlds, which may be conceptualised as the first and second economies, coexisted: a globally integrated world of production, exchange and consumption, and a constrained world of informality, poverty and marginalisation. This synthesis sheds light on the origin and nature of the 'second economy' metaphor, and suggests solutions.

Suggested Citation

  • Michael Aliber & Marie Kirsten & Rasigan Maharajh & Josephilda Nhlapo-Hlope & Oupa Nkoane, 2006. "Overcoming underdevelopment in South Africa's second economy," Development Southern Africa, Taylor & Francis Journals, vol. 23(1), pages 45-61.
    • Handle: RePEc:taf:deveza:v:23:y:2006:i:1:p:45-61
    DOI: 10.1080/03768350600556356
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    References listed on IDEAS

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    1. Daniela Casale & Colette Muller & Dorrit Posel, 2004. "‘Two Million Net New Jobs': A Reconsideration Of The Rise In Employment In South Africa, 1995–2003," South African Journal of Economics, Economic Society of South Africa, vol. 72(5), pages 978-1002, December.
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    Cited by:

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    3. Helena Maria Martins Lastres, 2017. "Development, innovation, sustainability and policies: Chris Freeman's legacy," Globelics Working Paper Series 2017-02, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
    4. Ejovi Akpojevwe Abafe & Oluwaseun Samuel Oduniyi & Sibongile Sylvia Tekana, 2021. "Quantitative Analysis of Farmers Perception of the Constraints to Sunflower Production: A Transverse Study Approach Using Hierarchical Logistic Model (HLM)," Sustainability, MDPI, vol. 13(23), pages 1-18, December.

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