This thesis explores the tensions between nation building and globalisation in relation to state-sponsored visual arts projects, focusing on the Biennale project of the Greater Johannesburg Metropolitan Council (GJMC). It explores the extent to which this project - aimed initially at internationalising and then globalising South Africa’s art world following the demise of apartheid in 1994 - was compatible with key nation building objectives for state funding of the arts, captured imperfectly in the country’s Reconstruction and Development Programme (RDP). It is found that the Biennale project was largely not compatible with the RDP’s objectives for state funding, namely to promote national unity while respecting the country’s cultural diversity, redress imbalances of the past in access to the arts, and promote culture as a component of South Africa’s development, in spite of the GJMC’s statements to the contrary. Rather the Johannesburg Biennale reproduced the dialectic of economic inclusion and exclusion endemic to the political project of globalisation, leading to the creation of economic and artistic ‘insiders’ and ‘outsiders’ akin to the ‘First World’ and ‘Third World’ divide that the RDP warned against in its principle on nation-building, and proved to be an inappropriate use of state resources given the divided nature of the South African artworld. Furthermore, the GJMC imported uncritically an exhibition form associated with the discourse of internationalisation in the first Biennale, and then globalisation in the second, from other Biennales, based on contestable theoretical positions on nationalism and globalisation. This they did in an attempt to address a growing financial crisis in the city by using a ‘one size fit all’ set of policy prescriptions falling under the rubric of neo-liberalism, including culture-led methods of enhancing a city’s global status to attract foreign revenue. In particular, the Biennale did not learn the lesson that the shift in focus in other Biennales from internationalisation to globalisation, was also accompanied by growing discontent in these countries about the elitist nature of these events. I also consider whether it is possible to devise an alternative Biennale project that uses international contact to unite the South African artworld, rather than dividing it.