South Africa’s form of globalisation: a continental posture paradox for insertion and dependence

The fashionable form of globalisation has perpetuated Africa’s incapacity for auto-centeredness. As promises of political and economic reforms did not materialize and as economically powerful states continued to be indifferent, most African states resorted to the strategy of self-interest for international legitimacy and faith in foreign direct investment (FDI) and aid. Departing from its portrayal as a relatively developed, competitive and civil-minded state in Africa, South Africa reinvented modernity in the hope of servicing similar self-interests. I argue that South Africa’s form of globalisation is paradoxical. While positing as a voice for the voiceless and leader of African renaissance, that country simultaneously mediated Africa’s relations for appropriation of neo-liberal principles. Occurring predominantly through political and economic liberalisation, globalisation of Africa is ‘an old story’ of insertion for dependence on foreign capital. I show that South Africa’s neo-liberal agenda in Growth, Employment and Redistribution (GEAR), as well, engendered openness to imports. Given the commonalities between GEAR and the New Partnership for Africa’s Development (NEPAD), I argue that the latter is South Africa’s instrument of ‘reintegrating’ Africa. I also illustrate that South Africa’s foreign economic policy in Africa and NEPAD are founded on the marginalisation thesis, misreading of the paradoxical operations of neo-orthodoxy globalisation in Africa and the thinking that South Africa is suffering due to its geographical association with Africa. I conclude that that country’s form of globalisation will further empty Africa of its capacity of auto-centeredness and engender openness to imports, which are yet to deliver continental recovery.     

The Movement, modernity and new International Relations writing in South Africa

Books reviewed in this article:
Korwa Gombe Adar and Rok Ajulu, Globalization and emerging trends in African states' foreign policymaking processes: a comparative perspective of Southern Africa.
Patrick Bond, Against global apartheid: South Africa meets the World Bank, IMF and international finance.
Greg Mills, The wired world: South Africa, foreign policy and globalization.
Philip Nel, Ian Taylor and Janis van der Westhuizen, South Africa's multilateral diplomacy and global change: the limits of reformism.
Ian Taylor, Stuck in middle GEAR: South Africa's post–apartheid foreign relations.     

The long shadow of apartheid: a critical assessment of heritage transformation in South Africa 25 years on

ABSTRACT

Based on insights gained from two decades of research on South African heritage and monuments, this paper critically reflects on the status quo of heritage transformation in South Africa 25 years after the end of apartheid. It assesses new directions in national heritage policy and government strategy in relation to recent developments around post-apartheid heritage and the popular demand for a removal of ‘colonial statues’, which gained impetus from the #Rhodes Must Fall campaign. It is argued that the government’s approach to heritage transformation and most notably its treatment of white minority heritage, dominated by the ‘juxtaposition model’, has had limited success. The paper illustrates how heritage and the memory of the past are entangled with socio-political and economic realities in the present, which in turn is overshadowed by the long-term effects of apartheid and impacted by global or transnational considerations, such as foreign investment and tourism.     

Asian Transnational Enterprises and Technology Transfer in Thailand

Like many of its neighbours, Thailand is increasingly interested in upgrading the technological capability of its indigenous firms through the inward investment (foreign direct investment, FDI) of transnational enterprises (TNEs). Its science and technology policies, however, remain fragmented, and they compete with regional distribution priorities. This paper examines the nature of technology transfer between Asian TNEs (Japan and the newly industrializing economies (NIEs), that is, the NIEs of Hong Kong, Singapore, South Korea and Taiwan) and Thai firms based on the responses of some 145 firms from a 2005 survey. It finds only modest levels of technological transfer in production and process technologies. Asian TNEs evaluate factor cost advantages and government incentives favourably. Logistic regressions, however, indicate that government incentives are negatively related to technology process modification between NIE subsidiaries and Thai customers. But, the technical training of Thai workers significantly increases the likelihood of Asian subsidiaries undertaking process technology transfers. Among NIE firms, the ability to import foreign skilled labour further increases the likelihood of such technological activities. Finally, forward linkages among the NIEs are positively associated with firm location in the urban agglomerations of Bangkok and Chon Buri, and, among smaller firms. Our study suggests that prevailing FDI policies have little influence on technology transfer, while technology policies that favour large TNEs work against smaller NIEs that are engaged in modest technology transfer.     

