Weak links in the BEE chain? Procurement,skills and employment equity in the metals and engineering industries

The Department of Trade and Industry's 2003 strategy identifies ‘Black Economic Empowerment’ (BEE) as being broad-based, inclusive, and part of a sustainable long-term growth and development strategy. In this, it is consistent with the 2001 Black Economic Empowerment Commission report, the ANC 2002 conference resolution and ultimately the ANC's Reconstruction and Development Programme of 1994. We use firm-level information in the metals and engineering industries to examine the actual nature and extent of BEE across the dimensions of ownership, procurement, employment equity and training. Its aim is to examine the relationships between BEE concepts and provisions and the responses that firms took in practice. Direct pressure for BEE in metals and engineering firms arises from legislation and regulatory provisions governing employment equity, skills development and procurement. It also follows from procurement provisions applying to large companies that buy from metals and engineering firms, as well as to mining firms and State-Owned Enterprises such as Eskom and Transnet.     

印度尼西亚“沉船”政策分析

印尼对于在印尼海域非法捕鱼的外国渔船实施"沉船"政策已有多年,近年来被炸沉的船舶数量越来越多。印尼"沉船"政策涉及渔业、渔民、渔业执法、非法捕鱼等方面,通过对这些问题的分析,可以看出印尼的"沉船"政策是涉及经济、社会、政治、外交等多方面的综合性政策。作为一个海洋国家,渔业是印尼的立国之本,但是,印尼的渔业发展水平并不高,渔民是最贫穷的群体之一。由于国内资金短缺,渔业管理与执法能力不足,非法和没有受到管制的捕捞活动普遍存在,在国内民族主义情绪的影响下,印尼政府通过高调实施"沉船"政策来显示对国家利益的维护决心。在这种背景下,虽然"沉船"政策遭到外界的众多批评,并且对佐科政府建设"全球海洋支点"战略有一定的消极影响,但是,可以预见,出于维护国家利益的考虑,佐科在总统的第二任期内,仍将继续实施"沉船"政策。     

Creating Surplus Labour: Neo-Liberal Transformations and the Development of Relative Surplus Population in Indonesia

ABSTRACT

Many among the world’s population are surplus to the requirements of capital accumulation. These are people who become engaged in precarious employment both in rural and urban contexts and those who are involuntarily unemployed. Their presence has been particularly acute in “peripheral countries.” Mainstream economic literature explains this in terms of the dual labour market, where it is argued that surplus labour will eventually disappear with market-led economic development. Contrary to this explanation, this article argues, using Marx’s concept of relative surplus population (RSP), that under the existing neo-liberal framework such labour vulnerability is continually being created. This article charts the developmental history of Indonesia and demonstrates that the growth of RSP is an outcome of a neo-liberal transformation which favours capital accumulation at the service of global markets. Neo-liberal adjustments shape the development of RSP in three related ways. First, the adjustments change class relations and transform state orientation. Second, the reconfiguration of class dynamics and the state shapes the model of accumulation. Third, the model of accumulation eventually affects the size of RSP. It is argued that the disconnection between the domestic agricultural development and industrialisation has contributed to the maintenance of a large RSP in Indonesia.     

Dialectics of industrialization in Indonesia

This essay investigates how the degeneration of state socialist regimes and the transition to market-Leninist political economies in China and Vietnam have shaped institutional arrangements governing welfare and its stratification effects. Engaging recent theoretical literature one welfare regimes, the article explores how the evolution of specific combinations of political and economic institutions in China and Vietnam has affected the production and reproduction of welfare and stratification. The common assumption that welfare regimes reflect the structured interests of dominant political and economic actors and thus serve to reproduce that regime is found to invite an excessively static perspective. Instead this essay argues that welfare regimes and stratification in contemporary China and Vietnam require an appreciation of their properties under state-socialism and how specific paths of extrication affected their degeneration and subsequent development under a new form of political economy. The essay also probes the significance of observed differences in China and Vietnam’s political structure in light of suggestions that Vietnam’s more pluralistic political system has made its welfare regime more redistributive than China’s. An alternative perspective suggests China’s wealth obviates the significance of such differences.     

