The Role of South Africa in Global Structural Policy

This research paper, published by the South African Institute of International Affairs in 2006, analyzes South Africa's position as a regional hub and its role in global structural policy. It examines the country's economic integration, socio-economic challenges, environmental policies, and its evolving approach to global governance and trade, specifically focusing on its relations with Germany and other developing nations.

• South Africa's economy is characterized by a high reliance on natural resources, with mining and beneficiated natural resources (such as processed ores, basic chemicals, and wood products) making up a significant portion of exports. While manufactured exports accounted for over 60% of total exports in 2002, this increase was partly due to the decline of gold exports rather than robust growth in manufacturing.
• Since 1994, South Africa's economic policy has transitioned through three phases: 'growth through redistribution' (1994-1995) focused on the Reconstruction and Development Programme (RDP); 'Economic orthodoxy' (1996-2001) characterized by the Growth, Employment and Redistribution (GEAR) strategy and fiscal rectitude; and a 'Keynesian kick-start' (2002-present) combining demand stimulus with supply-side economics.
• South Africa faces severe socio-economic polarization and inequality, often ranking near the top of global Gini coefficient rankings. This is marked by chronic unemployment, particularly among the black population, and a 'two economies' dynamic where one is globalized and the other marginalized.
• The country is highly vulnerable to climate change, with risks including desertification, reduced river flows, and water scarcity, with demand expected to exceed available supplies by 2025. To address energy needs and carbon emissions, the government is investing in the Pebble-bed Modular Reactor (PBMR) project and exploring biomass and natural gas alternatives to reduce reliance on coal.
• South Africa's foreign policy emphasizes 'African issues', South-South cooperation, and multilateralism. It seeks to act as a 'bridging role' between the industrialised North and the developing South, though it often prioritizes African solidarity, sometimes leading to contradictions with its stated commitment to human rights (e.g., in its approach to Zimbabwe).
• In global trade governance, South Africa focuses on reducing agricultural subsidies in the WTO Doha round and securing market access for intermediate manufacturing and services. Regionally, it has moved toward a new Southern African Customs Union (SACU) agreement (July 2004) that cedes some sovereignty over trade policy to supranational institutions.
• Relations with Germany are strong, with Germany serving as South Africa's third largest source of FDI and fourth trading partner. The two countries maintain a Bi-national Commission to oversee cooperation in defense, environment, science, technology, economics, and development finance.
• The document identifies three future scenarios for South Africa: 'Malaysian manna' (optimistic growth and stability), 'Italian Imbroglio' (muddling through with endemic governance issues), and 'Zimbabwean Vortex' (a nightmare scenario of political instability and economic meltdown).

APA

Draper, P., Wheeler, T., & Alves, P. (2006). The Role of South Africa in Global Structural Policy. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2008/04/Internetfassung-DisPaper-7.2006-Draper.pdf

Chicago

Draper, Peter, Tom Wheeler, and Phil Alves. The Role of South Africa in Global Structural Policy. South African Institute of International Affairs, 2006. https://saiia.org.za/wp-content/uploads/2008/04/Internetfassung-DisPaper-7.2006-Draper.pdf.

Wikipedia

{{cite report |last1=Draper |first1=Peter |last2=Wheeler |first2=Tom |last3=Alves |first3=Phil |title=The Role of South Africa in Global Structural Policy |publisher=South African Institute of International Affairs |date=2006 |url=https://saiia.org.za/wp-content/uploads/2008/04/Internetfassung-DisPaper-7.2006-Draper.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{draper2006role, author = {Draper, Peter and Wheeler, Tom and Alves, Phil}, title = {{The Role of South Africa in Global Structural Policy}}, institution = {South African Institute of International Affairs}, year = {2006}, url = {https://saiia.org.za/wp-content/uploads/2008/04/Internetfassung-DisPaper-7.2006-Draper.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }