University of Warwick institutional repository: http://go.warwick.ac.uk/wrap A Thesis Submitted for the Degree of PhD at the University of Warwick http://go.warwick.ac.uk/wrap/50772 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. Meeting the Challenges of Past and Present: Post-Apartheid South Africa's Reintegration into the Global Political Economy, 1994-1997 by Stephen R. Hurt B. Sc. M. Sc. A Thesis Submitted for the Degree of Doctor of Philosophy University of Warwick Department of Politics and International Studies September 1999 ii Contents Acknowledgements vi ................................................. Declaration Vii ...................................................... List Abbreviations viii of ............................................... List Tables X of ..................................................... List Figures xiii of ................................................... Summary xiv ........................................................ Chapter One South Africa Global Reintegration 1 - and .................... 1.1 Introduction 1 ................................................. 1.2 A new research 9 agenda......................................... 1.3 Outline thesis 13 of structure of .................................... Chapter Two - Theories Concerning the Nature of the Global Political Economy that South Africa is Reintegrating Into 17 ................................ 2.1 Major historical developments 19 .................................. 2.1.1 The global financial 20 emergenceof markets...................... 2.1.2 The transnationalisation 24 of production ......................... 2.1.3 Ideology the the 26 and end of cold war .......................... 2.1.4 The dominance the triad 29 of ................................. 2.2 The international debate 30 global versus ............................ 2.2.1 Globalisation 32 and states.................................... 2.3 Southern developments 36 perspectiveson global ...................... Contents iii 2.4 Globalisation `South' 42 andthe ................................... 2.5 Summary 46 .................................................. Chapter Three - South Africa's Unique Position: The Historical Legacy of Apartheid 48 ....................................................... 3.1 An inequality 49 outline of ....................................... 3.2 Discriminatory lack 57 education and a of skilled resources............... 3.3 Unemployment 62 and workplace relations........................... 3.4 Historical development of South Africa in the world economy.......... 64 3.5 South Africa's 75 regional relations................................. 3.5.1 Historical dominance 75 ...................................... 3.5.2 Total destabilisation 81 strategy and ............................. 3.6 Summary 85 .................................................. Chapter Four - Domestic Policy Formulation: Debates Over the Nature of the Political Economic Transformation 86 and ............................... 4.1 The Reconstruction Development Programme 88 and ................... 4.2 The the 97 role of state?......................................... 4.3 Who is leading 100 and what policy changes?......................... 4.4 As things 112 stand - conclusions .................................. Open 117 Chapter Five - New Doors in South Africa's Global Relations....... 5.1 The the International Financial Institutions 118 role of .................. 5.2 The trading community 124 world .................................. Contents iv 5.3 The for foreign investment its implications 131 need and ................. 5.4 Global to 141 pressures conform ................................... 5.5 Summary 145 ................................................. South Africa's Chapter Six - The European Union : An Important Factor in Reintegration 146 ................................................... 6.1 Relations during the 148 apartheid era............................... 6.2 Negotiations the EU 150 with ..................................... 6.2.1 Early EU measuresand the background to the Trade and Co-operation 150 negotiations ............................................ 6.2.2 The EU South Africa's 152 proposal and response.................. 6.3 South African 155 reservations.................................... 6.3.1 Debate the Lome Convention 156 over membershipof .............. 6.3.2 South African to the FTA 165 objections proposed .................. 6.3.3 Moves towards 174 consensus................................. 6.4 Implications EU future 175 of relations and prospects................... 6.5 Conclusions 179 ............................................... Chapter Seven - South Africa and the Region : From Destabilisation to Leadership 182 ..................................................... 7.1 Historical background 183 ........................................ 7.1.1 Brief history African integration 183 of regional ..................... 7.1.2 SADCC: alternative approach 184 an ............................. 7.1.3 History the SADCC/SADC 189 of ............................... Contents v 7.2 The the SADC 193 post-apartheid years and membershipof ............... 7.3 The SADC leadership 198 and .................................... 7.3.1 Commitment 198 questioned ................................... 7.3.2 The the 212 potential of region................................ Chapter Eight - Conclusions: A Rationalization of Competing Pressures... 217 8.1 Summary findings 217 of major .................................... 8.2 Prospects 225 ................................................. 8.3 Agenda for future 230 research.................................... 8.4 Finale 235 .................................................... Appendix One Note Methodology 237 -A on ............................. Appendix Two List Research Interviews 241 - of .......................... Appendix Three Concise History South Africa 243 -A of ................... Appendix Four - The Late Conclusion of Negotiations With the European Union 245 ......................................................... Bibliography 249 ................................................... Acknowledgements I would like to expressmy sincere thanks to the following people in helping me in various ways in the writing of this thesis. Joanne Cain, Jo Fitzwalter and my parents for their financial and emotional support. Special thanks go to my supervisors, Ian Campbell and especially Peter Burnell who kindly took over the project at the halfway stage and has provided invaluable advice. Appreciation is also given to all those people who agreed to researchinterviews, and to the Department of Politics and International Studies at the University of Warwick for providing financial assistancefor my two rounds of interviews at the European Commission and South African Mission to the European Union in Brussels. Declaration I certify that no portion of this thesis has been submitted in support of an application for another degree or qualification at this or any other university. viii List of Abbreviations ACP African, Caribbean and Pacific AICs Advanced Industrialised Countries ANC African National Congress ASEAN Association of South-East Asian Nations BLNS Botswana, Lesotho, Namibia and Swaziland CAP Common Agricultural Policy COMESA Common Market of Eastern and Southern Africa CONSAS Constellation of Southern African States COSATU Congressof South African Trade Unions DRC Democratic Republic of Congo EAC East African Community EC European Community ECA United Nations Economic Commission for Africa ECLA United Nations Economic Commission for Latin America ECOWAS Economic Community of West African States EDF European Development Fund EIB European Investment Bank ESKOM Electricity Supply Commission EU European Union FDI Foreign Direct Investment FLS Front Line States List of Abbreviations ix FTA Free Trade Agreement GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product GEAR Growth, Employment and Redistribution GEIS General Export Incentive Scheme GNU Government of National Unity GSP GeneralisedSystem of Preferences HDI Human Development Index (United Nations Development Programme) IFIs International Financial Institutions IFP Inkatha Freedom Party IMF International Monetary Fund IOR-ARC Indian Ocean Rim Association for Regional Co-operation ISCOR Iron and Steel Corporation ISI Import Substitution Industrialisation JSE JohannesburgStock Exchange LDCs Less Developed Countries Mercosur Southern Cone Market in Latin America MFN Most-Favoured Nation NAFTA North American Free Trade Agreement NEDLAC National Economic Development and Labour Council NICs Newly Industrialising Countries NIEP National Institute for Economic Policy NP National Party NTBs Non-Tariff Barriers List of Abbreviations x OECD Organisation for Economic Co-operation and Development OPEC Organisation of Petroleum Exporting Countries RENAMO ResistenciaNacional Mozambicana RDP Reconstruction and Development Programme SAACC Southern African Aid Co-ordination Conference SACP South African Communist Party SACU Southern African Customs Union SADC Southern African Development Community SADCC Southern African Development Co-ordination Conference SAIIA South African Institute of International Affairs SAPs Structural Adjustment Programmes TDA Trade