The limits of feminist political intervention in Singapore

This article uncovers the strongly ideological quality in Singapore's theory and practice of pragmatism. It also points to a strongly pragmatic quality in the ideological negotiations that play out within the dynamics of hegemony. In this complex relationship, the combination of ideological and pragmatic manoeuvring over the decades has resulted in the historic political dominance of the People's Action Party (PAP) government in partnership with global capital. But in an evolving, diversifying and globalising society, this manoeuvring has also engendered a number of mismatched expectations. It has also seen a greater sensitivity and attention to the inherent ideological contradictions and socio-economic inequalities that may erode what has been a relatively stable partnership between state and capital. This article argues that Singapore's one-party dominant state is the result of continuous ideological work that deploys the rhetoric of pragmatism to link the notion of Singapore's impressive success and future prospects to its ability to attract global capital. In turn, this relies on maintaining a stable political system dominated by an experienced, meritocratic and technocratic PAP government. While this Singaporean conventional wisdom has supported the political and economic interests of the state and global capital in a period of neo-liberal globalisation, its internal contradictions and external pressures have also begun to challenge its hegemonic pre-eminence.     

DJnomics and the transformation of the developmental state

Since the Asian financial crisis, the Korean state under Kim Dae Jung has witnessed significant challenges from foreign capital as well as from organized labor. Regime transition has influenced the social and political relations between the state and big business (chaebol). The traditional developmental state has gradually eroded as the power and capacity of the state was increasingly affected by economic globalization. The Korean economy has been transformed from a traditional developmental state model characterized by a hierarchical and authoritative relationship between the government and conglomerates into the market-oriented economic model.     

Political Consequences of Welfare Regimes: Social Assistance and Support for Presidentialism in Turkey

ABSTRACT

Tackling redistributive expansion in developing countries, this paper explores broader political consequences of social assistance programmes. Drawing from the Turkish case, where social welfare expanded since the 2000s, it examines attitudes of social assistance beneficiaries towards transition to presidentialism, which was approved in a referendum in 2017, and took effect in 2018. Using the results of an original survey, it indicates that social assistance benefits played a significant role in increasing support for presidentialism, by garnering votes from opposition voters, especially those with high-risk perceptions, in return for benefits. Given the character of Turkish presidentialism, devoid of vital checks and balances, the findings reveal that incumbents can mobilise support by using redistributive instruments in the context of democratic backsliding.     

The Transformation of Urban Vegetable Retail in China: Wet Markets,Supermarkets and Informal Markets in Shanghai

The state-monopolised system of vegetable retail in socialist urban China has been transformed into a market-based system run by profit-driven actors. Publicly-owned wet markets not only declined in number after the state relegated its construction to market forces, but were also thoroughly privatised, becoming venues of capital accumulation for the market operators now controlling these properties. Self-employed migrant families replaced salaried state employees in the labour force. Governments' increased control over urban public space reduced the room for informal markets, exacerbating the scarcity of vegetable retail space. Fragmentation in the production and wholesale systems restricted modern supermarkets' ability to establish streamlined supply chains and made them less competitive than wet markets. The transformation of urban vegetable retail documented here shows both the advance that capital has made in re-shaping China's agrifood system and the constraints that China's socialist institutions impose on it. Shanghai's experience also shows that the relative competitiveness of various retail formats is shaped by the state's intervention in building market infrastructure and institutions.     

Mineral wealth and limited redistribution: social transfers and taxation in Botswana

ABSTRACT

There are palpable cracks in the Botswana economic growth success story, most apparent in the evidence of persistent and extreme inequality. This article offers new insights into the Botswana puzzle by focusing on redistributive policies – taxation and transfers – as potential mechanisms to tackle poverty and inequality. The historical analysis explores how the minimal redistributive policies reflect the interests of the elites and how these actors justify their policy decisions with reference to the needs of the poor – an important electoral constituency; and it links policy developments to social and economic outcomes where no comprehensive social security system and negligible taxations means that only the well-to-do are in positions of income security and only the most vulnerable receive some relief. Diamond-rich Botswana avoids taxing its citizens. In terms of citizen engagement and ability to pursue social justice this may be a mistake.     

CONSOLIDATING SOUTH AFRICAN DEMOCRACY: THE POLITICAL ARITHMETIC OF BUDGETARY REDISTRIBUTION

An absence of legitimacy of an economic dispensation cannotbe overcome by democratization alone. In unequal societies,new regimes also seek to increase economic legitimacy and thereforetheir own political legitimacy through redistribution. Socialspending is the most promising redistributive device availableto South Africa's new democracy to reduce racial inequalities,but there are constraints on increasing social spending or evenredistributing existing spending. To maximize political impact,spending will thus probably be concentrated on the most visibleprogrammes and concentrated in die cities. The impact on blackmaterial living standards of complete redistribution of socialspending is shown to be fairly large, but still may not satisfythe newly enfranchised. Coloureds, Indians and poorer whiteswould lose most from budgetary redistribution. As demands exceedresources, resource allocation then becomes a question of politicalarithmetic. This may assist in consolidating democracy amongsturban black ‘insiders’, but would effectively leavethe unorganized rural poor fiscally disenfranchised.     

