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South Africa

South Africa

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South Africa

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  1. South Africa • Background • Foundations of Apartheid • Rise of Opposition • Sanctioning of the State • Transition to Democracy • Legacies of Apartheid • Implementing Reconstruction and Dev. Prgm • Current Situation

  2. Background • First Europeans – French and Dutch settlers • Known as “Boers” or farmers in Afrikaans • Fled religious persecution in mid-17 century • Dutch East India Co. in Table bay • Southern Cape land is rich and fertile • Natives: Khoikhoi (SW) & Xhosa (East) • Constant fights; Europeans with guns

  3. Background (cont.) • British came for the location – refueling • Est. British East India Company • 1806, captured Cape Peninsula from Dutch • 1867, diamond found in Vaal River • Cecil Rhodes built international diamond cartel • Gold found less than 20 years later • By 1900, gold and diamonds made up 60% of export

  4. Background (cont.) • By 1911, gold mines account of 20% of economy and employed 215, 000 people • Tension bet. British and Dutch resulted in a full-scale Boer War until 1910. • British won decisively and Union of SA became a self-governing dominion of British Commonwealth.

  5. Foundations of Apartheid • 1909 Constitution – SA is a segregated democracy; only whites could vote • Bet. 1910-1948, SA ruled by relatively liberal group dominated by English speakers called United Party (UP) • White SA get majority of benefits • Blacks work in mining and domestic

  6. Foundations of Apartheid (cont.) • 1948, predominantly Afrikaner National Party (NP) seize control from UP • Imposed “Apartheid” or “Apartness” in Afrikaans; shape history for next 50 years • 4 racial groups: whites, coloreds (mixed race), Indian, Africans • Segregation; 1913 National Land Act – illegal for Blacks to purchase land outside designated areas

  7. Foundations of Apartheid (cont.) • Hendrik Verwoerd, a “philosopher” , “.. gives the Native an opportunity to develop what is his own, so he can have pride and self-respect as a Native, instead of being continually humiliated as a failed and imitation white” • Many Acts enacted to enforce segregation • Blacks resettled to disguised “homelands” • Required to carry passports and travelled hours each day on cramped buses

  8. Foundations of Apartheid (cont.) • 1912, 2 years after country formation, a small group of Blacks formed SA Native National Congress (SANCC) devoted to advancement of native population • Led by missionary-educated lawyers • SANCC later became African National Congress (ANC) • Later ANC is joined by colored African Political Organization, SA Indian Congress, and SA Communist Party

  9. Rise of Opposition (cont.) • ANC leaders -Oliver Tambo, Walter Sisulu, & Nelson Mandela- supported a large scale passive resistance campaign in 1952; adherence to non-violence • 1955, ANC adopted Freedom Charter – “SA belongs to all who live in it, black or white, …. no government can justly claimed authority unless it is based on the will of the people” • NP track Mandela and Tambo, who were practicing law together in Johannesburg

  10. Rise of Opposition (cont.) • In 1963, 8 ANC members were convicted of high treason and sentenced to life imprisonment • Mandela spend 27 years in prison • Notable personalities include: • Helen Suzman, white professor who was sole member of liberal Progressive Party in Parliament • Desmond Tutu: Anglican Archbishop of Cape Town • Stephen Biko, founder of Black Consciousness Movement, died in police custody in 1977

  11. Rise of Opposition (cont.) • Sharpeville Massacre: police shot and killed 69 peaceful demonstrators led some conservatives to advocate violence • 1976, security forces shot and killed to children in Soweto igniting a firestorm that led to 500-1000 deaths. • In the 70s, gold prices fell and oil prices hiked hitting SA hard; mining industry hit hard • By 1978, 5.1% of GDP or 21% of budget devoted to defense. SA was isolated.

  12. Sanctioning the State • Chase Manhattan Bank refused to roll out SA loans • Sullivan Principles, a code of conduct for firms hoping to advance human rights and equal opportunity in SA • 1986, over Pres. Reagan’s veto, passed Comprehensive Anti-Apartheid Act, boycotting nearly all US commerce with SA • 1989, SA Pres. Botha suffered debilitating stroke. • F. W. de Klerk, president of NP took over.

  13. Transition to Democracy • Before Botha’s stroke, he started covert meetings with Mandela. Bans on ANC lifted in 1990. • de Klerk and Mandela were aligned in short-term aims: saw political violence boiling and were determined to prevent either end of political spectrum from imposing its wished on the country • Agreed to conduct negotiating framework – the Convention for Democratic SA (CODESA)

  14. Transition to Democracy (cont.) • Nov. 1993, Population Registration Act ended; independent homelands reintegrated • Jan. 1994, all white parliament voted interim constitution establishing SA as a multicultural nation granting citizenship to non-whites. • 1994, SA electorate voted choosing a parliament based on proportional representation and electing a Government of National Unity (GNU). • GNU committed to “power sharing” rather than “winner take all”. Any party that won 5% (20%) of national vote was guaranteed representation in the cabinet (deputy presidency).

  15. Transition to Democracy (cont.) • ANC got 63% of vote in April 1994 election • Truth and Reconciliation Commission in 1995 • ANC moved to deliver campaign promise of change and redistribution with Reconstruction and Development Program (RDP) • Started with R2.5B in 1995 and R10B 1996. • Est. business plan and build houses for millions of SA. Pledge to build 1 million houses by 1999 and electrification of another 2.5 million homes. • Slow implementation. Value of Rand collapsed & President Mandela ended RDP in March, 1996.

  16. Transition to Democracy (cont.) • June 1996, a new macroeconomic strategy called Growth, Employment, and Redistribution (GEAR) • Obj.: 6% growth by 2000, 1.3 million jobs outside agriculture, fiscal deficit of 3% of GDP, privatization, and tariff reduction • Received tremendous opposition from all sides. • 1999, Thabo Mbeki became President of SA.

  17. Legacies of Apartheid • 6 million SA blacks are unemployed • 9 million considered destitute • Over 10 million blacks had no access to running water • 23 million had no electricity • 60% black adults never attended school • Infant mortality: 7/1000 (whites), 80/1000 (blacks)

  18. Key Indicators (1/23/07)From Economist Intelligence Unit (Source:Country data)

  19. Source • Remaking the Rainbow Nation: South Africa 2002, Rawi Abdelal, Debora Spar, and Katherine E. Cousins, Harvard Business School.