Affirmative action in South Africa : its policy status against the background of development theory and racially-based economic inequality

D.Com. (Economics)At the beginning of 1990, a sequence of events took place which were to provide the initiative for this study. The unbanning of South Africa's major black political organisations shifted the focus ofthe public debate to negotiations on a democratic constitution. Regional issues, such as had been debated with substantial fervour in KwaZulu/Natal, became negligible when contrasted with the realisation that South Africa's two dominant political forces had agreed upon the necessity for a ceasefire. Until 1990, these two groups, namely the National Party (NP) and the African National Congress (ANC) had been engaged in a bitter and long-standing war. In using dictatorial political powers to suppress access by blacks, coloureds and Indians to universally accepted basic human rights, the NP committed acts of institutionalised violence, which led to increasing resistance amongst disenfranchised South Africans and unparalleled international ostracism. The ANC was not a passive victim ofthe policies of statutory racial segregation and had, since especially the rnid-1970s, embarked upon a strategy of armed resistance as part of its endeavours to focus the attention ofdecision-makers within South Africa and abroad on the plight of the disenfranchised majority. An agreement was reached to end armed hostilities shortly after the unbanning of the ANC, but it was clear that an ideological war would continue to be fought between the ANC and the NP well into the future. Central to the debate on determining fundamental conditions for inclusive participation in constitutional negotiations would be the issues of guarantees for minority rights; the relative roles of the state and the market in economic processes; and the degree to which policies aimed at redressing racially-based income inequalities need to be pursued by government. The intractable nature of differences of opinion on these issues, combined with the new focus on constitutional negotiations at national level, led to the discontinuance of the activities of the KwaZulu/Natal Indaba, which had sought a political compromise for the region amongst all representative groups. At the time, the author had been managing a socio-economic research unit within the Indaba's secretariat. Contact had been established earlier with an organization launched in Durban in February 1990 with the specific objective to encourage affirmative action policies, mainly amongst organisations in the private sector. This organisation, the National Economic Initiative (NEI), had its roots in the group of American-owned companies that had been signatories to the Sullivan code of employment practices