Not about rules, but about good deals: The political economy of securing inclusive capital investment and transformation in South African mining

dc.contributor.advisorLevy, Brian
dc.contributor.advisorBazillier, Remi
dc.contributor.authorNxele, Musawenkosi
dc.date.accessioned2023-09-11T14:47:39Z
dc.date.available2023-09-11T14:47:39Z
dc.date.issued2023
dc.date.updated2023-09-11T14:47:10Z
dc.description.abstractThis PhD studies the imperative of racially transforming South Africa's economy in a way that spurs the growth of capital investment that is socially and locally inclusive. Part I explores the role of bargains among elites (“deals”) in facilitating investment. It studies deals as the basis of credible commitment and as the “arena of action” in the context of a relatively robust rule of law. What kind of deals produce capital investment and transformation, and what kind of deals produce predation and isomorphism? Using process tracing methodology, the research traces deal in platinum mining between 1994 and 2018. Part II examines the extent to which this investment is socially inclusive in alleviating local poverty, creating local employment, and reducing local inequality. This part relies on individual level census data of 20 million observations and geocoded mining data of over 400 mines to evaluate the local impact of mining investments on income poverty, employment, and inequality between 1996 and 2011. The study finds compelling evidence that “deals are the basis of credible commitment” to securing investment. The rule of law alone is important but insufficient as it leaves “residual uncertainty” for investors. The evaluation of the impact of mining investments on local communities suggests a qualification, at the local level, of the “resource curse” hypothesis. Mining brings benefits in terms of income poverty alleviation and employment. However, the high-low cycles of commodity price booms create employment volatility and exacerbate inequality. Mining investments inherently involve trade-offs that can be moved in net positive directions with good deals between business and the state, and local communities. The research thus contributes to the literature on property rights and investment, state-business relations and development, and natural resource governance for development.
dc.identifier.apacitationNxele, M. (2023). <i>Not about rules, but about good deals: The political economy of securing inclusive capital investment and transformation in South African mining</i>. (). ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/38527en_ZA
dc.identifier.chicagocitationNxele, Musawenkosi. <i>"Not about rules, but about good deals: The political economy of securing inclusive capital investment and transformation in South African mining."</i> ., ,Faculty of Commerce ,School of Economics, 2023. http://hdl.handle.net/11427/38527en_ZA
dc.identifier.citationNxele, M. 2023. Not about rules, but about good deals: The political economy of securing inclusive capital investment and transformation in South African mining. . ,Faculty of Commerce ,School of Economics. http://hdl.handle.net/11427/38527en_ZA
dc.identifier.ris TY - Doctoral Thesis AU - Nxele, Musawenkosi AB - This PhD studies the imperative of racially transforming South Africa's economy in a way that spurs the growth of capital investment that is socially and locally inclusive. Part I explores the role of bargains among elites (“deals”) in facilitating investment. It studies deals as the basis of credible commitment and as the “arena of action” in the context of a relatively robust rule of law. What kind of deals produce capital investment and transformation, and what kind of deals produce predation and isomorphism? Using process tracing methodology, the research traces deal in platinum mining between 1994 and 2018. Part II examines the extent to which this investment is socially inclusive in alleviating local poverty, creating local employment, and reducing local inequality. This part relies on individual level census data of 20 million observations and geocoded mining data of over 400 mines to evaluate the local impact of mining investments on income poverty, employment, and inequality between 1996 and 2011. The study finds compelling evidence that “deals are the basis of credible commitment” to securing investment. The rule of law alone is important but insufficient as it leaves “residual uncertainty” for investors. The evaluation of the impact of mining investments on local communities suggests a qualification, at the local level, of the “resource curse” hypothesis. Mining brings benefits in terms of income poverty alleviation and employment. However, the high-low cycles of commodity price booms create employment volatility and exacerbate inequality. Mining investments inherently involve trade-offs that can be moved in net positive directions with good deals between business and the state, and local communities. The research thus contributes to the literature on property rights and investment, state-business relations and development, and natural resource governance for development. DA - 2023 DB - OpenUCT DP - University of Cape Town KW - credible commitment KW - natural resource governance LK - https://open.uct.ac.za PY - 2023 T1 - Not about rules, but about good deals: The political economy of securing inclusive capital investment and transformation in South African mining TI - Not about rules, but about good deals: The political economy of securing inclusive capital investment and transformation in South African mining UR - http://hdl.handle.net/11427/38527 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/38527
dc.identifier.vancouvercitationNxele M. Not about rules, but about good deals: The political economy of securing inclusive capital investment and transformation in South African mining. []. ,Faculty of Commerce ,School of Economics, 2023 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/38527en_ZA
dc.language.rfc3066eng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.subjectcredible commitment
dc.subjectnatural resource governance
dc.titleNot about rules, but about good deals: The political economy of securing inclusive capital investment and transformation in South African mining
dc.typeDoctoral Thesis
dc.type.qualificationlevelDoctoral
dc.type.qualificationlevelPhD
Files
Original bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
thesis_com_2023_nxele musawenkosi.pdf
Size:
8.59 MB
Format:
Adobe Portable Document Format
Description:
License bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
license.txt
Size:
0 B
Format:
Item-specific license agreed upon to submission
Description:
Collections