"The invisible hand": The roots of Black economic empowerment, Sankorp and societal change in South Africa, 1985-2000

Abstract

The political changes in South Africa following the decision by the ruling National Party of former President FW de Klerk, to unban political organisations such as the African National Congress (ANC) and Pan African Congress (PAC) as well as their leaders, had been preceded by efforts of business to adapt to the changing global environment. Negotiations with respect to political transformation and the facilitation of a new black majority government, cannot solely be interpreted as a political process. The business community was instrumental in negotiating with government the re-entry of the South African economy into the global economy. A prerequisite to such involvement was a stable political and social environment, which in the South African context, implied political transformation and an end to a racially divided political dispensation. The international economic developments since the mid-1980s displayed stronger competition than in the past. For the South African domestic economy it became imperative to utilise all resources, human, natural and capital, optimally. The global environment was characterised by comp etitiveness in niche markets. Niche markets, domestically as well as globally, offered opportunities expressed in economies of scale. Those gains were associated with cost efficiencies of increased output at reduced costs.