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Political Economy and Industrialisation in South Africa: a Critique of Structuralist Marxist Analyses of Apartheid and Class Struggle

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Political Economy and Industrialisation in South Africa: a Critique of Structuralist Marxist Analyses of Apartheid and Class Struggle A Thesis Submitted for the Degree of PhD at the University of Warwick Permanent WRAP URL: http://wrap.warwick.ac.uk/80182 Copyright and reuse: This thesis is made available online and is protected by original copyright. Please scroll down to view the document itself. Please refer to the repository record for this item for information to help you to cite it. Our policy information is available from the repository home page. For more information, please contact the WRAP Team at: [email protected] warwick.ac.uk/lib-publications Abstract The core of my thesis is to present a Marxist interpretation of the process of industrialisation in South Africa. I do so with the view that previous discussions on the process of industrialisation and its effects on the South African political economy have tended to obscure class relations in favour of race relations. The reason that this has occurred is that the dominant tradition in Marxist studies on South Africa has been located within a structuralist framework derived essentially from the French school of Marxism. The methodology of the structuralist Marxists has been such that it has led them to develop analytical tools tllat have focused on race ratller than class as the predominant contradiction witllin SOUtll African society. An inadequate application and interpretation of Marx's labour tl1eory of value has led Wolpe to develop his cheap labour tllesis which has proven to be both problematic and inadequate as an aid to understanding the particular form of industrialisation in South Africa. Despite criticisms of tltis theory it has continued to be reproduced uncritically witltin South African acadentia leading to tl1e development of further analytical tools such as racial capitalism and racial fordism that have proven to be inadequate in interpreting industrialisation. These concepts, moving even further away fTom Marx 's labour theory of value, tended to focus on the superficial aspects of racism rather than on class exploitation. The effect has been that an eclecticism has developed witltin the structuralist Marxist's analysis leading to an interpretation tllat seemed no different from the neo­ classical and liberal schools of tllOught. A more serious implication of the structuralist Marxist's methodology has been the effect that it has had on the liberation movements and trade unions in South Africa. These tlleories played an important influential role in the strategic tltinking of the liberation organisations leading them to direct working class struggles against a dominant racism rather tllan against a dominant racism and capitalism. These studies have implied tllat the post­ apartheid state would be a refonnist capitalist state rather than a revolutionary socialist state. While emanating from Marxism the structuralist Marxists have in actual fact been promoting a reformist capitalism. With these criticisms in ntind I attempt to develop an interpretation of industrialisation tllat moves away from the structuralist methodology by anchoring my analysis within Marx's labour theory of value and class struggle. Furthermore, using the methodological approach of Geoffrey Kay I locate SOUtll Africa's process of industrialisation within the framework of colonialism and changing forms of imperialism. In order to understand South Africa's industrialisation (and that of many other former colonies) one has to develop an understanding of tlle changing forms of international capital and the effects that this had on development in various parts of tlle world. Tltis interpretation essentially locates development and industrialisation within tlle process of capital accumulation and class struggle but also allows for an understanding oftlle emergence of racism witllin tltis dynamic. The peculiarities of racism are located witltin this changing form of imperial dontination. While racism plays an important part in the dynamics of capital accumulation it is not tlle dontinant contradiction of South African society, wltich should be located within capitalist accumulation and changing forms of imperialism. Crises wltich emerge within this context are thus not crises of racism or crises in the economy but crises in the process of accumulation as a direct result of class struggle and affect both state and capital in a very serious way. The outcome of the crises can lead to reform or revolution. The post apartheid state has clearly adopted a reformist approach and for the structuralist Marxists tltis does not seem to be a problem, with many Marxists now seeing themselves as fonner Marxists. Political Economy and Industrialisation in South