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Neoliberalism, Shallow Dreaming and the Unyielding Apartheid City

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Contradictions of Neoliberal Planning

Part of the book series: GeoJournal Library ((GEJL,volume 102))

Abstract

Since coming to power in 1994, the governing African National Congress has expressed a clear wish for swift transformation of the segregated, unequal and inefficient urban landscape inherited from the apartheid regime. These (1) progressive driving ideas on ‘spatial engineering’ have, however, by and large run contra (2) the prevailing wishes and actions of property developers Property developers. The result of this is a glaring disjuncture in the actual/experienced urban fabric between the two. In this chapter an analysis of this disjuncture is undertaken, focusing on two of the metropolitan municipalities in the country. While telling a unique South African story, the chapter connects with the international literature on the impact of neoliberalism on planning.

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Notes

  1. 1.

    The most recent of these endeavours, is the ‘Local Government Turnaround Strategy’ of the Department of Cooperative Governance and Traditional Affairs (2009). This strategy seeks to, as its name suggests, restore confidence in the local government sphere, re-establish links between local politicians, officials and communities, and ‘turn around’ the prevailing condition of weak service delivery prevalent in many municipalities in the country.

  2. 2.

    Urban LandMark, which is primarily funded by the UK Department for International Development (DFID), has as its mission, ‘to ensure greater access for the poor to urban land markets’

  3. 3.

    Public transport was largely developed in colonial and apartheid South Africa to transport Black South Africans to and from ‘their dormitory townships’ and the ‘White-owned and controlled’ Central Business Districts and ‘White suburbs’ (Oranje, 1999). While bus and train systems were also developed for ‘White use’, it was primarily targeted at ‘lower income Whites’ and White school children.

  4. 4.

    The most recent country survey of the OECD indicates that South Africa ’s economy has one of the lowest labour absorption ratios in the world – a meager 40% (OECD, 2010).

  5. 5.

    By the narrow definition used by the Central Statistical Office (Stats-SA) unemployment has hovered around 26%; others estimate it to be as high as 40% (Bhorat & Oosthuizen, 2005; Desai, 2005, p. 6; The Economist, 2001, 2005; OECD, 2010).

  6. 6.

    These figures vary in accordance with the use of different definitions and recording techniques (see Desai, 2005). Already 10 million South Africans out of a population of 47 million were living on government grants and transfers in 2005 (see Economist, 2005) and it said to have risen to around 15 million at the beginning of 2011. According to Desai (2005, p. 6) nearly 80% of the population relied on someone else in the household as a source of income in 2005.

  7. 7.

    A name given to areas that can cover large tracts of land in which African communities were congregated as part of the Apartheid rulers’ wish to prevent the African population from ‘coming to town’. While these spaces have high densities they have very few of the benefits of urban life and living and are more akin to urban ghettoes than rural villages.

  8. 8.

    In 2003, the ratio of private security guards to the police force in South Africa was between 5 and 7 to 1 (Shearing & Wood, 2003, p. 402). In North America it was between 2 and 3 to 1 at the time (ibid.).

  9. 9.

    This was provided for in the Local Government: Municipal Systems Act, 2000.

  10. 10.

    The largely rural Northern Cape Province passed a new Act, the Northern Cape Planning and Development Act in 1998, but none of the others did so in anticipation of a/the new national Act.

  11. 11.

    It is estimated that as a result of the recession, approximately one million jobs were lost in South Africa between late 2008 and early 2011 (South African Cities Network, 2011).

  12. 12.

    The City of Johannesburg is South Africa ’s most populous municipality (The Presidency, 2006; South African Cities Network, 2011). It also has the largest economy of the 283 municipalities in the country. The City of Tshwane is fourth in terms of both population and size of economy (ibid.).

  13. 13.

    This is not only the smallest of the nine provinces in the country in terms of geographic area, but also the most populous, and the province with the strongest economy (OECD, 2010). Both the City of Johannesburg and Tshwane are located in this province.

  14. 14.

    It needs to be noted that both the disregard for the ‘forward planning’ instruments and the lack of integration between this function/process and the regulatory side of the land use management system, was not new (Oranje, 1998b). These were also strong features of the pre-1994 period (ibid.).

  15. 15.

    This was confirmed in a personal interview with Stephen Berrisford, a planning and planning law consultant, who was closely involved with the writing of the DFA in the early to middle-1990s.

  16. 16.

    The ANC, even before coming to power agreed to an independent Reserve Bank, signing up to the GATT, repaying apartheid debt and to drop nationalisation from its rhetoric (Desai, 2005; see Bond, 2008).

  17. 17.

    As noted by Studlar (2003, p. 40), the reason for the ‘meteoric rise’ of the ‘Third Way’ was its vagueness and its promise of providing answers to challenges that old/existing ideologies were not able to do. In practice, in South Africa, this vagueness meant that market forces and players won, as they were far more powerful than the softer, more collectively-minded ethos and actors of the ‘Third Way’ variety.

  18. 18.

    While sanction-busting (selling and buying products and services underneath the radar) was a major economic activity during the apartheid years, the country, and many of its products had achieved pariah status and were excluded through comprehensive sanctions (Polakow-Suransky, 2010).

