South Africa in the Changing World Order
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South Africa in the Changing World Order: Power, Finance and Society by Elizabeth Cobbett A thesis submitted to the Faculty of Graduate Studies and Postdoctoral Affairs in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Political Science Carleton University Ottawa, Ontario ©2012 Elizabeth Cobbett Library and Archives Bibliotheque et Canada Archives Canada Published Heritage Direction du 1+1 Branch Patrimoine de I'edition 395 Wellington Street 395, rue Wellington Ottawa ON K1A0N4 Ottawa ON K1A 0N4 Canada Canada Your file Votre reference ISBN: 978-0-494-93662-7 Our file Notre reference ISBN: 978-0-494-93662-7 NOTICE: AVIS: The author has granted a non L'auteur a accorde une licence non exclusive exclusive license allowing Library and permettant a la Bibliotheque et Archives Archives Canada to reproduce, Canada de reproduire, publier, archiver, publish, archive, preserve, conserve, sauvegarder, conserver, transmettre au public communicate to the public by par telecommunication ou par I'lnternet, preter, telecommunication or on the Internet, distribuer et vendre des theses partout dans le loan, distrbute and sell theses monde, a des fins commerciales ou autres, sur worldwide, for commercial or non support microforme, papier, electronique et/ou commercial purposes, in microform, autres formats. paper, electronic and/or any other formats. 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Canada ABSTRACT What is the relationship between changes in world order and the organisation of finance in South Africa? And how do we understand these changes theoretically? To answer this question I employ Fernand Braudel’s historical method of the study of material civilization—the constraints and possibilities on which the social world is based at any given point in time. This method provides an instructive and original explanation of societies, political power, economic modes of production, and the place that capitalism occupies historically and spatially within these contexts. My dissertation argues that patterns of both continuity and change in the world order are perceptible in South Africa as the country finds itself at the heart of historic shifts in world-economies. Change is observable at the boundaries of world- economies as arrangements in power, trade and investment shift to new political economic centres. South Africa is a zone historically linked to world-economies and reveals these movements. At the same time, global structures ensure continuity, through the power of neoliberal ideology and policies, the international financial institutions set up under American hegemony, the power of the global financial markets, and the enduring power of societal groups with links to transnational capitalism. This interplay between continuity and discontinuity are apparent in national contexts. The goal of this thesis is to study these different dimensions of change and continuity through an exploration of the edges where politics, economy, society, and state meet in post-apartheid South Africa. Looking at these ‘edges’ provides us with evidence and insight about the robustness of capitalism in South Africa and its structural links to world order, or in other words, about its continuity or discontinuity. Investigation of these changes is achieved through applying Braudel’s theoretical building blocks of multiple time frames, ‘world-economy’ and the ‘set of sets,’ concepts that unveils the multiplicity and complexity of social orders. Finally, I propose a reengagement with Braudel’s thoughts and methods. Braudel’s relevance lies in the potential of his theoretical framework to widen and thicken a rather compressed understanding of international political economy. ACKNOWLEDGEMENTS This thesis has been a very exciting journey, certainly the most informative personal journey that I have intentionally decided to undertake, and one that I have not taken alone. My primary travelling companion and advisor has been Randall Germain, who introduced me to the marvellous worlds of Fernand Braudel and Robert Cox. For this, countless thanks. I have found a place to sit and mull over the challenges and problems of the world. I wish to say thank you for letting me explore, make things messy and help me connect the results of my research into something resembling a coherent argument. Your patience and encouragement made all the difference and I know that this would have been a very different project if you had not been there to supervise me. I consider myself very lucky to have teamed up with you. My husband and love, Jacques Labontd, is himself an extensive traveller and happily jumped board to explore Braudel’s world-economies with me, going into the markets and thinking about cities and spaces and finance. We have accompanied and supported each other through twenty years of study, parenthood and adventure. I can truly say that this thesis and the topic of this thesis would not have existed without you. I am deeply touched that you have been at my side through all this and anticipate the good times to come. t My sweethearts, Thomas and Clara, have almost never known a moment when their parents were not studying. Good model or fast route to deterrence? Time will tell! For Thomas I want to say that the BIG screen you gave me to write my thesis on made a huge difference (how did I think that I could have managed on the small laptop screen?). Your pounding on my shoulders in the last sprint, along with your kind words and gestures, helped me through. Clara, your steady words of encouragement, cups of tea and frequent hugs meant so much to me as I know you know how I felt, having gone through your four years at Cdgep. Thanks to both of you for the very lively supper discussions about the state of the world and possible ways to set it straight. (They say that I must also thank Clemmie, our canine companion of 13 years, for keeping me company through the days of work at my desk). Angela, my mother, has offered me undying support in all my academic ventures. Her sharp and inquisitive mind about current affairs, her critical reflections about the way things are and why they are like that has formed my own thinking. Our numerous conversations about politics and life nourished me as I ploughed my way through university. Your unwavering support really made a difference. David, my father, supported me through these years although he could never quite see why I persisted in being an eternal student. As he says, I had better hurry up and work so as to get a pension. Jokes aside, you have given me rigour of thought and argument, introduced to the world of finance and I am glad for this rich heritage. Together, you kindled my passion for political economy. My crazy decision to study in another city was cushioned by years of support and care from my lovely sister Alison, who offered me a home in Ottawa. I don’t think that I really knew what I was getting into but your ongoing assistance and encouragement has brought me to the other side. I hope that I will be as supportive as you embark on your own PhD journey. Matthew, who has been through the process and knows what’s what, Billy, whose vast knowledge of development in Africa, Greg, who is passionate about Africa and its history, and Frances, who has been rooting for me for as long as I can remember and is now on her own academic journey; you have all accompanied me in your own special ways. Thanks! My fellow students who started with me in 2006 have a special place in my heart. We have been through thick and thin together; we moaned and laughed collectively. You’re a great group of wonderful thinkers and kind people. Special thanks to Stephanie Watt who started out as a fellow student, became a friend and then, the best treat of all, applied her brilliant mind to editing my work. Last, and not least at all, are my dearest and closest friends who I have known for years, Alexa, Nancy, Elsa, Evelyne, Isabelle, Jean-Pierre, Martine and Andr6. Several of you have journeyed the PhD path with me and I felt surrounded by the best of people with a keen interest in knowledge applied to and inspired from everyday life. Un gros merci a Isabelle et Jean-Pierre pour les nombreuses invitations de passer des fins de semaines a St Donat. La semaine passee au mois de mars m’a vraiment permis d’avancer dans mes deux premiers chapitres. I wish to offer warm and heartfelt gratitude to Blair Rutherford and Laura Macdonald for accepting to be on my committee. Special thanks to Laura for accepting to jump on board at the later stage. Reading and re-reading a thesis in progress is a tedious job, I am sure. Your comments, and this definitely includes Randall, brought this thesis to new levels and insights.