THE RESTRUCTURING AND PRIVATISATION TRAJECTORY IN SOUTH AFRICA: TRACING THE HISTORICAL PUBLIC POLICY ORIGINS, PURPOSE, METHODS AND GUIDELINES IN THE PRE-1994 EPOCH

摘要

Many perspectives have been propounded and written about the restructuring and privatisation reform. However, this paper endeavours to give a South African approach to the reform profoundly delving into its historical approach on the original definition, methods, factors, criteria and goals of the reform. This paper seeks to demonstrate that this reform has its origins in the apartheid government policy which was intended at strengthening and revitalising the apartheid political economy in the 1980s. The thinking that the private sector runs enterprises in a more efficient, effective, competitive and profitable way and that such an approach may be applied to the State Owned Enterprises with success in an effort to reduce government debt and improving the operational performance, attracted the then South African government into adopting this neoliberal trajectory. State Owned Enterprises compared to their private counterparts performed poorly and suffered heavy losses and ultimately drained government financially. The then South African government initiated a white paper on privatisation and deregulation in 1987 which culminated in the implementation of the restructuring and privatisation reform in South Africa. Thus, this paper posits that the privatisation and restructuring reform originated from the then South African government policy initiatives in the 1980s.