Does Spatial Clustering of Foreign Direct Investment Foster Global Production Networks? The Case of Qingdao,China

This article examines how spatial clustering of foreign direct investment (FDI) can foster a global production network (GPN). The cluster concept, in general, stressed inter-firm relations between local and regional firms while neglecting global–local linkages in the spatial context. In contrast, GPN focuses on the advantages of international production organization and governance structure but underestimates regional or localized channels of production arrangement. By integrating the conceptual framework of spatial clustering of FDI and GPN, this paper provides empirical evidence of various channels to knowledge and innovation transfer between domestic firms and foreign-invested enterprises. This paper demonstrates that the different types of linkages formation are key determinant factors for establishing cluster through contributing to local economic development.     

Is Thabo Mbeki Africa's Saviour?

Foreign relations are the main preoccupation of South African president, Thabo Mbeki. His role perception is dominated by a mission to improve the plight of Africa, and second to that, to act as the Third World's überdiplomat . Under his administration, South Africa's foreign policy has become almost an adjunct of his more holistic diplomatic pursuits. The New Partnership for Africa's Development (NEPAD) is the magnum opus of Mbeki's foreign policy, and the success or failure of this grand design for an African renaissance will determine his legacy and make or break his leadership in South Africa and in the rest of Africa. The success of his NEPAD diplomacy is a daunting task, requiring the support of his African peers, his South African constituency, and the leadership of the developed nations of the world. Dealing with these diverse elements, Mbeki's policy-making oscillates between realism and idealism, and between ideology and interests, giving the impression of a style of a prudent bureaucrat rather than that of a single-minded reformer. In the end, his diplomacy seems to founder because it fails to satisfy the contradictory demands of any of these three constituencies. However, even if NEPAD should fail as a project, its role could be that of a harbinger of a new political and economic era in Africa and the movement away from post-colonial orthodoxy.     

Agglomeration,foreign firms and firm exit in regions under transition: the increasing importance of related variety in Hungary

ABSTRACT

Related variety of economic activities is widely recognized to induce regional development; however, it is not clear how this mechanism takes place in regions that go through major structural and institutional transformation. Furthermore, foreign direct investment (FDI) is typically a major source of structural change in these areas; and we still need a better understanding on how foreign-owned (foreign) firms affect the dynamics of domestic-owned (domestic) companies. For these reasons we analyse firm-level exit in Hungarian city regions between 1996 and 2011, over the late post-socialist transition in manufacturing industries, focusing on the difference between foreign and domestic firms. Introducing ownership into the related variety calculation, we estimate the probability of firm exit with the region-level related variety calculated separately for foreign and domestic firms. Our results suggest that related variety of foreign firms decreases the probability of domestic firm exit earlier during the economic transition compared to the related variety of domestic firms. This finding supports the idea that FDI plays a formative role in regions under transition, and shows that domestic firms benefit from being in agglomerations where foreign firms are technologically related to each other.     

South Africa in the company of giants: the search for leadership in a transforming global order

South Africa, the continental economic giant and self‐appointed spokesman for African development, is finding its distinctive national voice. Emboldened by the invitation to join the BRICS grouping, its membership of the G20 and a second term on the UN Security Council, Pretoria is beginning to capitalize on the decade of continental and global activism undertaken by Thabo Mbeki to assume a position of leadership. Gone is the defensive posturing which characterized much of the ANC's post‐apartheid foreign policy, replaced by an unashamed claim to African leadership. The result is that South Africa is exercising a stronger hand in continental affairs, ranging from a significant contribution to state‐building in the Democratic Republic of the Congo and South Sudan, to an unprecedented assertiveness on Zimbabwe. But this new assertiveness remains constrained by three factors: the unresolved issue of identity, a host of domestic constraints linked to material capabilities and internal politics, and the divisive continental reaction to South African leadership. These factors continue to inhibit the country's ability to translate its international ambitions and global recognition into a concrete set of foreign policy achievements.     

