Multinational corporations, apartheid and poverty in South Africa : a case of continuous dependency?

Abstract

The degree of poverty and segregation in South Africa (SA) is inconceivable. One may say that the country represents vividly a microcosm of the North - South divide. The major objective of this exposition is to assess the hypothesis that MNCs are contributing to the aggravation of poverty of the 'Black' Population. Moreover, the impact of MNCs in enhancing segregational policies and thus facilitating the consolidation of Apartheid will be explored. These divisive measurements were pivotal in augmenting the exploitation and subjugation of the 'Black' population. This is in line with the Dependency theory. This dissertation also seeks to analyse the impact of the North on the South. This study first looks at the theoretical foundations of this aspect, and then explores the impact of the North - South divide by questioning the effects of Multinational Corporations (MNCs) on SA. This research was conducted using books and journals related to this subject mater. However, there is a gap in the literature when it comes to the effects of MNCs on SA. While there is an assemblage of theoretical discourse on the subject, there is barely any literature written on MNCs in SA. In order to help me get at least the general feeling of how MNCs are viewed in SA, interviews were conducted and referred to throughout this research. The analysis and results of this thesis show that, although MNCs may be beneficial to SA's economy - in terms of providing new technology and Foreign Direct Investment (FDI) - this does not generate the development needed for SA. Elements of continuity are seen in the development of MNCs in SA; where the country is seen in terms of profit and exploitation by the rising firms. SA relies heavily on FDI and this investment is mainly used by MNCs to This disparity occurs as a few people ('Whites' and 'Blacks') benefit while, the majority are left in misery. SA needs to depart from its ideology of segregation to a unifying spirit in order to get the domestic market going and thus ensure its own true development.