Post-apartheid state business relations in Johannesburg: a sub-national perspective on the 21st Century developmental state

ABSTRACT

This article discusses prospects for the building of a developmental state in South Africa by examining relations between the local state and business. Its main aim is to assess how far the country has come in creating a state with healthy state business relations typical of successful developmental states. Using the case study method with information sourced through interviews and a review of key documents, the study utilises the democratic developmental state theoretical model that advocates the state’s extensive engagement with all actors. The model also recognises the role of subnational government. Informed by this model, it places particular focus on relations between the state and business in the city of Johannesburg since 2000 until 2016. It finds the association between the local state and business to traverse two worlds. In the one world, the city is a developmental subnational state relating well with business and building partnerships to address challenges. In another, there is compromised autonomy of the city’s administration and its collective development goals. Benefits are not widespread and there is no prevalent sense of collective developmental solidarity, casting doubt on South Africa’s progress towards building a developmental state.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 For purposes of this article, the three terms are used interchangeably.

2 There is a school of thought among the developmental state pantheon that believes authoritarianism played a critical role in countries that developed faster. While this was the case in Korea for instance, there were countries like Malaysia which managed to achieve rapid development under democratic conditions. Therefore, the building of a developmental is not only possible under authoritarian conditions alone.

3 Evans makes the same point regarding Korea after a coup, where the leader of the military, Park Chung Hee ‘realised that he needed to harness private entrepreneurship and managerial expertise to achieve his economic goals … ties between the regime and the largest chaebols (conglomerates) became so tight’(1992, 157).

4 Based on an interview, the author conducted with officials at the City of Johannesburg.

5 Interview conducted as part of the research by the author.