促进还是抑制:中国对非直接投资的对外援助效应

论文聚焦中国对非援助与对非直接投资的不确定性关系,将援助细分为社会基础设施援助、实物资本援助、经济基础设施援助、政府和民间社会援助四种类型,构建了援助与投资的解析模型;基于中国对非洲52个国家的援助项目数和直接投资项目数,利用分位数回归方法,分别考察了中国对非援助项目总量及各类型援助在对非直接投资项目中的作用。研究发现：①中国对非援助集中在东非、南非,援助项目总数、各类型援助项目数、对非直接投资项目的空间分布具有很高的相似性。②中国对非援助类型结构相对均衡,对非援助在中国对非直接投资中发挥着先锋促进效应。其中,经济基础设施援助的促进效应强劲、稳定,且强度随分位数提高有浅U型变动特征;实物资本援助、社会基础设施援助的促进作用分别在对非直接投资项目少、中等数量下促进效果显著;政府和民间援助的促进作用不显著。③友好城市关系、出口关系与双边政治关系分别仅在中国对非直接投资项目较少、中等规模、大规模情形下显著,空间关系的影响不显著。④受援国人口规模的促进影响最清晰、最稳健;成本规避、资源寻求、受援国的投资环境质量和腐败状况的影响尚不清晰。中国在非投资有追随他国投资区位的倾向,但这一倾向仅在经济基础设施模型中显著。     

How Different are Emerging Multinationals' Views of Economic Integration in Europe? A Case Study of Korean Automobile Manufacturers' Strategic Reactions

This study is a survey of Korean automobile manufacturers in Europe, which examines the different perceptions of emerging multinationals to economic integration and the subsequent strategic reactions relating to their particular characteristics. The findings show dissimilar patterns and motivations for Korean automotive foreign direct investment (FDI) when compared to those of established multinationals, which are conceptualized as a pre-emptive strategic advance, particularly in relation to the changing ownership endowments and negative perceptions of the single European market. These finding imply that conventional variables are unlikely to be applicable to emerging multinationals and show the need to segregate them from other multinationals when formulating industrial policies and firm-level competing strategies.     

厦门特区利用外商直接投资探析

本文分四个阶段回顾了厦门利用外商直接投资推动特区经济发展的历程 ,从投资主体、投资方式、投资领域和投资规模的角度 ,分析了厦门利用外商直接投资的特点并细致考察了厦门利用外商直接投资发展迅猛的动因 ,阐述了利用外商直接投资对特区经济发展起到的推动作用 ,作者针对厦门特区再利用外商直接投资中仍存在的若干亟待解决的问题 ,提出了积极的建议     

South Africa's Current Transition in Temporal and Spatial Context

This article analyses South Africa's current postapartheid transition in the light of earlier transformations of its social and economic order. The first of these prior transformations is the abolition of slavery and the shift to liberal capitalism, which took place in the early nineteenth century. The second is the rapid industrialization of the late nineteenth and early twentieth centuries. Each of these transformations, as well as the current transition, is explained as being partly the outcome of a broad shift in capitalist practice, innovated in the metropoles of the global economy. Due to South Africa's situation within global economic networks, each of these shifts, at different times, raised the threat of a dislocation in South Africa's prevailing social order. However, each prior transformation and, it will be argued, the current transition, has been 'managed' by established elites so as to ensure minimal change to the overall distribution of privilege. This conservative 'management' of shifts in capitalist practice, it is suggested, has been facilitated through South African elites' historic engagement with cultural discourses circulating across a global terrain. In this article then, contemporary South Africa is located within both material and discursive networks which have historically influenced the country's distribution of privilege.     

