On the pitfalls of a developmental state

Abstract

Economic transformation has always been the cornerstone of the governing party since it assumed power in 1994. The notion of a developmental state has since the early 1990s been used as a catch-all phrase for the African National Congress (ANC) thinking on economic and social policies. There is even a subcommittee within the ANC called the Economic Transformation sub-committee, which is seen as the custodian of the ruling party's vision for socio-economic change, as well as offering broad guidelines for a range of policies that have to do with the economy. Over the years since the ANC came into power in 1994, the idea of building a developmental state has continued to serve as an organising principle to frame the nature of change desired by the government. It is a notion that is conceptually ambiguous and lacking in precision with respect to policy application.