  19. 19.

    While the White minority was far wealthier than the Black majority, it was also vastly smaller by a ratio of around 8 to 1. In addition to this, the economy had not been built for the whole population, but for the White minority and a small number of Asians and so-called Coloureds – not more than about 10 million people in total.

  20. 20.

    Outstanding debt incurred during the Apartheid years amounted to R86.7 billion in 1993 (The Economist, 1999). By 1999, the country’s debt had grown to R366 billion, absorbing a fifth of the national budget for servicing (ibid.). Continued servicing of the national debt, and the need for further loans, demanded a functioning economy. Default was with these demands, not an option.

  21. 21.

    This strategy was prepared with involvement of World Bank experts and economic models developed and used by the Bank (see Department of Finance, 1996: Acknowledgements and Appendix 16).

  22. 22.

    The same is said to have been the case in the former East Germany after unification, with lack of confidence regarded as a major hurdle to development in the area (see Peel, 2010).

  23. 23.

    According to a 2001-report in the Economist (2001), ‘… by the standards of other countries, South Africa has lured relatively little foreign direct investment: $32 per head in 1994–1999, compared with $106 for Brazil, $252 for Argentina, $333 for Chile’.

  24. 24.

    The collective name for paramilitary groupings who would pop up at key points in the negotiation process to plant bombs, slaughter Black South Africans and incite ‘Black-on-Black’ violence in townships on the Witwatersrand and in rural hotbeds like the current KwaZulu-Natal.

  25. 25.

    Naomi Klein (2008, p. 200), in her book ‘The Shock Doctrine’, suggests that the De Klerk government, ‘… used a range of new policy tools – international trade agreements, innovations in constitutional law and structural adjustment programs – to hand control of those power centres to supposedly impartial experts, economists and officials from the IMF, the World Bank, the General Agreement on Tariffs and Trade (GATT) and the National Party – anyone except the freedom fighters of from the ANC’.

  26. 26.

    This is something that still haunts the country today, with any change being measured in terms of whether it will take us back to apartheid and not where it can take us – the fear of the past over-shadowing the hope for the future. It of course also becomes an easy way to silence any novel ideas or opposition to controversial proposals.

  27. 27.

    The retention of these fiscal powers ‘at the centre’ has been portrayed as a victory for the ANC during the negotiations between the ANC and the National Party in the early-mid 1990s (see Oranje, 2002). It may also have been a clever ploy by the neoliberal champions to keep a check on the State finances and provide an easy, manageable way to regulate/control the course the country c/would take.

  28. 28.

    There were a number of national initiatives with this objective in mind most notably the National Spatial Development Perspective (NSDP), but these were resisted for a variety of reasons (see Oranje & Merrifield, 2010).

  29. 29.

    Larger questions about the future of townships and the future of the Bantustans created by Verwoerd were left unattended; the only response being that ‘people are living there now and must be serviced’. The fact that so much of rural South Africa was a dead-zone, carefully chosen by the Apartheid regime because of its lack of potential, was denied.

  30. 30.

    Black settlement in South Africa was regulated from the 1890s onwards and mass removals to places of limited opportunity and potential undertaken by apartheid governments from around the 1950s (Oranje, 1998b).

  31. 31.

    This was further facilitated by a similar move towards urban governance and management and away from urban planning prevalent in many Western countries at the time – the so-called ‘New Public Management’, which was also favoured by the World Bank at the time (see Harrison, 2005; Harrison, 2006; Jouve, 2009; Seeliger and Hattingh, 2004).

  32. 32.

    The National Credit Act, 2005, also introduced another layer into the property market, as it made it far more difficult to secure a housing loan/bond by inter alia mandating Banks to be far more careful in approving bonds (Brink, 2010). This, however, also unintentionally favoured safe investments in safe areas.

  33. 33.

    Popular sentiment towards institutions in South Africa is very low, with a recent study by the HSRC showing that in 2007 only 34% of a nationally representative sample of respondents expressing confidence in their local governments (Roberts, 2008, p. 10; April, 2011; South African Cities Network, 2011).

  34. 34.

    Current discussions (2010) about a more social State (including National Health Care) do so without the equally important discussion about the nature of the economy to support and sustain it, as if the country actually underwent a transition to a new, very different economy.

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Acknowledgments

The author would like to acknowledge (1) the generous funding by Urban Landmark that made the first two studies possible; (2) the efforts of the two co-researchers, Dr Jacques du Toit and Dr Karina Landman in the first study financed by Urban Landmark (Du Toit et al., 2008); and (3) the data gathered by Melissa van der Zee and Elzette Putter (Putter & van der Zee, 2009) and Nicholas Nolte and Nico Barnard (Nolte & Barnard, 2009) for their final year Essay-studies completed under my supervision.

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Oranje, M. (2012). Neoliberalism, Shallow Dreaming and the Unyielding Apartheid City. In: Tasan-Kok, T., Baeten, G. (eds) Contradictions of Neoliberal Planning. GeoJournal Library, vol 102. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-8924-3_10

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