This path-breaking, provocative examination of apartheid shatters the myth that the South African government supports both apartheid and free enterprise. Walter E. Williams conclusively demonstrates that apartheid is the result of anti-capitalism or socialistic efforts to subvert the operation of market forces.
Apartheid is shown to be a system designed to protect some interest groups from the demands of the free market while preventing others form competing and profiting from capitalism. Specifically, Williams asserts that the free play of market forces has historically been understood as the enemy of white privilege and demonstrates that apartheid has played a key role in subverting market forces. He traces South Africa's contempt for market forces from 1900, when Jan Christian Smuts, later to become prime minister, proclaimed, "It is ordained that we [Afrikaners], insignificant as we are, should be amongst the first people to begin the struggle against the new tyranny of capitalism."
Williams's compelling and accessible analysis begins with a discussion of the evolution of apartheid. After describing how legalized discrimination evolved and was sustained, he asserts that the very existence of restrictive labor laws suggests that, without them, white managers would hire blacks. Although wage and workplace regulations are a powerful force of racial discrimination, Williams shows that the South African government also had to implement many other measures, such as tariffs, licensing and vendor regulation, to force businesses to acknowledge white privilege.
Williams sees business protest and contravention of apartheid as evidence of strong market forces seeking to override apartheid ideology. He concludes that whatever strengthens market forces and weakens government power will best serve the interest of South Africa's nonwhite population.
Economic analysis and historic evidence lead Williams to assert that economic sanctions and disinvestment in companies that do business in South Africa will not achieve any of the goals of proponents of those tactics.
Concluding that the general interests of the people of South Africa are best served by political power dispersed to local governments, freer market, and reduced government regulation of economic activity. Williams calls on South Africans to strengthen markets and to oppose centralized government power. He also urges them to be alert to apartheid in disguise. Published by Praeger Publishers. Bulk orders should be sent directly to Praeger.
Walter E. Williams is the John M. Olin Distinguished Research Professor of Economics at George Mason University and an adjunct scholar at the Cato Institute.
"Walter Williams is right: privileged groups in South Africa set up apartheid to protect themselves from competitive capitalism, and what we need now is to replace apartheid with free enterprise."
-Mangosutho G. Buthelezi, Chief Minister, KwaZulu
President, Inkatha"Bravo! At last a definitive and, for once, correct analysis of the economics of apartheid. From now on, no one bold enough to comment on South Africa can be excused for perpetuating old myths, deeply held prejudices, and unsubstantiated assumptions."
-Leon Louw, Free Market
Foundation of Southern Africa"The most important treatment of apartheid known to me."
-Peter Bauer, London School of Economics
1989/160 pp./$16.95 cloth ISBN: 0-275-93179-X
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