Book Chapter
Growth, Capital Accumulation, and Economic Reform in South Africa

This chapter argues that South Africa has failed to establish the conditions necessary to reach its growth potential despite the commencement of reform in the 1970s. Part of this is because reform was undertaken during conditions of increasing isolation under sanctions, and increasing domestic uncertainty. Moreover, racial segregation in education and labour markets, and increasing political polarisation led to a decline in social capital. The new government is capable of addressing these problems although progress has been slow.