Structured Inequality: Historical Realities of the Post-Apartheid Economy

Abstract

With the advent of the twentieth anniversary of the democratic elections in South Africa, it is useful to examine the most crucial and certainly one of the most controversial areas of change: the South African economy. The historic wealth of South Africa, making it the second largest economy on the continent, was based on enormous mineral wealth combined with a racially discriminatory legal system that resulted in an abundant disenfranchised and poorly paid workforce. 1 In this manner, huge profits were gener ated for a very few. While the apartheid economy suffered from a very small internal consumer market, and increasingly from external censure and withdrawal, it still functioned successfully for the extremely small, privileged white community that reaped the benefits of the country’s wealth. Has it continued to be successful with an entirely different agenda of equality? South Africa has fully joined the international community and has been transformed in countless ways. All residents of the country now enjoy the full rights of citizenship; they are free to move about the country, and to engage in business and economic pursuits. South Africa has been welcomed into international business circles and freely trades with all nations. South Africa was asked to join the BRICS group (Brazil, Russia, India, China, and South Africa) of developing economies, and is the only country in Africa to be ranked among the top fifteen emerging economies worldwide. The very size of the economy has expanded by 438%, from $80 billion to $350 billion, and per capita GDP has increased by 90%. 2 Any visitor to the country’s urban centers will be astounded not only by the growth of the population, but also by the expansion of commerce. Apparently the end of apartheid was great for business in a general sense, but has that change benefitted most South Africans? In reality, the economy has not changed much for many. South Africa today suffers with the most unequal income