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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Why 'Anglo licks the ANC's boots': globalization and State-capital relations in South Africa
Author:Iheduru, Okechukwu C.
Periodical:African Affairs: The Journal of the Royal African Society
Geographic term:South Africa
Subjects:economic policy
External link:https://www.jstor.org/stable/27667044
Abstract:Under what conditions does capital in the age of globalization accept State regulation of markets instead of exercising its 'exit option' and shifting assets to less restrictive markets? This article explores this question by analysing local and foreign capital's compliance with the South African government's policy of seeking to transfer 25-30 percent of equity and management in white-owned companies to blacks in all sectors of the economy by 2014. This is part of government's overall policy of black economic empowerment (BEE) to foster the emergence of a black capital-owning class. Instead of exit, there has been, with few exceptions, a 'race to comply with BEE' by all manner of businesses in virtually all sectors of the economy. The article argues that the relative vulnerability of States and markets to globalization pressures compels both actors to reach a 'fateful compromise' that enhances State autonomy to regulate markets while also advancing the interests of capital. The article analyses the empirical evidence of this 'fateful compromise' at both the industry and firm levels. Since not all segments of capital have complied with BEE, it also attempts to explain cases of non-compliance. It concludes with a discussion of the implications of BEE for democratic politics in South Africa. Notes, ref., sum. [Journal abstract]