Competing policy imperatives in Post-Apartheid South Africa: An analysis of the effects and larger significance of ESKOM restructuring on the South African automotive industry, 2005-2014
- Authors: Sibuyi, Lucas Nkosana
- Date: 2021-10-29
- Subjects: Eskom (Firm) , South Africa Colonial influence , Electric power Conservation South Africa , Electric utilities Government ownership South Africa , Electric utilities Privatization South Africa , Import substitution South Africa , Government business enterprises South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/192911 , vital:45278 , 10.21504/10962/192911
- Description: The state has played an indispensable, major role in the industrialisation of South Africa, and its transformation from an economy of agriculture and mining to one based on manufacturing and services by the 1970s. Large state-owned corporations in communications and transportation, finance, industry and power have been key to this process, which also involved an extensive (and racist form of) import substitution industrialisation (ISI) from the 1920s. The 1970s saw a shift towards neoliberal policies, first under the National-Party-led apartheid government and then under the African-National-Congress-led democratic government formed in 1994. Since the 1980s, this restructuring has profoundly affected state-owned enterprises (SOEs), including the monopoly electricity utility ESKOM, and manufacturing industries, such as the automotive sector. This thesis examines the evolution of and interaction between different areas of neoliberal policy, and their evolution over time through a consideration of the relationship between the restructuring of SOEs and manufacturing, with a focus on ESKOM and autotomotives respectively. Relying on interviews with senior officials, policymakers, union leaders and industrialists, as well as primary documents, the study examines the responses of OEMs in South Africa (BMW, Ford, General Motors, Mercedes Benz/Daimler, Nissan, Toyota and Volkswagen) to ESKOM’s actions, and analyses the root of these actions. It argues that while restructuring has been framed by a common framework, policy development and implementation is not coordinated or cohesive. ESKOM, for example, gutted investment in electricity and maintenance generation capacity to become profitable and create space for Independent Power Providers (IPPs) – neoliberal measures for which it was rewarded and lauded. This took place at a time when national policy emphasised the need to grow manufacturing and attract direct investment by creating an investor-friendly climate resting on infrastructure. It also took place when the Department of Trade and Industry (DTI) rolled out highly successful plans – also praised and rewarded – to help adjust automotives to open markets; the sector grew much larger than under ISI, while other sectors like textiles collapsed. ESKOM’s measures, however, led to a rapid decline in the capacity and stability of the power system, and directly contradicted the drive to expand and globalise manufacturing, in which automotives was now the leading edge. Corruption in the utility worsened, much of it through subcontracting measures rooted in neoliberal reforms, but this did not cause the basic problems. It is argued that this situation of competing policy imperatives reflects deeper, long-term problems in the South African state, including contradictory policies, uneven capacity and a lack of coordination. For example, there was no coordination between the DTI and stakeholder departments that regulate ESKOM, being the shareholder ministry, the Department of Public Enterprises (DPE) and its policy ministry, and the Department of Mineral Resources and Energy (DMRE). These types of problems did not start postapartheid, and post-1994 reforms have not adequately addressed them. What exists is not a “developmental” state, as policymakers hope, but a fractured state of an intermediate type that combines “developmental” and “predatory” features in a oneparty dominant system in which lines between ruling party and state blur, and state resources are leveraged for elite class formation. Such was the case under apartheid skippered by the NP, with Afrikanerisation, and it continues today post-apartheid under the ANC with BEE. Major reforms are needed, but not just in SOE governance or budgets, as many have suggested. If we are to take the nation forward, the basic design of the state must be reformed. The state needs professionalised, coherent policy-making and implementation, proper coordination of state entities and hard decisions. It should manage high levels of public infrastructure, guarantee political stability and credit ratings, and provide policy certainty and predictability. Without big reforms it will remain a chronic underperformer. , Thesis (PhD) -- Faculty of Humanities, Sociology, 2021
- Full Text:
- Date Issued: 2021-10-29
- Authors: Sibuyi, Lucas Nkosana
- Date: 2021-10-29
- Subjects: Eskom (Firm) , South Africa Colonial influence , Electric power Conservation South Africa , Electric utilities Government ownership South Africa , Electric utilities Privatization South Africa , Import substitution South Africa , Government business enterprises South Africa
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10962/192911 , vital:45278 , 10.21504/10962/192911
