Abstract
ABSTRACT This article analyses how crony capitalism emerges as a solution to maintaining investment in platinum mining. Using a case study of platinum, the analytic narrative exploits the quasi-experimental design provided by the nationalisation of mineral rights to evaluate the relationship between mining investment and crony capitalism. Does the policy have the effects intended? This article argues that the answer is no because of the cronyism between mining capital and politically connected black elites. The institutionalisation of cronyism, coupled with low economic growth and shrinking market-based black economic empowerment opportunities, bolstered and legitimised capture of the state. The system of cronyism produced limited investment and limited black productive capital. Poor mining communities and mine workers have suffered from this cronyism, but have recently organised their power to control the operating environment, or the ‘social licence’ to operate.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
