White Monopoly Capital’: Who Owns South Africa?," South African Labour Bulletin, Volume 39, Number 3, Pp
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Lucien van der Walt, 2015, "Beyond ‘White Monopoly Capital’: Who owns South Africa?," South African Labour Bulletin, volume 39, number 3, pp. 39-42. ON POLITICS AND ECONOMICS ON POLITICS Beyond ‘white monopoly capital’ Who owns South Africa? The debate on ‘white monopoly capital’ has some blind spots as it omits the role of the state in ownership and control of the means of production. The state also controls the means of coercion and administration, writes Lucien van der Walt. outh Africa today is a morass political economy associated with or the fact that almost every single of wretched inequality, racial the 1990s transition – notably, the cabinet minister is a shareholder in Stensions and class conflicts. denationalisation of the economy one or more companies. It is not held Despite real gains in basic rights with massively expanded foreign together by the corruption of a few and welfare, and the abolition of ownership, and a growing black people, or by incorrect programmes, apartheid laws, its transition remains private corporate leadership – and not by poor state leadership, not limited and frustrating, 20 years on. also rests upon a very weak analysis even by the ANC, all of which can be Nelson Mandela’s South Africa is of the state apparatus – both in terms changed. profoundly better than P.W. Botha’s, of its class character and economic The state can no more be wielded but is no paradise; and the legacy of power. Claims that blacks have against private capitalists than one the past remains everywhere in the political power, not economic power, brick in a wall can fight another present. or that white private corporations – and capitalism and the state can For many in the unions, Marxist, have a stranglehold over the economy, no more lose their character of social democratic and nationalist remove the black economic and exploitation and domination than left, the blame lies primarily with political elite from the picture, erasing a wall can become an aeroplane. ‘white monopoly capital’, i.e. the giant it from strategic considerations. Efforts to capture the state can, at apartheid-and segregation-era private Existing alongside vast private most, lead to a few people, mainly corporations that remain central. companies – not all of which fit the party leaders, joining the ruling class These are seen as the main obstacle label ‘white monopoly capital’ is – nothing more. The strategic task to radical change, and the African another massive economic force, the must then become one of building National Congress (ANC)-led post- state apparatus – the biggest single a movement outside and against apartheid state’s main failure is seen employer, landowner, income earning the private and state corporations as failing to tackle ‘white monopoly institution, and by any reasonable and the state more generally, by the capital’. The key strategic perspective measure, the dominant ‘monopoly broad working class (including the then becomes changing the state, the capital’ in electricity, rail, roads, unemployed), which is both victim better to intervene, whether through forestry, television, sectors of banking, and potential destroyer of the system. higher taxes, or a ‘developmental higher education and elsewhere. The black elite, whether in the state’, more black capitalists, some South Africa, I argue, is controlled state, or in the private sector, is an nationalisation etc. This is really what by a single ruling class, divided into active part of this system, and its lies at the heart of calls for a ‘second two sectors: a (largely white) private beneficiary – not a bought set of transition’ (by sectors of the ANC sector elite, and a (largely black) state black faces, not a ‘petty bourgeoisie’, and the Congress of South African elite. This is united at both a deep not a ‘comprador’ layer, but a Trade Unions (Cosatu)), or ‘socialism’ structural level, through common powerful sector of the ruling class, (by sectors of the National Union interests and interdependence, and in its own right, with its own agenda. of Metalworkers of South Africa at a more conjunctural level, by It cannot form a reliable ally of the (Numsa), the United Front (UF) and current neo-liberal programmes and working class, partly because its Economic Freedom Fighters (EFF). alliances, among which note can be class interests and very existence But this analysis and strategy, I made of the Growth Employment and rest upon the ongoing subjugation argue, ignores major changes in the Redistribution (Gear) Strategy (1996) of the working class, partly because June/July 2015 39 it is part of an elite pact of class Anglo sold many of its holdings The ANC continued these, but also domination with private capital, and in banks and retail, in favour of a opened the economic gates on a partly because its own agenda – mining focus. They also globalised scale unseen since the early 1920s. survival and expansion – must