Social capital and support for the welfare state in Russia

Few tasks are more important in a post-communist setting than rebuilding the welfare state. We study individual preferences for increasing social welfare spending to reduce inequality. Using two surveys of about 34,000 and 37,000 Russians, we show the great importance of the “bridging” type of social capital for redistribution preferences in Russia, as it precludes possibilities of cheating and free-riding on the welfare state. Instrumenting social capital with education, climate, and distance from Moscow, we deal with endogeneity concerns and also contribute to our understanding of the deep roots of social capital in Russia. We claim that social capital in post-socialist countries could help mobilize public support for redistribution even where institutions are weak.     

Neo-liberalism in post-crisis South Korea: Social conditions and outcomes

South Korea's post-war development pattern has been considered to be a developmental state model, where the basic institutional framework was the “state-banks-chaebol nexus.” Since the financial crisis of 1997, however, the country has been swiftly transformed from the developmental state model and has acquired more neo-liberal characteristics. This has been made possible through intense reforms implemented by the post-crisis South Korean government under the IMF's guidance and encouraged by domestic political, ideational, and social conditions. Among those, significant conditions for this swift transformation include chaebols' legitimacy problems, neo-liberal consensus among the domestic elite, democracy hijacked by neo-liberalism, and the role of some NGOs. As social outcomes of the transformation, we find the enlarged presence of transnational capital, increased labour flexibility, inequality and poverty, and an increasing cultural gap in the country. Huge social costs of such neo-liberal transformation necessitate an alternative path of political economy.     

Global Capital and Media Control: A Case of Joint Venture in China’s Media Market before WTO

This story covered here is an unprecedented case of foreign “takeover” of a Chinese press in the pre-WTO era. Despite the open prohibition of foreign involvement in the media sector, the grip of the central state seems futile in the face of the lure of capital. This detailed study of foreign investment in The Modern Man (TMM), a newspaper in Guangzhou, helps uncover the tension and dynamics of the process of globalization. As reflected in the case of TMM, while the lure of foreign capital does account for the reticence of local state on the ideological concerns of the centre, the party-state however, still maintains an array of leverages in containing the unwelcome foreign presence when necessary. Neither the radical view of a “powerless state”, nor the moderate views of “enabling state” alone seem adequate in explaining the reality.

Precarity,Cognitive (Non-)Resistance and the Conservative Working Class in China

ABSTRACT

Workers’ resistance is crucial to understanding how the working class respond to the growing labour precarity in post-socialist China. The labour studies literature posits that inequality and volatile capital movements increase workers’ precarity and lead to stronger labour resistance, such as strikes. However, workers’ cognition as an integral part of resistance has been rarely studied. This article examines cognitive resistance by Chinese workers from different tier cities by looking at their social trust, class identity, understanding of policies and class solidarity. Despite capital movements and precarity causing more labour unrest, it does not necessarily lead to a stronger cognitive resistance. While inequality and precarity are greater in the more developed megacities with a shifting capital favourability, workers in megacities display a more conservative cognitive resistance than those from the lower-tier cities. This study of workers’ cognitive resistance provides insight into the future of the Chinese labour movement. It argues that the working class’s current cognitive non-resistance suggests that even if a window of opportunity were to appear in the wall of state oppression, workers are not cognitively prepared to coalesce into a coherent social movement that would bring about transformative changes.     

The ‘heart’ of Eurasia? Kazakhstan's centrally located capital city

In a world still dominated by a geopolitical system of territorial states, one tool in the state- and nation-building repertoire is the strategy of moving a capital from one city to another, and to an ostensibly more ‘central’ location of a geometrically conceived territory. From Ankara to Brasília, the technique has been used in a variety of places around the world, and Kazakhstan's new capital since 1997, Astana, is one more recent iteration. Taking a Foucauldian approach to analysing political technologies of government, the author examines the strategy of the centrally located city and considers how it has been instrumental to simultaneously producing a ‘state effect’ and a ‘territory effect’ in newly independent Kazakhstan. Part of a larger mixed-methods study, this article draws on a diverse range of methods, including data from interviews, participant observation, textual analysis, focus groups and a country-wide survey.     

Globalisation and the state revisited: A view from provincial Vietnam

The article considers the changing nature of the state in an era of globalisation, exploring the impact on the state of changes in cross-border flows and the rise of private and transnational actors. Presenting data from two Vietnamese border provinces, the article paints a picture of a relatively powerful state, which appears to be extending its reach in some areas. Asking how we reconcile this with increased cross-border flows and the rise of private and transnational actors, the article suggests that where sub-national governments are less integrated in global financial architecture, and where domestic private capital has close relations with the state, the impact in terms of precipitating a diminution of state power is likely to be less. Equally, the article argues that there is a tendency in some of the literature to overstate the influence of foreign private capital and transnational institutions on the state in ways which seem inappropriate away from the capital city.     

