Semiperipheral industrialization in the global economy: Transition in the South African automobile industry

Abstract

Industrialization in semiperipheral countries is closely linked to restructuring of the global economy. During the postwar period, sweeping changes in the labor process, production technologies, and the spatial organization of production have significantly affected economic activities in these countries. While general trends in semiperipheral industrialization can be identified, individual countries have advanced along somewhat diverse paths, depending on their socio-economic and political geographies. This paper analyzes semiperipheral industrialization in the global economy through a case study of the South African automobile industry. It is argued that internal and external constraints in South Africa have affected the development of this industry: relatively low wages among the majority black population have restricted mass consumption while global recessions, sanctions, and disinvestment have contributed to a near-crisis situation in the automobile sector. The conclusion states that existing social and economic inequalities under apartheid must be lifted if South Africa is to attain its full industrial potential.