- Description: The state has played an indispensable, major role in the industrialisation of South Africa, and its transformation from an economy of agriculture and mining to one based on manufacturing and services by the 1970s. Large state-owned corporations in communications and transportation, finance, industry and power have been key to this process, which also involved an extensive (and racist form of) import substitution industrialisation (ISI) from the 1920s. The 1970s saw a shift towards neoliberal policies, first under the National-Party-led apartheid government and then under the African-National-Congress-led democratic government formed in 1994. Since the 1980s, this restructuring has profoundly affected state-owned enterprises (SOEs), including the monopoly electricity utility ESKOM, and manufacturing industries, such as the automotive sector. This thesis examines the evolution of and interaction between different areas of neoliberal policy, and their evolution over time through a consideration of the relationship between the restructuring of SOEs and manufacturing, with a focus on ESKOM and autotomotives respectively. Relying on interviews with senior officials, policymakers, union leaders and industrialists, as well as primary documents, the study examines the responses of OEMs in South Africa (BMW, Ford, General Motors, Mercedes Benz/Daimler, Nissan, Toyota and Volkswagen) to ESKOM’s actions, and analyses the root of these actions. It argues that while restructuring has been framed by a common framework, policy development and implementation is not coordinated or cohesive. ESKOM, for example, gutted investment in electricity and maintenance generation capacity to become profitable and create space for Independent Power Providers (IPPs) – neoliberal measures for which it was rewarded and lauded. This took place at a time when national policy emphasised the need to grow manufacturing and attract direct investment by creating an investor-friendly climate resting on infrastructure. It also took place when the Department of Trade and Industry (DTI) rolled out highly successful plans – also praised and rewarded – to help adjust automotives to open markets; the sector grew much larger than under ISI, while other sectors like textiles collapsed. ESKOM’s measures, however, led to a rapid decline in the capacity and stability of the power system, and directly contradicted the drive to expand and globalise manufacturing, in which automotives was now the leading edge. Corruption in the utility worsened, much of it through subcontracting measures rooted in neoliberal reforms, but this did not cause the basic problems. It is argued that this situation of competing policy imperatives reflects deeper, long-term problems in the South African state, including contradictory policies, uneven capacity and a lack of coordination. For example, there was no coordination between the DTI and stakeholder departments that regulate ESKOM, being the shareholder ministry, the Department of Public Enterprises (DPE) and its policy ministry, and the Department of Mineral Resources and Energy (DMRE). These types of problems did not start postapartheid, and post-1994 reforms have not adequately addressed them. What exists is not a “developmental” state, as policymakers hope, but a fractured state of an intermediate type that combines “developmental” and “predatory” features in a oneparty dominant system in which lines between ruling party and state blur, and state resources are leveraged for elite class formation. Such was the case under apartheid skippered by the NP, with Afrikanerisation, and it continues today post-apartheid under the ANC with BEE. Major reforms are needed, but not just in SOE governance or budgets, as many have suggested. If we are to take the nation forward, the basic design of the state must be reformed. The state needs professionalised, coherent policy-making and implementation, proper coordination of state entities and hard decisions. It should manage high levels of public infrastructure, guarantee political stability and credit ratings, and provide policy certainty and predictability. Without big reforms it will remain a chronic underperformer. , Thesis (PhD) -- Faculty of Humanities, Sociology, 2021
- Full Text:
- Date Issued: 2021-10-29
An assessment of the African Peer Review Mechanism with specific reference to South Africa
- Authors: Sibuyi, Lucas Nkosana
- Date: 2008
- Subjects: African Peer Review Mechanism , Peer review -- South Africa , Peer review -- Political aspects -- Africa , African cooperation , Political leadership -- Africa , Africa -- Politics and government -- 1960- , Democratization -- Africa , Civil society -- Africa , Political participation -- Africa
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8242 , http://hdl.handle.net/10948/758 , African Peer Review Mechanism , Peer review -- South Africa , Peer review -- Political aspects -- Africa , African cooperation , Political leadership -- Africa , Africa -- Politics and government -- 1960- , Democratization -- Africa , Civil society -- Africa , Political participation -- Africa
