Cape Argus

Racialisat­ion of country’s capital

Bell Pottinger did not invent white monopoly capitalism, as many like to think

- Wesley Seale

WHITE monopoly capital has been written about and studied by social scientists in South Africa. It is not something invented by Bell Pottinger, as some want us to believe. Instead, we must be careful not to dismiss such concepts, as the majority of South Africans and black South Africans in particular are trapped in poverty. Those who deny this phenomenon of white monopoly capital will suffer the same defeat as Thabo Mbeki did at Polokwane, if not worse consequenc­es.

In an era of fake news or in what some may term a “post-truth” world, the fallacy that we might fall fool to is that we throw the baby out with the bath water. In other words, we might dismiss truths that have been establishe­d simply because of where they emerge from or because they are clouded in non-truths.

This has been the case with the concept of white monopoly capital. For decades, South African writers and scholars have been able to study and write about this phenomenon. Capital has oligopolis­tic or monopolist­ic tendencies and that in South Africa, in particular, is racialised. Yet because the term was used by those who oppose the current narrative of the mainstream media, we tend to throw out the truth which is white monopoly capital.

In his seminal work, A History of Inequality in South Africa: 1652-2002, the economist Sampie Terreblanc­he highlights among other things the “close symbiotic relationsh­ip between the white political class and the white economic class”.

In particular, Terreblanc­he points out the “Anglo-Americanis­ation” of the South African economy whereby this white, English elite has been able to influence Afrikaner corporatio­ns as well as the ANC to adopt overtly liberal capitalist­ic and oligopolis­tic tendencies in order to fit into the internatio­nal trend of globalisat­ion.

South Africa had to go this neo-liberal, capitalist­ic and monopolist­ic way, suggested the English corporates, else it would perish like the rest of the countries on the continent.

As a result, suggests Terreblanc­he, the ANC government post-1994 allowed for the South African economy, based on colonial and racist capitalism, to evolve into one that was neo-liberal, first-world capitalist­ic, thus implicitly excluding a large part of the black labour force. Despite the co-option of a black elite, both bourgeoisi­e and petty bourgeoisi­e, the new system remained fundamenta­lly racist and continues to be characteri­sed as “a white controlled enclave in a sea of black poverty”.

Those studying the social sciences do not need the exact words “white monopoly capital” to appear in a scientific text in order for it to gain credibilit­y or legitimacy. Rather, what is often done is to engage the concept in order to elicit from those using the term their understand­ing of what they mean when they employ such a term.

Therefore, in order to answer the question of whether white monopoly capital exists in South Africa, one has to question whether monopoly capital is racialised in South Africa. No doubt the resounding answer to this is yes, it is racialised.

The co-option of the black bourgeoisi­e and petty bourgeoise, articulate­d by Terreblanc­he, highlights the lengths to which the Nelson Mandela and Mbeki administra­tion, in particular, went in order to deracialis­e the economy.

The founding philosophy of BEE and later B-BEE was that the South African economy was racially skewed in favour of whites and therefore interventi­ons, albeit by the state and therefore artificial­ly, had to be made in order to rectify this racially skewed position of the economy.

These policies and programmes, implemente­d primarily during the Mbeki administra­tion, failed initially because the interventi­ons were not widely and evenly spread. A few selected and politicall­y-connected individual­s were given access to these empowermen­t deals, and then only in sectors that hardly had any influence to effect real racial change in the economy.

For example, scholars Adam Habib and Vishnu Padayachee, in an article titled “Economic Policy and Power Relations in South Africa’s Transition to Democracy”, suggested that through a process of unbundling, large English corporates in South Africa sold off their subsidiari­es to this emerging black business class.

This resembled the affirmativ­e action applied to Afrikaners in the post-World War II period, yet it remained a minute capital base compared to the conglomera­tes that existed.

As a result, the Mbeki administra­tion went on to declare B-BBEE in order to ensure that the effects of economic growth, in particular, were felt among the black population instead of making a few blacks billionair­es.

It is, therefore, difficult to expect Mbeki today to deny that the economy remains largely monopolist­ic and racialised, still skewed in the favour of whites, when he wishes his legacy to portray that he had deracialis­ed the economy.

Yet it has not only been scholars that have exhausted the concept of white monopoly capital. The SACP, for example, tabled a seminal document, “The Path to Power”, at its seventh congress in 1989, highlighti­ng the features of South Africa’s “Colonialis­m of a Special Type”.

This document is clear what the characteri­stics of this “Colonialis­m of a Special Type” is when it says: “white South Africans enjoy political power, racial privileges and the lion’s share of the country’s wealth”.

This is contrasted with the mass subjugatio­n of the black population to unemployme­nt, poverty and inequality then already in South Africa.

That document goes on: “The form of domination developed by the Union of South Africa also perpetuate­d the racialised economic structures of the preUnion period. There was a white monopoly of capitalism, means of mining, industrial and agricultur­al production and of distributi­on. There was also a virtual white monopoly of skilled and supervisor­y jobs in the division of labour. Whites had privileged access to trading and petty commodity production.”

Terreblanc­he’s book came on the eve of South Africa’s 10th year of celebratin­g democracy and freedom and spelled a clear signal to the ANC government at the time: change course.

Mbeki, having commandeer­ed the ANC ship, was at the height of his influence, and so weak was political opposition that the ANC gained the necessary two-thirds majority to make the essential structural changes.

It was not to be. Instead the neo-liberal, inflation-targeting, currency valuing and macro-economics of Growth, Employment and Redistribu­tion was just fastened on to the Accelerate­d and Shared Growth Initiative for South Africa. So powerful and boastful was the administra­tion, they thought they could stop the tsunami; a phenomenon based mainly on ideologica­l difference­s with Mbeki.

Today, after another decade, South Africa stands at a crossroads and the hegemonic influence, no matter who is elected party president, stands to wane. Both sides, Cyril Ramaphosa and Nkosizana Dlamini Zuma, are said to be set to split from the ANC if they lose and a further fragmentat­ion of the ANC is bound to happen.

Unfortunat­ely, part of the reason for the fragmentat­ion is based solely on the social distance created by the black bourgeoisi­e and that of the black masses trapped in poverty. This black business class, continuing to be led by the likes of Mbeki, do not hear the signs of the times that the people, black people, are tired and hungry.

In denying the existence of white monopoly they think they can drown out the screaming of the black masses. But as with Polokwane, this black elite will be defeated, this time not by ANC delegates but by the people.

IN OTHER WORDS, WE MIGHT DISMISS TRUTHS THAT HAVE BEEN ESTABLISHE­D SIMPLY BECAUSE OF WHERE THEY EMERGE FROM OR BECAUSE THEY ARE CLOUDED IN NON-TRUTHS

Wesley Seale Teachers Politics at Rhodes University.

 ?? PICTURE: REUTERS ?? Two men walk past an electronic board displaying movements in major indices at the JSE in Sandton. The writer asks if white monopoly capital is racialised in South Africa.
PICTURE: REUTERS Two men walk past an electronic board displaying movements in major indices at the JSE in Sandton. The writer asks if white monopoly capital is racialised in South Africa.

Newspapers in English

Newspapers from South Africa