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2 The International Political Economy of Apartheid

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2 The International Political Economy of Apartheid How did the economy of South Africa develop the system of apartheid? It is an important question to ask. Not only can the answer serve as necessary background for the later chapters in this book, but, more importantly, an analytical answer can clarify considerably the prospects for success or failure of economic sanctions in the South African case. In the first part of this chapter, a historical sketch of the development of the South African economy pinpoints the formation of the system of apartheid over time and helps define apartheid as a concrete set of economic, political, and social practices. The second part continues the analysis, emphasizing the role of domestic and international forces operating in the South African economy and the implications of those forces. The Development of Apartheid: A Historical Sketch The system of apartheid in South Africa is unique in the contemporary world in its use of legal, institutionalized segregation by race in order to organize society by a racial-ethnic hierarchy at every level. Any attempt to analyze this social order must come to grips with the question of how such an arrangement could develop and sustain itself. At the outset let me borrow from Merle Lipton a definition of apartheid that is sharp and clear. She has identified four defining characteristics that separate apartheid from arbitrary developments of various discriminatory practices: First, it is the hierarchical ordering of the whole social, economic and political structure of South African society on the basis of statutorily defined race. . . . Secondly, apartheid involves systematic political and economic discrimination against all blacks, but particularly against Africans. Thirdly, it involves segregation of the races not only politically and economically but also socially, particularly in housing and social services, including education and health care. Fourthly, apartheid is the 5
© 1989, Lynne Rienner Publishers, Boulder, USA

2 The International Political Economy of Apartheid How did the economy of South Africa develop the system of apartheid? It is an important question to ask. Not only can the answer serve as necessary background for the later chapters in this book, but, more importantly, an analytical answer can clarify considerably the prospects for success or failure of economic sanctions in the South African case. In the first part of this chapter, a historical sketch of the development of the South African economy pinpoints the formation of the system of apartheid over time and helps define apartheid as a concrete set of economic, political, and social practices. The second part continues the analysis, emphasizing the role of domestic and international forces operating in the South African economy and the implications of those forces. The Development of Apartheid: A Historical Sketch The system of apartheid in South Africa is unique in the contemporary world in its use of legal, institutionalized segregation by race in order to organize society by a racial-ethnic hierarchy at every level. Any attempt to analyze this social order must come to grips with the question of how such an arrangement could develop and sustain itself. At the outset let me borrow from Merle Lipton a definition of apartheid that is sharp and clear. She has identified four defining characteristics that separate apartheid from arbitrary developments of various discriminatory practices: First, it is the hierarchical ordering of the whole social, economic and political structure of South African society on the basis of statutorily defined race. . . . Secondly, apartheid involves systematic political and economic discrimination against all blacks, but particularly against Africans. Thirdly, it involves segregation of the races not only politically and economically but also socially, particularly in housing and social services, including education and health care. Fourthly, apartheid is the 5
© 1989, Lynne Rienner Publishers, Boulder, USA
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