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    EOB Session 9

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    Diajal Hooblal
    Here are the key points about political economy in South Africa based on the information provided: - Government policy, such as the 1913 Land Act, has significantly shaped the development of industries like mining, agriculture, and manufacturing over time. - The discovery and development of natural resources like diamonds, gold, and land for agriculture were major drivers of the economy and benefited early companies/industries in each sector. - Consumers have included both domestic and international markets, while local mining companies, farmers, and financial institutions were among the main sellers and profited immensely. - Over time, as the economy developed further, a wider range of consumers and industries have emerged, though political and economic power has remained concentrated among

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    EOB Session 9

    Uploaded by

    Diajal Hooblal
    21 views28 pages
    Here are the key points about political economy in South Africa based on the information provided: - Government policy, such as the 1913 Land Act, has significantly shaped the development of industries like mining, agriculture, and manufacturing over time. - The discovery and development of natural resources like diamonds, gold, and land for agriculture were major drivers of the economy and benefited early companies/industries in each sector. - Consumers have included both domestic and international markets, while local mining companies, farmers, and financial institutions were among the main sellers and profited immensely. - Over time, as the economy developed further, a wider range of consumers and industries have emerged, though political and economic power has remained concentrated among

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    EOB Session 9 (1)

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    Here are the key points about political economy in South Africa based on the information provided: - Government policy, such as the 1913 Land Act, has significantly shaped the development of industries like mining, agriculture, and manufacturing over time. - The discovery and development of natural resources like diamonds, gold, and land for agriculture were major drivers of the economy and benefited early companies/industries in each sector. - Consumers have included both domestic and international markets, while local mining companies, farmers, and financial institutions were among the main sellers and profited immensely. - Over time, as the economy developed further, a wider range of consumers and industries have emerged, though political and economic power has remained concentrated among

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views28 pages

    EOB Session 9

    Uploaded by

    Diajal Hooblal
    Here are the key points about political economy in South Africa based on the information provided: - Government policy, such as the 1913 Land Act, has significantly shaped the development of industries like mining, agriculture, and manufacturing over time. - The discovery and development of natural resources like diamonds, gold, and land for agriculture were major drivers of the economy and benefited early companies/industries in each sector. - Consumers have included both domestic and international markets, while local mining companies, farmers, and financial institutions were among the main sellers and profited immensely. - Over time, as the economy developed further, a wider range of consumers and industries have emerged, though political and economic power has remained concentrated among

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    of 28

    Environment

    of Business
    Session 9
    12 November 2023
    Dr Michele Ruiters

    © 2021 Gordon Institute of Business Science


    A Tale of Two Cities: “It was the best of times, it was the worst of
    times, it was the age of wisdom, it was the age of foolishness, it
    was the epoch of belief, it was the epoch of incredulity, it was the
    season of Light, it was the season of Darkness, it was the spring
    of hope, it was the winter of despair, we had everything before
    us, we had nothing before us, we were all going direct to Heaven,
    we were all going direct the other way...”

    Charles Dickens, A Tale of Two Cities


    © 2021 Gordon Institute of Business Science
    The state

    © 2021 Gordon Institute of Business Science


    What makes a state?

    Territory – power over its borders and people

    BUT – what about those that don’t have territory?

    People (nation state)

    Government and the power to govern

    Sovereignty – the power the govern independently without


    interference from external interference

    Fowler and Bunck, 1996


    © 2021 Gordon Institute of Business Science
    The role of the state?

    In society?

    In the economy?

    In general?

    © 2021 Gordon Institute of Business Science


    State functions

    Governance
    Security
    Rule of law
    Public financial management
    Asset management
    Market engagement
    Infrastructure
    Human capital
    Citizen engagement
    Disaster resilience
    © 2021 Gordon Institute of Business Science
    The role of the state
    Because public administration does not occur in a vacuum but is influenced by
    the environment in which it operates, the open systems model provides the
    best option as a framework for a generic approach to public administration.

    Furthermore, the systems model allows for the exploration of needs, demands
    and desires that shape decision-making and the functions of the state while the
    generic approach refers to the totality of generic processes aimed at achieving
    predetermined goals.

    Managerial approach in the public sector - management by objectives rather


    than problems, with emphasis on short-term targets, performance appraisals,
    expenditure management for control and accountability

    Schoeman, 2007

    © 2021 Gordon Institute of Business Science


    Public administration
    “... that system of structures and processes operating within a particular society
    as the environment, with the objective of facilitating the formulation of appropriate
    governmental policy and the effective and efficient execution of the formulated
    policy”

    Theory of bureaucracy – ideal model which offered the best solution in structuring
    large-scale organisations because it contained … hierarchy, authority, division of
    labour by specialisation, employment by merit, merit judged by education,
    compensation based on performance of official functions and complex systems of
    record keeping.

    - Schoeman, 2007

    © 2021 Gordon Institute of Business Science


    Globalisation etc.

    © 2021 Gordon Institute of Business Science


    © 2021 Gordon Institute of Business Science
    Global air traffic 2008

    © 2021 Gordon Institute of Business Science


    © 2021 Gordon Institute of Business Science
    © 2021 Gordon Institute of Business Science
    Globalisation and its future

    What drives globalisation?