After and Beyond Amoral Familism: The Impact of the Economic Crisis on Social Capital Italian-style

Abstract

The economic crisis that began with the great crash of 2008 has brought about a significant increase in inequality in Italy between individuals and families as well as between different geographic areas. A higher degree of inequality has had negative effects on social capital, reducing so-called bridging and linking elements of social capital while strengthening bonding elements, with a concomitant decline in civic culture. These effects can be dangerous for democracy, in so far as they lower the citizens’ trust in institutions. Since social capital is created as well as destroyed by political and social actors, a relevant question is whether these actors have had a role in transforming social capital into trust in institutions. From an analysis of the changes that have taken place in the Italian political system, it would appear that a significant segment of the political system has destroyed more institutional social capital than it has helped to create.     

Social injustice and economic dynamism in contemporary Korea

Abstract

This article examines the processes of labor market restructuring and welfare reform in South Korea since the 1997/98 crisis, arguing that the Korean state-capital complex has succeeded in effecting a substantial redistribution of income from labor to capital. This redistribution of income has played a critical role in enhancing Korea's international competitiveness and in facilitating a return to sustained growth. The principal mechanisms through which this redistribution has been achieved are the intensified exploitation of weaker sections of the proletariat and the reduction of the traditionally more protected organized sections of the workforce in major firms. At the same time, the state has strengthened welfare safety nets and sought to place concerns about structural competitiveness at the heart of the welfare regime through the promotion of vocational training. What has been most striking about the process of welfare reform, however, has been the capacity of the state to limit the growth of welfare expenditures/provision whilst simultaneously creating massive new labor market insecurities. As a result of the success of the Korean state in restructuring labor markets in order to effect a redistribution of income from weaker sections of the proletariat to capital and limiting the growth of social spending we have witnessed a marked increase in inequality since 1997. Korea's apparent success in transforming itself into a competitive, dynamic neoliberal economy must, therefore, be understood as being symbiotically linked to the intensification of inequality.     

The paradox of natural resource abundance and widespread underdevelopment in Africa

A crisis in leadership, political instability and extreme state control of natural resources has marred Africa’s economic development over the years. these negative extremities paradoxically exist amidst a copious and generous endowment of abundant and diverse natural resources. State actors dominate the political scene, clamping down on any form of opposition to their hegemonic rules. they appear to seek to change leadership, often unconstitutionally, not for the wider benefit of the society, but to satisfy their selfish and narrow interests. The illegitimacy of the mode of change generates feelings of insecurity that compel such leaders to want to perpetuate themselves and their cronies in office. In order to finance their costly security requirements or manage the crisis they might have created, they fall back on state resources, exploiting them unsustainably to generate income and foreign exchange without channelling such earnings towards state development. this article reviews the development trajectory and challenges facing political transformations in post-independence Africa. Africa’s development stalemate is blamed on the tragedy of self-inflicted and constantly erupting political crises; failure to raise investment capital from abundant natural resources; and limited capacity of states to provide the necessary infrastructure for development. Continued reliance on development partners for development capital has not yielded desired results.     

Let's stick together: Understanding Africa's secessionist deficit

Over the last 40 years, Africa has experienced relatively fewersecessionist conflicts than most other regions of the world,even though it is otherwise plagued with political violenceand its countries tend to display a higher prevalence of manyof the factors usually associated with separatism. After empiricallyestablishing Africa’s secessionist deficit, this articlereviews the few existing explanations for it before articulatinga theory which singles out the benefits to African regionalelites (and those who depend on them) of weak sovereign states.In Africa as elsewhere, the article argues, regional leaderscan be expected to capitalize on local grievances and promotesecessions if the potential rewards of a separatist state, inthe absence of international recognition, outweigh the potentialrewards associated with control or partial control of institutionsof the sovereign national state. What distinguishes Africanelites is the relatively greater material returns to sovereigntythat they face. Given the continent’s poverty, the undiversifiednature and commodity dependence of its economies, and the relativelack of accountability of state power, Africa offers a significantmaterial premium to internationally recognized sovereignty,tilting the odds for elites in favour of staying within thestate, even if they do not immediately benefit from power atthe centre. The article then tests the argument against actualAfrican cases of secession, showing that they are usually afunction of variations in the relative rewards of sovereignty.In conclusion, it argues that Africa’s weak sovereigntyequilibrium has contributed to its failure to develop.