{"title":"Crony capitalist deals and investment in South Africa’s platinum belt: a case study of Anglo American Platinum’s scramble for mining rights, 1995–2019","authors":"Musawenkosi Nxele","doi":"10.1080/03056244.2022.2098009","DOIUrl":null,"url":null,"abstract":"ABSTRACT This article analyses how crony capitalism emerges as a solution to maintaining investment in platinum mining. Using a case study of platinum, the analytic narrative exploits the quasi-experimental design provided by the nationalisation of mineral rights to evaluate the relationship between mining investment and crony capitalism. Does the policy have the effects intended? This article argues that the answer is no because of the cronyism between mining capital and politically connected black elites. The institutionalisation of cronyism, coupled with low economic growth and shrinking market-based black economic empowerment opportunities, bolstered and legitimised capture of the state. The system of cronyism produced limited investment and limited black productive capital. Poor mining communities and mine workers have suffered from this cronyism, but have recently organised their power to control the operating environment, or the ‘social licence’ to operate.","PeriodicalId":47526,"journal":{"name":"Review of African Political Economy","volume":"49 1","pages":"395 - 416"},"PeriodicalIF":1.4000,"publicationDate":"2022-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of African Political Economy","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1080/03056244.2022.2098009","RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AREA STUDIES","Score":null,"Total":0}
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Abstract
ABSTRACT This article analyses how crony capitalism emerges as a solution to maintaining investment in platinum mining. Using a case study of platinum, the analytic narrative exploits the quasi-experimental design provided by the nationalisation of mineral rights to evaluate the relationship between mining investment and crony capitalism. Does the policy have the effects intended? This article argues that the answer is no because of the cronyism between mining capital and politically connected black elites. The institutionalisation of cronyism, coupled with low economic growth and shrinking market-based black economic empowerment opportunities, bolstered and legitimised capture of the state. The system of cronyism produced limited investment and limited black productive capital. Poor mining communities and mine workers have suffered from this cronyism, but have recently organised their power to control the operating environment, or the ‘social licence’ to operate.
期刊介绍：
The Review of African Political Economy (ROAPE) is a refereed journal committed to encouraging high quality research and fostering excellence in the understanding of African political economy. Published quarterly by Routledge, Taylor & Francis Group for the ROAPE international collective it has since 1974 provided radical analysis of trends and issues in Africa. It has paid particular attention to the political economy of inequality, exploitation and oppression, whether driven by global forces or local ones (such as class, race, community and gender), and to materialist interpretations of change in Africa. It has sustained a critical analysis of the nature of power and the state in Africa.
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