The Manufacturing Sector and Regional Trade in a Democratic South Africa

Kaplinsky, Raphael (1992). The Manufacturing Sector and Regional Trade in a Democratic South Africa. In: Maasdorp, G. G. and Whiteside, A. eds. Towards a post-apartheid future: political and economic relations in Southern Africa. London, UK: Palgrave Macmillan.

DOI: https://doi.org/10.1007/978-1-349-11958-5_6

Abstract

This paper considers the context in which industrial policy can be formulated in a democratic South Africa.1 It reviews South Africa’s past manufacturing performance, identifying its relative failure by comparison with other middle-income Economics; considers the causes for this poor performance; discusses the context in which industrial policy can be formulated after transition to democratic rule; and isolates four major factors which will have to be considered. These are the role to be played by the State, the importance of a small-unit focus to strategy, the necessity of embracing specific policies to foster the growth of indigenous technological capability, and the new opportunities opened in developed-country export markets. This is followed by a more detailed discussion of trade prospects in regional markets, especially within the PTA.

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