Back to BASICs? The Rejuvenation of Non‐traditional Donors’ Development Cooperation with Africa

The world economy is in a state of flux. While most OECD countries struggle to minimize the damage of the global financial crisis, a few countries maintain positive economic growth rates and are thus changing global power configurations. Among the most important emerging economies for international development are the BASIC countries: Brazil, South Africa, India and China. This article analyses why these countries have rejuvenated development cooperation, what they actually do in Africa, and how they do it. It argues that the most important aspect of the rejuvenation of non‐traditional donors’ development cooperation with African economies is not the direct effects on these economies, be they positive or negative, but the potential gains that may accrue to African economies in terms of larger room for manoeuvre due to increased competition and the challenge to traditional donors’ development hegemony.     

South Africa's Transition in a Globalizing World: HIV/AIDS as a Window and a Mirror

South Africa's peaceful transition is evolving during a period in which spectacular twentieth-century achievements have greatly improved life for one-fifth of the world's population. These are being gradually eclipsed, however, by the impact of social and economic forces that relegate four-fifths of the world's population to increasingly insecure, miserable and impoverished lives. South Africa's negotiated revolution, which has allowed it to move from the pariah status of apartheid to that of a fledgling democracy, exemplifies the paradigm shift required for global progress towards a more just and peaceful world. The HIV/AIDS pandemic, a major threat to South Africa, the African continent and many others around the world, is used in this article as a window through which to view the prospects for the long-term social success of South Africa's transition. It is also used as a mirror to reflect the world in which such a disease could emerge and spread pervasively. The explanatory links between exploitative global economic forces and the emergence of threats to lives are considered, in order to illuminate new pathways towards global progress in which respect for human rights will be further consolidated through promotion of solidarity, interdependence and social justice.     

Policy Change and Policy Stasis: Comparing Swiss Foreign Policy toward South Africa (1968–94) and Iraq (1990–91)

This article investigates how concepts from the field of public policy, in particular the Advocacy Coalition Framework (ACF) initially introduced by Sabatier and Jenkins‐Smith, can be applied to the study of foreign policy analysis. Using a most similar comparative case studies design, we examine Switzerland's foreign policy toward South Africa under apartheid for the period from 1968 to 1994 and compare it with the Swiss position toward Iraq after the Iraqi invasion of Kuwait in 1990, when the Swiss government imposed—for the first time—comprehensive economic sanctions against another state. The application of the ACF shows that a dominant advocacy coalition in Swiss foreign policy toward South Africa prevented a major policy change in Swiss–South African relations despite external pressure from the international and national political levels. Actually, quite the opposite could be observed: Swiss foreign policy increased its persistence in not taking economic sanctions against the racist regime in South Africa during the 1980s and early 1990s. The ACF, with its analytical focus on policy subsystems and the role of external shocks as potential triggers for change, provided a useful framework for analyzing the factors for policy change and stasis in Swiss foreign relations toward the selected two countries.     

FDI and Local Economic Development: The Case of Taiwanese Investment in Kunshan

The extent to which foreign direct investment (FDI) can foster the long-term economic development of lagging regions remains a highly debated issue in the literature, even in the current era of intense territorial competition for mobile investment and resources. The emergence of new industrial spaces in China that have flourished through FDI offers a good opportunity to revisit the topic. Kunshan in Suzhou, China has evolved from an impoverished area into a world-class information technology (IT) centre within 25 years. FDI, mainly from Taiwan, has enabled Kunshan to gradually upgrade its economy, following a development path that has been largely based on the transplant of entire production chains from Taiwan. Local innovative strategies for attracting and increasing the embeddedness of Taiwanese FDI are also an important element of Kunshan's success. This paper discusses the positive aspects, as well as the potential costs and negative facets, of FDI in Kunshan, with the view to draw some policy lessons regarding the impact of FDI on the economic development of lagging regions.     