    Realism – Realism is unified by the belief that world politics is


    always and necessarily a field of conflict among actors
    pursuing wealth and power.

    Liberalism - Liberalism is a defining feature of modern democracy,


    illustrated by the prevalence of the term ‘liberal democracy’ as a way
    to describe countries with free and fair elections, rule of law and
    protected civil liberties.

    Is there a future for globalization?

    © 2021 Gordon Institute of Business Science


    What is real politik?

    The study of the forces that shape, maintain and alter the
    state is the basis of all political insight and leads to the
    understanding that the law of power governs the world of states
    just as the law of gravity governs the physical world. The older
    political science was fully aware of this truth but drew a wrong and
    detrimental conclusion—the right of the more powerful. The
    modern era has corrected this unethical fallacy, but while breaking
    with the alleged right of the more powerful one, the modern era
    was too much inclined to overlook the real might of the more
    powerful and the inevitability of its political influence.

    Realism + pragmatism > ideology

    © 2021 Gordon Institute of Business Science


    Realist assumptions

    State centric Classical realism – humans


    are inherently violent
    Anarchy (no supranational body to
    Neorealism – conflict due to
    control) the nature of the state

    Rationality Neoclassical realists – conflict


    from human nature, state and
    Power for self-preservation domestic politics

    Kotkin, 2018

    © 2021 Gordon Institute of Business Science


    Liberalist assumptions
    • Rejection of power politics as the only possible outcome of international
    relations; it questions security/warfare principles of realism

    • Mutual benefits and international cooperation

    • The role of international organizations and nongovernmental actors in shaping


    state preferences and policy choices
    Deudney & Ikenberry, 2018

    • Liberalism contains a variety of concepts and arguments about how


    institutions, behaviours and economic connections contain and mitigate the
    violent power of states… offers a more optimistic world view, grounded in a
    different reading of history to that found in realist scholarship.

    https://www.e-ir.info/2018/02/18/introducing-liberalism-in-international-relations-theory/

    © 2021 Gordon Institute of Business Science


    Conservatism
    Conservatism is a cultural, social, and political philosophy that seeks to promote
    and to preserve traditional institutions, customs, and values.

    The central tenets of conservatism may vary in relation to the culture


    and civilization in which it appears.

    In Western culture, depending on the particular nation, conservatives seek to


    promote a range of social institutions such as the nuclear family, organized
    religion, the military, property rights, and monarchy.

    Conservatives tend to favour institutions and practices that guarantee social


    order and that evolved gradually.

    Wiki L © 2021 Gordon Institute of Business Science


    Conservatism – attitude

    To be conservative ... is to prefer the familiar to the unknown, to prefer


    the tried to the untried, fact to mystery, the actual to the possible, the
    limited to the unbounded, the near to the distant, the sufficient to the
    superabundant, the convenient to the perfect, present laughter to
    utopian bliss.

    - Michael Joseph Oakeshott (1962), Rationalism in politics and other


    essays

    © 2021 Gordon Institute of Business Science


    Hegemons and their challengers – company
    level analysis
    What is a hegemon?

    Is its position secured in perpetuity?

    Who are the hegemons in today’s world?

    And their challengers?

    © 2021 Gordon Institute of Business Science


    Climate change and the digital
    economy

    © 2021 Gordon Institute of Business Science


    Digital economy

    © 2021 Gordon Institute of Business Science


    Climate change

    What’s the Paris Agreement?

    Is it fair?

    What is the impact of it on developing/emerging markets?

    ‘Governments will need to coordinate with subnational units, private corporations,


    non-governmental organizations, and very rich individuals. On climate change
    and many other problems, these actors are much better able than governments
    to change things at the local level’.

    Busby, 2018
    © 2021 Gordon Institute of Business Science
    Conservative approach to climate change

    © 2021 Gordon Institute of Business Science


    Political economy

    © 2021 Gordon Institute of Business Science


    Political economy of global politics

    Who owns what?

    How do they manage their


    resources?

    Relationships with
    society/community/government

    https://theculturalcourier.home.blog/2019/07/03/everyday-anthropology-political-economy/
    © 2021 Gordon Institute of Business Science
    Mining, agriculture, services in South Africa
    Mining
    • 1867 discovery of diamonds in Kimberley
    • 1886 discovery of gold on the Rand

    1910 – Union of South Africa

    Agriculture
    • 1913 Land Act

    Services – FNB 1838, Standard Bank 1862, SARB 1921

    Manufacturing – 1920s with mining

    © 2021 Gordon Institute of Business Science


    Political economy in South Africa, as an
    example
    • What are the effects of government policy on the company/industry?

    • Who are the consumers, and who are the sellers?

    • Who is profiting (or otherwise benefiting)?

    • If there is a product, what is it and how is it marketed?

    • What is the history behind this practice?

    • Who holds the power?

    • What are the important resources? Who controls them?

    • What is the relationship between the individuals? Between groups?

    • Are traditional power structures being challenged, and if so, how?

    © 2021 Gordon Institute of Business Science

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