Public policy in post-apartheid South Africa has been characterized by a mix of state regulation and ‘neo-liberalism’. This article argues that this mix is rooted in the model of economic modernity adopted in South Africa in the 1920s and 1930s, and underpinned by the institutions of a modern state. In an economy transformed by mining and subsequent secondary industrialization, the state played a central role in facilitating capitalist growth, including through the regulation of labour. I argue that, contrary to the (...) conventional understanding, the enduring characteristic of the political economy of modernization in South Africa was not so much the mobilization of cheap African labour, mostly migrants from across Southern Africa, but was rather the institutionalization of high wages and protected incomes for economic, social and political insiders. Anglo-centric institutions and conceptions of industrial and social citizenship were adapted to the colonial context in South Africa. The imperatives of both gold-led capitalist industrialization and the governance of a society in which the settler or immigrant population remained a minority required that the African population was excluded from most dimensions of this citizenship. But the institutions, discourses and ideologies associated with high wages (for citizens) continued to structure economic life in South Africa through and after the apartheid period. South Africa’s mode of economic modernization thus reflects the possibly unique interaction of a British model of economic modernization with the social, economic and political realities of a colonial society. (shrink)

South Africa's 1996 Constitution promises a measure of ‘social citizenship’ alongside formal political and legal equality. South Africa's public welfare and social policies may be less effective in ensuring social citizenship, through reducing insecurity and inequality, than those of the more established democracies, but they are far more effective than those of other ‘developing’ countries. The origins of social citizenship in South Africa lie in the early and mid-1940s, when the state first assumed responsibility for the welfare, broadly understood, of (...) all South Africans. The most significant achievement was the introduction of a universal old-age pension system. The importance of these initiatives has been largely overlooked. This has been in part because later scholars largely ignored the heterogeneity of liberal thought in South Africa in the mid-twentieth century, as followers of the ‘New Liberalism’ broke with the classical liberalism of John Stuart Mill and argued for a range of state interventions in social and economic life. In South Africa, as elsewhere, the Second World War provided a context in which revised liberal thought gave rise to major policy reforms, some of which were to survive even the election of a National Party government in 1948. (shrink)