- Description: The Heads of State and Government Implementation Committee (HSGIC) of the New Partnership for Africa’s Development (Nepad) acknowledged and recognised the centrality of good governance within the context of the African Peer Review Mechanism (APRM), an innovative mechanism acceded to by member states of the African Union (AU) as a self- monitoring mechanism for good governance. South Africa is one of the countries which acceded to the APRM in 2003. Accordingly, South Africa appointed a National Governing Council (NGC) under the chairpersonship of the Minister of Public Services and Administration as the focal point to develop a strategy to manage the national APRM process. The NGC was constituted of business, the disabled, civil society, churches, trade unions, government and women’s coalitions thus ensuring all relevant stakeholders are represented. As part of South Africa’s country assessment, questionnaires dealing with the four core thematic areas of the APRM were sent through to the public by community development workers. In addition, four technical assessment agencies were appointed to assist in conducting research on the four thematic areas. The primary objective of this study is to examine the theoretical approach to the study and the African Peer Review Mechanism’s contemporary relevance to South Africa, its intended beneficiaries and an assessment of South Africa for the period 2006. The study revealed that Proportional Representation (PR) and floor-crossing have an impact on the sustainability, relevance, long term development, vibrancy and profundity of constitutional democracy in the country. Clearly, since the dawn of the democratic dispensation in South Africa the electoral system introduced is such that it had to take into account the challenges the country faced during the apartheid system of governance. In this context, enough space for free political competition in the country was created. On the basis of the findings of the study, it is patently clear that the time allocated for the CSAR was minimal and the country should have been given at least two years so that the self assessment could have been extensively done. On the issue of HIV and AIDS and its relationship to socio-economic conditions, it was revealed that the country has a lot to do in this regard. The debilitating effect that HIV and AIDS has on the lives of the citizens requires clarity of policy and strategy, consistency in public communication and the need for sustained partnerships amongst all relevant stakeholders. At another level, there was a call for a basic income grant although government does not necessarily support it. Based on the research findings above, a new research area outlined under recommendations can be conceptualized for further research and it requires some attention.
- Full Text:
- Date Issued: 2008
- Authors: Sibuyi, Lucas Nkosana
- Date: 2008
- Subjects: African Peer Review Mechanism , Peer review -- South Africa , Peer review -- Political aspects -- Africa , African cooperation , Political leadership -- Africa , Africa -- Politics and government -- 1960- , Democratization -- Africa , Civil society -- Africa , Political participation -- Africa
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: vital:8242 , http://hdl.handle.net/10948/758 , African Peer Review Mechanism , Peer review -- South Africa , Peer review -- Political aspects -- Africa , African cooperation , Political leadership -- Africa , Africa -- Politics and government -- 1960- , Democratization -- Africa , Civil society -- Africa , Political participation -- Africa
- Description: The Heads of State and Government Implementation Committee (HSGIC) of the New Partnership for Africa’s Development (Nepad) acknowledged and recognised the centrality of good governance within the context of the African Peer Review Mechanism (APRM), an innovative mechanism acceded to by member states of the African Union (AU) as a self- monitoring mechanism for good governance. South Africa is one of the countries which acceded to the APRM in 2003. Accordingly, South Africa appointed a National Governing Council (NGC) under the chairpersonship of the Minister of Public Services and Administration as the focal point to develop a strategy to manage the national APRM process. The NGC was constituted of business, the disabled, civil society, churches, trade unions, government and women’s coalitions thus ensuring all relevant stakeholders are represented. As part of South Africa’s country assessment, questionnaires dealing with the four core thematic areas of the APRM were sent through to the public by community development workers. In addition, four technical assessment agencies were appointed to assist in conducting research on the four thematic areas. The primary objective of this study is to examine the theoretical approach to the study and the African Peer Review Mechanism’s contemporary relevance to South Africa, its intended beneficiaries and an assessment of South Africa for the period 2006. The study revealed that Proportional Representation (PR) and floor-crossing have an impact on the sustainability, relevance, long term development, vibrancy and profundity of constitutional democracy in the country. Clearly, since the dawn of the democratic dispensation in South Africa the electoral system introduced is such that it had to take into account the challenges the country faced during the apartheid system of governance. In this context, enough space for free political competition in the country was created. On the basis of the findings of the study, it is patently clear that the time allocated for the CSAR was minimal and the country should have been given at least two years so that the self assessment could have been extensively done. On the issue of HIV and AIDS and its relationship to socio-economic conditions, it was revealed that the country has a lot to do in this regard. The debilitating effect that HIV and AIDS has on the lives of the citizens requires clarity of policy and strategy, consistency in public communication and the need for sustained partnerships amongst all relevant stakeholders. At another level, there was a call for a basic income grant although government does not necessarily support it. Based on the research findings above, a new research area outlined under recommendations can be conceptualized for further research and it requires some attention.
- Full Text:
- Date Issued: 2008
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