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Economics of Apartheid: Labor Migration in Southern Africa Four Points - So Af we see both economic migration and political refugees. - So Af center of regional economy. So African countries all tied together around So. Af. Had and has the most developed economy in Africa. Also has very poor people living in homelands and reservations. From regional pov So Af is a mini-core. - In So Af race is used to structure economy and critical to development. - economic motives are involved in development of Apartheid and the move away from Apartheid. First wanted to exploit cheap black labor. A. Regional Economy As economy develops, move away from agricultural to industrial areas. People change occupation and change location from rural to urban. (general process in industrialization) So Af in early 20th century, laws deprive black africans from land ownerships. creates rural labor force, turning independent farmers into cheap labor force. (before apartheid) More available black Africans than economy in city needs. Creates a problem. What to do with all these people? Effort to force blacks into homelands and reservations. Racial separation for economic exploitation. Some are allowed to come back to perform labor services, under certain conditions. An effort to structure multi racial society and define it spatially and allocate people. Failed experiment. Mining (gold and diamond) develops and migrant black labor is prefered. system depends on black labor at the mine site temporarily and under contract -- crosses borders. people recruited from neighboring countries. Other countries become dependent on So Af. What happens to their families? Families back on reservations. B. Gold Critical sources of foreign exchange. Key element in development of So Af Major world supplier of gold, in Cold War period, So Af supplied more than 20% of entire world gold production. Gold mining not profitable at this time. US established gold standard after WWII. Gold was established as $35 an ounce to make foreign exchange possible. Reference point for other currencies. Stabilized international monetary system for many decades. Put extreme pressure on gold production. Most countries couldn't make a profit on gold, except So Af because they used extremely cheap labor. USSR produces gold on a profit as well because of labor camps and prisoners working for free. Chamber of Mines govt institution consolidated and recruited. Workers are under group contract. Not considered individuals. Part of wages went to whoever contracted them. Prevented uncontrolled migration. Not designed to support families. Women had to support own families. Workers lived in Hostels. Not able to unionize. Efforts are suppressed. Up to 600,000 workers contracted. Highly desirable jobs, not many other better jobs. 1970's changes system. US goes off gold standard. price of gold went to $800 an ounce. Went down to 300/500 an ounce. Some rise in wages after this. Participation in this system is voluntary. Wages in mines still better than anything in agriculture or more domestic jobs. C. Borders Gold migration violates borders. Brings in people from nearby countries. So Af center of regional economy. Large amounts of nearby countries trade went through So Af neighboring countries export labor to So Af in order to get anywhere. 60% of income was sending workers under contract to So Af. 1980 SADCC - Regional development coordination thing. want to be independent of So Af. Can't do it. So Af controls transportation and economy So Af intervened militarily. Cold War struggles and opposition to Apartheid. So Af forces make raids in neighboring countries. Destabilization. Opposition to Apartheid moves across borders. So Af forces make over 200 attacks. Mozambique is trying to build socialist economy, So Af supports. Shift from foreign workers to more domestic labor in So Af. After 1970's. 40% foreign workers 60% domestic D. Townships and Homelands Two kind of migrant labor communities. Homelands migrate to rural areas. Worse off than people in townships. Townships migrate by train to urban areas This is where the black workers live. A legal effort to keep black people out of "white areas" Homelands give people national identity. Removes So Af citizenship. Industrialize in the homelands? Investment schemes. (some investment comes from Taiwan) Commuter migration. Long commutes from homelands to work. Families moving to townships, want to get out of country side. Townships outside cities grow. Vocab Oscillating Labor System - miners aren't permanently residing near mines. oscillate between mines and homes. on contract. can't bring families. then go back after contract is up. Circles: Outer: Zimbabwe, Malawi, Moz. Inner: Botswana, Lesotho, Swaz. Internal: Reservations and Homelands Chamber of Mines Hostels (very rough conditions. most basic living quarters.) Ports: Durban Port Elizabeth East London Cape Town Sadu = South Africa Development Coord. Conf. Destabilization RENAMO = Moz National Resistance Movement Homelands Industrial Development Points Commuter migration Townships Bantustans Racial Group l Expend. Per Pop. l Tchr-Stu Ratio l Under qualified Tchrs WHITE 1,385 1:18 3% INDIAN 871 1:23 17% COLORED 573 1:26 59% BLACK 192 1:42 77%