clash aggressively. For example, Anglo It became more attractive to invest – with working-class interests. moved its main share listing from the sometimes, some would say, primarily, JSE, to the London Stock Exchange for short-term profits and speculation CHANGES IN CAPITAL STRUCTURE in 1999. Its single biggest current – but it also became easier: notably, The left and labour focus on ‘white project is Brazil, not South Africa. from 2004, foreign companies could ON POLITICS AND ECONOMICS ON POLITICS monopoly capital’ has the very real list directly on the JSE. merit of revealing both continuities DENATIONALISATION A major effect is that while South with the past, and part of the The second is that the South African African companies controlled 83.1% present problem – but it sidesteps economy has been progressively in 1987, in 2012, foreign investors massive changes in the private sector, ‘denationalised’ from the 1990s. The held 37% of all shares, and 43% of including denationalisation and Black Big Four that dominated the JSE were industrial shares, on the JSE writes Economic Empowerment (BEE) and all South African-based companies, Gillian Jones. While this ‘foreign’ ignores the economic size and power albeit owned by white South Africans. ownership does include some ‘off- of the state sector. The onset of neo-liberalism in the late shored’ locally-based capital, i.e. And, certainly, it is correct that years of apartheid under the National South African capital, reentering via ‘white monopoly capital’ has played a Party (NP) (from 1979) and the channels elsewhere, the change is central role, both past and present. By acceleration of neo-liberalism under significant. 1987, over 83.1% of all shares on the the ANC (from 1993) changed the So, while 10 companies control Johannesburg Stock Exchange (JSE), picture. 50% of JSE capitalisation, a substantial now the Johannesburg Securities Tough capital controls that part of this ownership is not Exchange were owned by four giant previously made it almost impossible traditional ‘white monopoly capital’, companies, with Anglo-American for South African companies to move but also includes off-shored semi- (despite the name, a South African most of their assets outside the South African firms, South African- company) owning 60.1%, followed by country despite political turbulence based firms, and other foreign firms, Sanlam at 10.7%, argues Cosatu. With and economic decline, writes David argues Roger Southall. the 1990s transition, the Big Four Kaplan, forced ‘white monopoly were not subject to any penalties, capital’ to develop into giant BEE AND STATE CAPITAL were largely exempted from the conglomerates within the country. A third change is that, despite Truth and Reconciliation Commission Despite limited exports of capital (white) private corporate hesitancy (TRC), and benefited massively from – Anglo had more investments in on BEE, around a quarter of JSE- post-apartheid economic policies the USA than Unilever, according to listed company directorships are and state contracts (for example, one estimate, argues Duncan Innes held by people of colour (‘black’ construction in preparation for the – the strict capital controls meant in South African law) according to 2010 World Cup). Anglo evolved from being a mining M. Sibanyoni writing in the City In all parts of the private sector house to having massive holdings in Press, with the proportion of senior of the economy, the pattern of a agriculture, industry, retail and media. managers in the private sector at few giant companies, persists: one The existing monopoly structure in 32.5% (2008), adds Southall. effect is persistent price-fixing by mining (and state industry) was now Now, directorships give real cartels, exposed in sectors ranging systematised widely. control of means of production, as from concrete to bread, by the It was ANC-led liberalisation of well as economic ‘ownership’, i.e. country’s Competition Commission capital and other controls that the ability to make key decisions over recent years. These large private allowed Anglo to relocate its primary on use, even if the directors are not firms – mainly rooted in the pre-1994 listing to London in the 1990s. Looser themselves majority shareholders. period, historically white-owned and regulations were part of growing Given that 37 to 43% of JSE dominated, with a corporate culture efforts to position South Africa as shares are not owned by South marked by the apartheid era – may an attractive ‘emerging market’, and Africans, white or black, it is not correctly still be termed ‘white growing global flows of foreign entirely obvious how much this monopoly capital.’ investment have seen the JSE change. ‘black’ control is in South African Several developments, however, The NP had pioneered neo-liberal companies, although a substantial complicate the picture. The first is measures in the 1980s, mainly proportion must be, since foreign that in the 1990s ‘white monopoly through austerity, sales of major state investors are exempted from BEE capital’ generally ‘unbundled’, i.e.