Systems of Accumulation and the Evolving MEC

The limitations of the Developmental State Paradigm were discussed in the introductory chapter to this volume. This chapter offers an alternative approach to the DSP through use of the notion of systems of (capital) accumulation and its specific application to South Africa’s evolving political economy, which we characterise as the ‘Minerals-Energy Complex’ (MEC) following Fine and Rustomjee (1996)

The Relevance of Financialization for African Economies: Lessons from South Africa

While research has highlighted that financialization critically affects African economies and societies through its effect upon commodity prices, international value chain participation, and land, there are few accounts of the systemic and macroeconomic importance of financialization for African societies; the big exception being work on South Africa. The South African case, despite its historical peculiarities, has a broader relevance for African economies since the country combines many characteristics typical especially for the sub-Saharan region – including resource richness, a persistent trade deficit, and a volatile exchange rate – while its financialization trajectory is ahead of other African economies because financial liberalization was pioneered as early as the late 1970s. This article summarizes the effects of financialization on South Africa, holding a warning for other African countries which have increasingly engaged in financial liberalization since the 1990s. Furthermore, we detail how financialization has facilitated and furthered corruption in South Africa, in turn undermining democratic processes. Thus, we contribute to research on financialization on democracy, a field hardly considered in the context of developing countries

Convalescent plasma in patients admitted to hospital with COVID-19 (RECOVERY): a randomised controlled, open-label, platform trial

SummaryBackground Azithromycin has been proposed as a treatment for COVID-19 on the basis of its immunomodulatoryactions. We aimed to evaluate the safety and efficacy of azithromycin in patients admitted to hospital with COVID-19.Methods In this randomised, controlled, open-label, adaptive platform trial (Randomised Evaluation of COVID-19Therapy [RECOVERY]), several possible treatments were compared with usual care in patients admitted to hospitalwith COVID-19 in the UK. The trial is underway at 176 hospitals in the UK. Eligible and consenting patients wererandomly allocated to either usual standard of care alone or usual standard of care plus azithromycin 500 mg once perday by mouth or intravenously for 10 days or until discharge (or allocation to one of the other RECOVERY treatmentgroups). Patients were assigned via web-based simple (unstratified) randomisation with allocation concealment andwere twice as likely to be randomly assigned to usual care than to any of the active treatment groups. Participants andlocal study staff were not masked to the allocated treatment, but all others involved in the trial were masked to theoutcome data during the trial. The primary outcome was 28-day all-cause mortality, assessed in the intention-to-treatpopulation. The trial is registered with ISRCTN, 50189673, and ClinicalTrials.gov, NCT04381936.Findings Between April 7 and Nov 27, 2020, of 16 442 patients enrolled in the RECOVERY trial, 9433 (57%) wereeligible and 7763 were included in the assessment of azithromycin. The mean age of these study participants was65·3 years (SD 15·7) and approximately a third were women (2944 [38%] of 7763). 2582 patients were randomlyallocated to receive azithromycin and 5181 patients were randomly allocated to usual care alone. Overall,561 (22%) patients allocated to azithromycin and 1162 (22%) patients allocated to usual care died within 28 days(rate ratio 0·97, 95% CI 0·87–1·07; p=0·50). No significant difference was seen in duration of hospital stay (median10 days [IQR 5 to >28] vs 11 days [5 to >28]) or the proportion of patients discharged from hospital alive within 28 days(rate ratio 1·04, 95% CI 0·98–1·10; p=0·19). Among those not on invasive mechanical ventilation at baseline, nosignificant difference was seen in the proportion meeting the composite endpoint of invasive mechanical ventilationor death (risk ratio 0·95, 95% CI 0·87–1·03; p=0·24).Interpretation In patients admitted to hospital with COVID-19, azithromycin did not improve survival or otherprespecified clinical outcomes. Azithromycin use in patients admitted to hospital with COVID-19 should be restrictedto patients in whom there is a clear antimicrobial indication

The Evolution of Manufacturing in the Gauteng City-Region: From De-Industrialization to Re-Industrialization?

The South African economy has long been dominated by what Fine and Rustomjee (1996) call the “Minerals-Energy Complex” (MEC). Much South African ‘manufacturing’ has been connected to this capital intensive MEC core of the economy, with manufacturing outside the MEC core relatively weak. This chapter situates manufacturing in the Gauteng City-Region within the overall development of the MEC, South Africa’s distinctive system of accumulation. It situates the discussion also within the ongoing debate about the significance of manufacturing, and whether or not manufacturing should be regarded as an economic sector of particular importance, or ‘engine of growth’. If regarded as such, deindustrialization is of specific concern. Empirically, the chapter identifies and traces the evolution of the most important sectors of manufacturing within Gauteng. It demonstrates the concentration of employment and of capital stock in particular sectors and both declining manufacturing employment and year on year declining fixed capital investment. De-industrialization in the Gauteng City-Region has national significance because of the economic importance of the region. Whilst policy discussion reflects this, the specific importance of manufacturing can easily be lost amongst many competing policy objectives

Radical Perspectives on Industrial Policy

This chapter surveys, evaluates, and develops radical perspectives on industrial policy. We examine the differences between mainstream and heterodox approaches to economic and industrial development, and we look at the similarities and differences between structuralist and Marxist approaches. We argue that Marx’s concern is not with sectors but with value and the overall circuit of capital. Radical industrial policy foregrounds class and capitalism, and integrates a distinctive conception of the state. We argue further that radical industrial policy operates at two levels, the analytical and the prescriptive, and we use the climate crisis to illustrate our argument. Radical industrial policy has broad objectives, including fundamentally altering productive structures and dynamics towards labour-centred development. Finally, we briefly survey some experiences of radical industrial policy, loosely dividing them between statist, co-operative, and participatory planning approaches. We also reflect on the limits of industrial policy, especially under globalized and financialized capitalism

Financialised accumulation and the political economy of state capture

Unlike most other assessments of state capture which report on the shocking revelations coming out of the Zondo Commission of Inquiry, this article instead considers the political economy of South African corruption. The author reminds us that South African  corruption is not new, but a product of highly exploitative colonial and later apartheid era accumulation. Ashman attempts to explain why corruption is endemic in postapartheid South Africa and concludes that it emerged out of changes in the leadership of the liberation movement who sought the creation of a black elite or black capitalism

Financialisation of the South African economy: impact on the economic growth path and employment

The financialisation of the South African economy and its impact on economic growth and employmen