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South Africa

South Africa. Background Foundations of Apartheid Rise of Opposition Sanctioning of the State Transition to Democracy Legacies of Apartheid Implementing Reconstruction and Dev. Prgm Current Situation. Background. First Europeans – French and Dutch settlers

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South Africa

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  1. South Africa • Background • Foundations of Apartheid • Rise of Opposition • Sanctioning of the State • Transition to Democracy • Legacies of Apartheid • Implementing Reconstruction and Dev. Prgm • Current Situation

  2. Background • First Europeans – French and Dutch settlers • Known as “Boers” or farmers in Afrikaans • Fled religious persecution in mid-17 century • Dutch East India Co. in Table bay • Southern Cape land is rich and fertile • Natives: Khoikhoi (SW) & Xhosa (East) • Constant fights; Europeans with guns

  3. Background (cont.) • British came for the location – refueling • Est. British East India Company • 1806, captured Cape Peninsula from Dutch • 1867, diamond found in Vaal River • Cecil Rhodes built international diamond cartel • Gold found less than 20 years later • By 1900, gold and diamonds made up 60% of export

  4. Background (cont.) • By 1911, gold mines account of 20% of economy and employed 215, 000 people • Tension bet. British and Dutch resulted in a full-scale Boer War until 1910. • British won decisively and Union of SA became a self-governing dominion of British Commonwealth.

  5. Foundations of Apartheid • 1909 Constitution – SA is a segregated democracy; only whites could vote • Bet. 1910-1948, SA ruled by relatively liberal group dominated by English speakers called United Party (UP) • White SA get majority of benefits • Blacks work in mining and domestic

  6. Foundations of Apartheid (cont.) • 1948, predominantly Afrikaner National Party (NP) seize control from UP • Imposed “Apartheid” or “Apartness” in Afrikaans; shape history for next 50 years • 4 racial groups: whites, coloreds (mixed race), Indian, Africans • Segregation; 1913 National Land Act – illegal for Blacks to purchase land outside designated areas

  7. Foundations of Apartheid (cont.) • Hendrik Verwoerd, a “philosopher” , “.. gives the Native an opportunity to develop what is his own, so he can have pride and self-respect as a Native, instead of being continually humiliated as a failed and imitation white” • Many Acts enacted to enforce segregation • Blacks resettled to disguised “homelands” • Required to carry passports and travelled hours each day on cramped buses

  8. Foundations of Apartheid (cont.) • 1912, 2 years after country formation, a small group of Blacks formed SA Native National Congress (SANCC) devoted to advancement of native population • Led by missionary-educated lawyers • SANCC later became African National Congress (ANC) • Later ANC is joined by colored African Political Organization, SA Indian Congress, and SA Communist Party

  9. Rise of Opposition (cont.) • ANC leaders -Oliver Tambo, Walter Sisulu, & Nelson Mandela- supported a large scale passive resistance campaign in 1952; adherence to non-violence • 1955, ANC adopted Freedom Charter – “SA belongs to all who live in it, black or white, …. no government can justly claimed authority unless it is based on the will of the people” • NP track Mandela and Tambo, who were practicing law together in Johannesburg

  10. Rise of Opposition (cont.) • In 1963, 8 ANC members were convicted of high treason and sentenced to life imprisonment • Mandela spend 27 years in prison • Notable personalities include: • Helen Suzman, white professor who was sole member of liberal Progressive Party in Parliament • Desmond Tutu: Anglican Archbishop of Cape Town • Stephen Biko, founder of Black Consciousness Movement, died in police custody in 1977

  11. Rise of Opposition (cont.) • Sharpeville Massacre: police shot and killed 69 peaceful demonstrators led some conservatives to advocate violence • 1976, security forces shot and killed to children in Soweto igniting a firestorm that led to 500-1000 deaths. • In the 70s, gold prices fell and oil prices hiked hitting SA hard; mining industry hit hard • By 1978, 5.1% of GDP or 21% of budget devoted to defense. SA was isolated.

  12. Sanctioning the State • Chase Manhattan Bank refused to roll out SA loans • Sullivan Principles, a code of conduct for firms hoping to advance human rights and equal opportunity in SA • 1986, over Pres. Reagan’s veto, passed Comprehensive Anti-Apartheid Act, boycotting nearly all US commerce with SA • 1989, SA Pres. Botha suffered debilitating stroke. • F. W. de Klerk, president of NP took over.

  13. Transition to Democracy • Before Botha’s stroke, he started covert meetings with Mandela. Bans on ANC lifted in 1990. • de Klerk and Mandela were aligned in short-term aims: saw political violence boiling and were determined to prevent either end of political spectrum from imposing its wished on the country • Agreed to conduct negotiating framework – the Convention for Democratic SA (CODESA)

  14. Transition to Democracy (cont.) • Nov. 1993, Population Registration Act ended; independent homelands reintegrated • Jan. 1994, all white parliament voted interim constitution establishing SA as a multicultural nation granting citizenship to non-whites. • 1994, SA electorate voted choosing a parliament based on proportional representation and electing a Government of National Unity (GNU). • GNU committed to “power sharing” rather than “winner take all”. Any party that won 5% (20%) of national vote was guaranteed representation in the cabinet (deputy presidency).

  15. Transition to Democracy (cont.) • ANC got 63% of vote in April 1994 election • Truth and Reconciliation Commission in 1995 • ANC moved to deliver campaign promise of change and redistribution with Reconstruction and Development Program (RDP) • Started with R2.5B in 1995 and R10B 1996. • Est. business plan and build houses for millions of SA. Pledge to build 1 million houses by 1999 and electrification of another 2.5 million homes. • Slow implementation. Value of Rand collapsed & President Mandela ended RDP in March, 1996.

  16. Transition to Democracy (cont.) • June 1996, a new macroeconomic strategy called Growth, Employment, and Redistribution (GEAR) • Obj.: 6% growth by 2000, 1.3 million jobs outside agriculture, fiscal deficit of 3% of GDP, privatization, and tariff reduction • Received tremendous opposition from all sides. • 1999, Thabo Mbeki became President of SA.

  17. Legacies of Apartheid • 6 million SA blacks are unemployed • 9 million considered destitute • Over 10 million blacks had no access to running water • 23 million had no electricity • 60% black adults never attended school • Infant mortality: 7/1000 (whites), 80/1000 (blacks)

  18. Key Indicators (1/23/07)From Economist Intelligence Unit (Source:Country data)

  19. Source • Remaking the Rainbow Nation: South Africa 2002, Rawi Abdelal, Debora Spar, and Katherine E. Cousins, Harvard Business School.

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