Central problems of economic development of the Transkei

Abstract

In this article the argument has been advanced that the economic development of the Transkei is being retarded by a number of important barriers or factors which act and re‐act upon one another in such a way as to prevent development from getting underway on a broad front. The main factor is the lack of inducement to invest, which results from the limited size of the local market on account of the low level of per capita income. The level of per capita income is determined by productivity, which in turn depends largely on the availability of capital goods as a result of past investments.

In the case of the Transkei, the circular relation between the above barriers is reinforced by the high rate of population growth, the high dependency burden, outward migration, the leakage of purchasing power, the system of land tenure and traditional attitudes and practices.

Provisional reference only, has been made to possible ways and means of removing the barriers and of breaking the circular relation between them, since it is felt that a lot more empirical research and work needs to be done within the Transkei before definite and detailed strategies and programmes are suggested.

Reference has also been made to the process of urbanisation which is underway in the Transkei, and which could have positive effects on development. The social disruptive effects of a too rapid rate of urbanisation have, however, also been stressed.