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

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  • Alan Hirsch
  • Brian Levy

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.

Suggested Citation

  • Alan Hirsch & Brian Levy, 2018. "Elaborate scaffolding, weak foundations: Business–government relations and economic reform in democratic South Africa," Global Development Institute Working Paper Series esid-105-18, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:esid-105-18
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    File URL: http://www.effective-states.org/wp-content/uploads/2018/07/esid_wp_105_hirsch_levy.pdf
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    Cited by:

    1. Christopher Loewald & Nic Spearman Andreas Wrgtter, 2023. "Less sacrifice from collective to competitive price coordination in the South African economy," Working Papers 11049, South African Reserve Bank.

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