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D I S S E R T a T I O N Zur Erlangung Des Akademischen Grades Doctor Rerum Publicarum (D R

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D I S S E R T a T I O N Zur Erlangung Des Akademischen Grades Doctor Rerum Publicarum (D R WHAT DOES IT TAKE ? ENGAGING BUSINESS IN ADDRESSING THE WATER CHALLENGE IN SOUTH AFRICA GOVERNANCE FOR SUSTAINABLE DEVELOPMENT UNDER WEAK REGULATORY CAPACITY D I S S E R T A T I O N ZUR ERLANGUNG DES AKADEMISCHEN GRADES DOCTOR RERUM PUBLICARUM (D R. RER . POL .) AM FACHBEREICH POLITIK - UND SOZIALWISSENSCHAFTEN DER FREIEN UNIVERSITÄT BERLIN VORGELEGT VON NICOLE KRANZ BERLIN 2011 Erstgutachten: Prof. Dr. Tanja A. Börzel, Arbeitsstelle für Europäische Integration, Otto-Suhr- Institut für Politikwissenschaft, Freie Universität Berlin, Ihnestr. 22, 14195 Berlin, [email protected] Zweitgutachten : Assoc. Prof. Dr. Ralph Hamann, Graduate School of Business, University of Cape Town, Private Bag X3, Rondebosch 7701, South Africa, [email protected] Tag der Disputation: 20. Dezember 2010 Contents Tables ............................................................................................................. v Figures ............................................................................................................ v Abbreviations ................................................................................................. vi Acknowledgements ........................................................................................ ix A. Introduction ............................................................................................. 1 A.1. State of Research and Research Questions ............................................................................. 1 A.2. Research Design ...................................................................................................................... 2 A.3. Case Study Selection................................................................................................................ 4 A.4. Results and Implications .......................................................................................................... 7 A.5. Structure of the Thesis .......................................................................................................... 11 B. Theoretical Background and Analytical Framework ................................. 13 B.1. Sustainable Development and the Relevance of Water ....................................................... 14 B.1.1. Sustainable Development: Paradigm and Challenges in the Developing World........... 14 B.1.2. Relevance of Water for Sustainable Development ....................................................... 15 B.1.3. Water Challenges in Africa ............................................................................................ 17 B.2. Sustainable Development as Governance Challenge: Roles of Business and the State ....... 19 B.3. Governance of Water Resources ........................................................................................... 22 B.3.1. Role of the State in Water Governance......................................................................... 23 B.3.2. Business and Water Management ................................................................................ 25 B.3.3. Characteristics of Sustainable Water Governance ........................................................ 26 B.4. Focusing on the Role of Business Actors: Dependent Variable ............................................. 30 B.4.1. Varieties of the Contribution ......................................................................................... 31 B.4.2. Modes of Interaction ..................................................................................................... 36 B.4.3. Long-Term Dynamics ..................................................................................................... 39 B.5. Independent Variables .......................................................................................................... 43 B.5.1. Internal Factors (Resource-based) ................................................................................ 43 B.5.2. Institutional Explanations .............................................................................................. 45 B.5.3. Government Drivers ...................................................................................................... 51 B.5.4. Interactions .................................................................................................................... 54 B.5.5. Government Capacity .................................................................................................... 55 B.6. Independent Variables in the non-OECD Context ................................................................. 59 B.7. Preliminary Model ................................................................................................................. 62 C. Research Design and Methodological Considerations .............................. 64 C.1. Approach ............................................................................................................................... 64 C.1.1. Key Research Questions and Operationalisation .......................................................... 65 C.2. Case Study Selection.............................................................................................................. 70 C.3. Data Sources .......................................................................................................................... 75 C.4. Data Analysis ......................................................................................................................... 78 D. Country Background South Africa ............................................................ 79 D.1. South Africa: An Emerging Economy, and Weak State? ....................................................... 79 D.2. Sustainable Development – the South African Discourse ..................................................... 82 D.3. Water: Component for Sustainable Development in South Africa ....................................... 85 i D.4. Driving Forces: Independent Variables at the National Level ............................................... 91 D.4.1. Government Drivers ...................................................................................................... 91 D.4.2. Water and Environmental Legislation and Related Policies .......................................... 91 D.4.3. Mining Legislation ......................................................................................................... 96 D.4.4. Historic Perspective on the Business-State Relationship .............................................. 98 D.4.5. Role and Capacity of Government Actors ................................................................... 100 D.4.6. Other Institutional Drivers ........................................................................................... 109 D.5. Summary and Transition to Case Studies ............................................................................ 116 E. Witwatersrand: Gold and Water ........................................................... 118 E.1. Sector and Region ................................................................................................................ 118 E.2. Main Water Management Challenges................................................................................. 122 E.3. Business Contributions – Firms and Activities ..................................................................... 127 E.3.1. Main Characteristics of Firms Investigated ................................................................. 127 E.3.2. Types and Modes of the Contribution......................................................................... 129 E.4. Drivers ................................................................................................................................. 136 E.4.1. Resource-based Factors .............................................................................................. 136 E.4.2. Normative Drivers/Industry Pressure .......................................................................... 138 E.4.3. Competitive Drivers ..................................................................................................... 138 E.4.4. Social Drivers ............................................................................................................... 139 E.4.5. Government Drivers .................................................................................................... 142 E.5. Case Study Summary ........................................................................................................... 147 E.5.1. Contribution ................................................................................................................ 147 E.5.2. Drivers ......................................................................................................................... 148 E.5.3. Long-term Dynamics .................................................................................................... 149 F. At the Coalface: Coal and Water in Mpumalanga .................................. 151 F.1. Sector and Region ................................................................................................................ 151 F.2. Main Water Management Challenges................................................................................. 153 F.3. Business Contributions – Firms and Activities ..................................................................... 155 F.3.1. Main Characteristics of Companies Investigated .......................................................
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