Economic restructuring in South Africa: the debate continues

Abstract

This paper explores the issue of economic restructuring in South Africa by means of a critical overview of recent work in the policy arena. Specific attention is paid to policies proposed by radical thinkers such as higher wages, intervention in the capital market, and to the problem of business confidence. The paper goes on to explore the idea of ‘embedded autonomy’ and to argue that greater attention needs to be paid to the institutional aspects of interventionist policy proposals. Unless South Africa can develop meritocratic and efficient state institutions with good relations with the private sector, strongly interventionist strategies are unlikely to be successful.