Africa: A Critique of Structuralist Marxist Analyses of Apartheid and Class Struggle. Yunus Mohamed Submitted for the degree ofPh.D. Department of Sociology University of Warwick, Coventry September 1997 Acknowledgments List of Abbreviations ii List of Tables iv INTRODUCTION 1 CHAPTER 1 10 Apartheid and the Cheap Labour Thesis 10 Periodisation 12 Surplus Value and Wages 14 Wages and Subsistence 17 Class Struggle 19 State Form 20 Theory of Internal Colonialism 21 Conclusion 22 CHAPTER 2 23 Apartheid and Crisis: A Critique of Structuralist Marxist Approaches 23 Introduction 23 Racial Capitalism and the Organic Crisis 24 Critique of Racial Capitalism 27 Discussions on the South African Crisis: An Overview 30 Crisis: The Economism of the Structuralist 33 Regulation Theory and Crisis 36 Regulation Theory and the South African Crisis 38 Critique of Aglietta 41 Racial Fordism and Regulation Theory - A Critique 44 Review of Structuralist Methodology 47 CHAPTER 3 53 The South African Political Economy 53 Introduction 53 Merchant Capital 54 Merchant Capital and the Origins of Racism 59 Merchant Capital and Colonialism 63 Merchant Capital and the Suppression of Industrial Development 69 Industrial Capital and Industrialisation - Early Attempts at Industrialisation 71 Industrialisation 74 Industrial Growth 77 Industrial Capital and Apartheid - 1948 and After 82 From Economic Growth to Crisis 1948 - 1970 88 CHAPTER 4 91 Towards an Understanding of the South African Crisis 91 Introduction 91 Overaccumulation, Crisis and Class Struggle 92 The Crisis in South Africa 97 A Critique of Clarke 99 CHAPTERS 107 Trade Unions in South Africa: A Theoretical Overview 107 Introduction 107 Marx and the Revolutionary Potential of Trade Unions 109 Lenin and the Economism of Trade Unions 110 Hyman and the Radical Dualism of Trade Union Action 112 Consciousness and Action of the Working Class in Trade Unions 113 Trade Union and Industrialisation in South Africa 117 Forms of Trade Unions in South Africa 120 South African Trade Union and Politics 123 Law and Class Struggle: The Registration Debate 131 CHAPTER 6 138 Early Endeavors into Industrialisation 138 Mining Influence on Industrialisation: 1900 - 1924 138 Industrial Action and Incipient Working Class Consciousness 147 Industrial and Commercial Workers Union (I CV) 1920 -1930 153 CHAPTER 7 156 Inter-War Industrialisation: 1925-1948 156 Industrialisation and Nationalist Sentiments: 1925 - 1933 156 Industrialisation Profiting on Gold: 1934 - 1947 162 Industrialisation and the Second World War 165 Rise of an Industrial Workforce: 1925 - 1948 167 Unity and Division: The Formation ofCNETU 1926 - 1945 174 The Formation of the African Mine Workers Union 178 CHAPTER 8 182 Apartheid and Industrialisation: 1948 - 1960 182 Industrialisation and Repression 182 Industrialisation and Balance of Payments Constraints 185 Trade Unions After the War 189 Formation of South African Congress of Trade Unions (SACTU) 191 CHAPTER 9 195 Industrialisation and Economic Decline 1960 - 1990 195 Mediocre Growth 195 Economic Decline and Crisis 197 Development of Trade Unions: the Dormant Years: 1965-73 201 The 1973 Strikes and the Emergence of Black Trade Unions 203 Causes of the Strike 204 State's Responses to the Strikes 206 Effects of the 1973 Strikes on Black Trade Unions 207 Benefit Societies 208 FOSATU 208 CUSA 209 The Community Unions 210 Other Independent Unions 210 Formation of AZACTU 211 Emergence of CO SA TU and NACTU 211 NACTU 217 Conclusion 217 CONCLUSION 219 SELECT BIBLIOGRAPHY 224 Books 224 Published Articles 227 Statistics 232 Unpublished Papers and Mimeos 232 Unpublished Theses 232 Reports Source Material 233 Acknowledg ments The completion of this thesis has been particularly difficult due to disruptions as a result of prolonged illness. I have been encouraged and assisted by many to complete this thesis and it would be impossible to individually thank all those who have generously assisted. Special thanks must go to Sabera Surtee for her constant encouragement and to Dr. Gardee and his family in Glasgow for their support. Special thanks must also go to the World University Service for funding my studies, and to my supervisors Tony Eiger and Robert Fine for their continued support, encouragement and indispensable comments on my work. I am particularly indebted to my parents for their unfailing support through troubled times. Finally, without the support, encouragement, endurance and patience of my wife Nasima this study would not have been completed. ii List of Abbreviations AEU Amalgamated Engineering Union AFCW African Food and Canning Workers Union AMWU African Mine Workers Union ANC African National Congress AZACTU Azanian Congress of Trade Unions AZAPO Azanian Peoples Organisation BAWU Black Allied Workers Union BCC Black Consultative Committee BMWU Black Municipal Workers Union BTI Board of Trade and Industry CCAWUSA Commercial Catering and Allied Workers
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