How green is the valley? Foreign direct investment in two Norwegian industrial towns

Since the early 1900s, foreign direct investments (FDIs) have greatly affected Norwegian society, especially peripheral communities. This article analyses how transnational corporations (TNCs) use territory down to the local level, and how this complex relationship between firms and spaces is shaped by attributes related to the TNC and the characteristics of the local economy. An extensive literature discusses different types of effects and spillovers, such as vertical supply linkages and spin-offs, but theoretical explanations of outcomes are more difficult. The literature links positive as well as negative outcomes to local conditions and to the investment motives of the entity making the FDI, but says little about how these vary with types of business, communities and national economies, and how these interactions generate different outcomes. We conclude that FDIs have different abilities to transform an area. We argue that FDI can trigger path-dependent dependency when it is dominated by economic capital and path-dependent development when it consists of a balance of economic capital, social networks and knowledge. This variation in the effects of FDI is illustrated by an empirical analysis of two industrial towns in Western Norway, one with natural resources and the other with intangible technology resources.     

CONSIDERING THE SOURCE: DOES THE COUNTRY OF ORIGIN OF FDI MATTER TO ECONOMIC GROWTH?*

ABSTRACT It has long been surmised that firms controlled by different countries may have unequal effects on the host economies in which they locate. By looking at the seven major source countries of foreign direct investment (FDI) in the United States, we provide empirical evidence that the state growth effects of FDI differ by source country. We attribute these differential growth effects to the relative differences in factor endowments between the source country and the state. The implication of this result is that technology transfer, believed to be the engine of economic growth, becomes more costly the more dissimilar the endowments.     

India's rise in Africa

India's rise in Africa has been largely overlooked, despite the important implications of the growing presence of Indian corporations and a rise in New Delhi's political ties with the continent. Not only are Indian actors providing much‐needed investment and capital, but Indo‐African connections represent a further important diversification of Africa's international relations, something which reflects a major development for the continent. Indian activity in Africa may be said to constitute a middle ground between China's profit‐maximizing and largely statist approach and the much‐resented intrusive conditionalities associated with western policies. It is evident that India's growing activity in Africa has the potential to help African companies become more efficient by exposing them to competition, new advances in technology and modern labour skills. African governments could potentially use the opportunity of an increased Indian corporate presence in Africa as sources of appropriate technology, skills and advice for economic development. However, if not handled correctly, any goodwill that India possesses in Africa will quickly be squandered and/or India will become just another actor in Africa. It is up to Africans to negotiate with Indian actors to ensure that the benefits accrued from Indo‐African ties are evenly shared and that Indian interest in the continent, alongside that of others, may help to serve as a catalyst for economic revitalization. The key issue is how African leaders can seek to leverage newfound Indian investment and interest in Africa so that Africa's place in global trade networks becomes more proactive and beneficial to the continent's citizens.     

Passports,Citizenship, Residency and Asylum: The Meanings of Decolonisation in Lesotho

In late colonial Basutoland and early independence Lesotho, the issue of who could access citizenship rights and passports became increasingly important. Political refugees fleeing apartheid South Africa took up passports on offer in the territory to further their political work. Basotho residents also took up passports in increasing numbers as a way of safeguarding their economic, social and political rights on both sides of the border. The lure of a Citizens of the United Kingdom and Colonies (CUKC) passport drew refugees to Basutoland in the early 1960s, but it was South Africa’s decision to leave the Commonwealth in 1961 that spurred many in Lesotho to formalise their imperial citizenship as well, even as independence for Lesotho became increasingly likely. The stories of those taking up papers illuminate how citizenship became a space for contestation between individuals and governments. The stories also show how the concept of the transfer of power does not accurately reflect the ways in which the sovereignty of newly independent African states, apartheid South Africa and the United Kingdom were all limited by a series of decisions made in the late colonial period. Tracing these stories helps us better understand the limitations of the term ‘decolonisation’ for reflecting the understandings and complications of citizenship in 1960s and 1970s southern Africa.