Ownership and Governance of Companies: Essays from South Africa and the Global South

Apartheid South Africa was often thought to run in the interests of the business elite, but 27 years after apartheid, those business interests remain largely entrenched. This is replicated across the global south, where corporate ownership tends to be concentrated in the hands of an elite. This edited volume explores why alternative corporate forms have not been pursued more vigorously and looks at ways to align corporate forms with economic and social goals.

Format: Paperback / softback
Length: 308 pages
Publication date: 25 September 2023
Publisher: Taylor & Francis Ltd

South Africa's history of apartheid has long been associated with the interests of the business elite, with the belief that the system was designed to benefit those at the top. However, 27 years after the end of apartheid, it is clear that these business interests have largely persisted. This raises the question of whether the South African business community played a role in perpetuating the status quo or if there were other factors at play.

One possibility is that the business community recognized the end of apartheid and decided to jump ship in order to protect their interests. This could have involved moving their operations to other countries or investing in new sectors that were less affected by the changing political landscape. Alternatively, the business community may have been content with the status quo, as it allowed them to maintain their control over resources and profits.

On the other hand, the ANC's mission was widely perceived to be to shift wealth and power into the hands of the whole community, particularly the black population. The party implemented various "black empowerment measures" in an attempt to achieve this goal, such as B. Affirmative action policies and land redistribution programs. However, despite these efforts, corporate ownership remains largely in white hands, and even among the black population, it is concentrated in the hands of a small elite.

This pattern is not unique to South Africa but is replicated across the global south, where corporate ownership tends to be concentrated in the hands of an elite rather than being more democratically spread. There are several reasons for this, including the power of capital, the influence of political institutions, and the lack of alternative corporate forms.

One potential solution to this problem is to pursue alternative corporate forms that distribute ownership more democratically. This could involve giving customers, employees, and local communities a greater stake in the companies they work for or invest in. For example, cooperatives or employee-owned businesses could provide workers with more control over their work and a share in the profits.

In the case of South Africa, where the majority of customers and employees are black, adopting alternative corporate forms could have helped to deliver on the ANC's mission to replace the apartheid era with a democratic one. This would have involved redistributing wealth, incomes, and power, as well as improving voting and civic rights for the black population.

This edited volume explores these questions and looks at ways to align corporate forms with economic and social goals. The chapters in this book were originally published as special issues of International Review of Applied Economics, and they provide a comprehensive analysis of the issues at hand.

In conclusion, the persistence of business interests in South Africa 27 years after apartheid raises important questions about the role of the business community and the ANC in shaping the country's economic and social landscape. While the business community may have played a role, it is clear that other factors, such as the power of capital and political institutions, have also contributed to the concentration of corporate ownership in the hands of an elite. By pursuing alternative corporate forms and distributing ownership more democratically, South Africa and other countries in the global south can work towards creating a more equitable and sustainable economy.

Weight: 453g
Dimension: 246 x 174 (mm)
ISBN-13: 9780367760120