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To what extent does the DTI 'reward' and 'discipline' firms for performance and non-perfomance in target sectors? Industrial policy in South Africa's quest for a developmental state 1994-2013

Research Report for the Degree of Master of Arts in Political Studies
Graduate School for Humanities and Social Science
University of the Witwatersrand
Submitted: March, 2015 / This dissertation delves into the contested post-1994 transition to deliver economic
justice and development in South Africa, particularly the country’s more recent quest
to emulate the interventionist economic strategies successfully implemented in South
East Asia. It follows from the governing African National Congress (ANC) being one
among a few governments that have explicitly committed themselves to building a
developmental state. Among some of its intentions, such a state aims to alter market
incentives, reduce risks, offer entrepreneurial visions and manage conflicts.
Specifically, the research study examines the role of industrial sector planning in
South Africa as a component of a developmental state. In the 20th century East Asian
developmental states, also known as early generation developmental states, such
selective industrial policy was characterised by close ties between government and
business that facilitated the sharing of information. These countries – Japan, South
Korea, Taiwan, Hong Kong and Singapore - were also distinguishable by the ability
of the state to “discipline” capital through treating incentives, not as “gifts” but as
enforceable performance contracts.
The paper is split into three parts. Part 1 looks at the origins and evolution of the
concept of a developmental state, along with key elements of such a state and their
applicability to South Africa. Part 2 traces South Africa’s association with industrial
sector planning, from the Jan Smuts era, through Hendrik Verwoerd until the Jacob
Zuma administration. Part 3 is a case study that examines two particular sectors, the
automotive industry and the business process outsourcing (BPO) sector (consisting of
offshore call centres and related activities) to gauge the level of corporatism, along the
state’s ability or desire to “discipline” or “reward” companies in pursuit of its
industrialisation goals.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/19855
Date01 March 2016
CreatorsJohwa, Wilson
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Formatapplication/pdf, application/pdf

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