1. Haggard (1990) seems to acknowledge
that social democratic forms of representation may develop in the NICs
and that these could bring about a more humane growth path. Similarly,
O’Donnell and Schmitter identify the logical possibility that democratic
deepening may result in “socialization”: a combination of social democracy
where citizens may help decide the actions institutions take, and economic
democracy, providing “equal benefits to the population.” (1986:71)
However none of these authors has developed these possibilities further.
2. In an earlier study, Przeworski gives three reasons why concertation is not feasible in less developed countries: unions represent only a small proportion of workers; they are not strong and centralised enough; and employers are hostile to them while government is ambivalent. (Przeworski, 1991:186).
3. We have developed this view in two other papers, Adler and Webster (1995) and Adler and Webster (1997).
4. The loose association of labour federations participating in NEDLAC, consisting of COSATU, the National Council of Trade Unions, and the Federation of Unions of South Africa.
5. Although government debt as a ratio of GDP was increasing rapidly in the last years of the National Party government, there was never any suggestion that the government was unable to service the debt. Furthermore, the prominence of the debt was to a large degree a product of the policies of both the NP and ANC governments. Most debt is owed to domestic creditors, such that servicing is exacerbated by the high interest rate regime pursued by the Reserve Bank and endorsed by government. In addition, much of the debt is created by the government pension funds. Since 1991 - in a concession to white civil servants fearful that their positions would be threatened by an ANC government - the NP agreed that these would operate on a fully-funded basis. The concession forced the government to borrow to cover its obligations, and thereby increased the public debt burden. (Naidoo, 1998) It is within the power of government to ease these conditions dramatically and rapidly by moderate changes in monetary and fiscal policy.
6. The Lund Committee for Child and Family Support - set up by the Department of Welfare - recommended that the government restructure the existing child welfare grant. Where 300,000 white, coloured and Indian mothers had received R700 per month, the committee advocated a universalistic system open to all mothers (including previously excluded African women), thereby expanding the number of beneficiaries to 3,000,000 but reducing the monthly grant to R100. (Lund, 1998:16) Baskin has proposed a monthly grant to all South Africans - a citizenship grant providing a minimum income - as one way of meeting the demands for extending social welfare. (Baskin, 1997)
7. According to Baskin, a dual or fragmented labour market already exists in many sectors, such as the building and clothing industries, where “people doing similar jobs might earn as little as 20% against those covered by bargaining council agreements or those living in urban areas.” (Business Day, 1998a)
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