Abstract
M.A.
Of our age, perhaps the two defining terms have been “the state” and “globalisation”, each of which is constantly changing and adapting as the international community has to deal with an increasing multiplicity of actors in the field of international relations. Witness not only the rise of supra-national state units such as the European Union, but also the increased importance of sub-national state units such as provinces and cities in international relations. At the same time it is possible to distinguish between various types of globalisation such as political and economic globalisation. Each of these types of globalisation influences the state in a variety of ways. For example, political globalisation has led to the rise in importance of supra-national and sub-national state units. As for economic globalisation, this study assesses the influence of one particular feature of economic globalisation namely FDI on the South African state and its sub-national state units, particularly Gauteng and Johannesburg. In order to assess the influence of foreign direct investment on the structure of the South African state, the study provides a theoretical framework of globalisation and the state. This theoretical framework is then built upon by incrementally discussing the structure and economic policies of the central South African state before assessing the structure and economic policies of Gauteng and Johannesburg. Particular attention is paid to the economic responses of the central South African state, Gauteng and Johannesburg to a particular manifestation of economic globalisation, namely foreign direct investment. In this regard the study discusses the precepts of the central state‟s policy known as “Growth, Employment, and Redistribution” as a means of attempting to attract foreign direct investment to South Africa. Within the context of Gauteng and Johannesburg the study assesses how these sub-national state units have adopted local economic development policies as a means to attract foreign direct investment. At the same time it is necessary to consider how these local economic development policies fit into the neo-liberal precepts of central government‟s economic policies.
It was noted above that it is possible to distinguish between various types of globalisation such as political and economic globalisation. Each of these types of globalisation influences the state in variety of ways. This study assesses the influence of one particular feature of economic globalisation namely FDI on the South African state and its sub-national state units, particularly Gauteng and Johannesburg. In order to assess the influence of FDI on the South African state, Gauteng and Johannesburg, the study assesses how each of these three spheres of the South African state are attempting to attract FDI through the adoption of
economic policies and other policies (such as GEAR and LED programmes). This study will assess the possibility of whether Gauteng and Johannesburg should be given greater autonomy and flexibility to attract FDI. The question which the study thus seeks to answer is: how does FDI (as a feature of globalisation) influence the structure of the South African state and the relationship between the central South African state and its sub-national state units?