The ANC, business and development in South Africa
While South Africa’s transition from apartheid to democracy is the go-to case study of an elite political settlement, the economic pact that accompanied it has been overlooked. Before the transition, the ANC had insisted that only nationalisation could undo the socio-economic legacies of apartheid. But this stance was pragmatically discarded in favour of pro-business and liberal market policies to stabilise the economy and attract much needed foreign investment.
This study finds that not only did this result in a stable political transition, but also in political and economic transformation. Once the democratic pact was in place, the economic pact involved the formation of many formal and informal coalitions that sought to undo the economic legacies of apartheid.
Researcher: Jo Ansie van Wyk (University of South Africa)