The Union of South Africa: Economic Problems in a Multiracial Situation

• Author: Sheila T. Van der horst
• DOI: 10.1177/000271625529800109
• Published date: 01 March 1955
• Date: 01 March 1955
• Subject Matter: Articles

The Union of South Africa: Economic Problems
in a Multiracial Situation
By SHEILA T. VAN DER HORST
C ONTACT between black and white is in a state of economic and social
has been more far-reaching and
transition, but there is no agreement,
sustained in the Union of South Africa
even among the politically dominant
than in any other part of southern Af-
whites, as to the desired goal, let alone
rica. Today the livelihood of all the
as to the path to be followed.
Union’s inhabitants is dependent in some
Economic development has been lim-
degree upon the world economy, upon
ited both by the response of the indige-
industrial specialization and trade. One
nous peoples to the stimuli introduced
would go far to find one of its in-
by white traders, missionaries, settlers,
habitants, black or white, who does not
and governments and by the social and
want, and in some measure obtain, the
political structure established by these
products of modern industrial processes.
newer groups.
Economic forces have
led to the growth of a common system
AN ECONOMY IN TRANSITION
of production, and the great majority of
The transformation from a predomi-
adult men in all racial groups have been
nantly rural economy, largely organized
drawn into a Western-market economy
on a subsistence basis, has taken place
and are, temporarily or permanently, in
during the last century. A hundred
paid employment in mines and factories,
years ago many of the white pastoral
on commercial farms producing spe-
farmers scattered through the interior
cialized crops, in transport, commerce,
produced little for sale, while among
the professions, public services, and do-
the African tribes the family was the
mestic employment. But although the
unit of production and consumption, and
whites have welcomed the Africans as
there was little specialization and trade
laborers they have feared the indigenous
beyond the family group.
tribes, in early times as a military threat
The development of mining and the
to the struggling white outpost, and to-
consequent growth of markets in the
day as a potentially hostile black pro-
mining towns and the ports which sup-
letariat. Moreover, as the Africans have
plied them began an agrarian as well as
become accustomed to mining and in-
an industrial revolution.
Adjustment
dustrial work, groups of white workers,
to the new circumstances has been made
fearing competition, have combined to
unusually difficult by the heterogeneous
protect their vested interests. Limits
composition of the population, varying
have thus been set to the incorporation
so greatly in culture, race, and language.
of nonwhites, and particularly Africans,
To the struggle for survival in a poorly
into the industrial structure.
In all
endowed environment has been added
industries and undertakings the labor
strife between conflicting claimants to
force is racially mixed, but members of
land. Conflict and competition sharp-
the different racial groups are not em-
ened by cultural, color, and linguistic
ployed indiscriminately.
Throughout
differences have, as yet, prevented the
the economy, employment continues to
development of a socially and economi-
conform to a general pattern originating
cally coherent society.
South Africa
in the fact that from the outset the
71

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72
whites have provided the initiative, skill,
they are called throughout southern Af-
and capital, and the nonwhites most of
rica, number 21/2 million. They com-
the manual labor.
prise descendants of the original Dutch
As a result of the initial reluctance of
East India Company servants and set-
the Africans quickly to change their
tlers and later immigrants of European,
way of life and become full-time wage
and predominantly British, origin. The
laborers on the mines and in the towns
Africans, locally known as Natives or
and the subsequent reluctance of the
Bantu, number 81/2 million. They first
whites to accept Africans as fellow citi-
came into permanent contact, and re-
zens, the system of labor migration con-
current conflict, with the white settlers
tinues to permeate the economy. Fail-
some hundred and fifty years ago when
ure to appreciate the full significance of
the eastward dispersal of white settle-
the developments taking place and of-
ment met the southwestward expansion
ficial attempts to maintain the status
of the African tribes in the hinterland
quo have prolonged the transition and
of the present town of Port Elizabeth,
aggravated the difficulties of social ad-
over four hundred miles to the east of
justment. It has been too little realized
the colony’s headquarters at Cape Town.’
that methods of production cannot be
The Colored people, who number a little
isolated from other aspects of culture
over a million, form a separate popula-
and that the introduction of new tech-
tion group. They are of mixed blood,
niques is not compatible with the pres-
for the most part the product of inter-
ervation of old ways of life. Change
marriage and concubinage. Their fore-
has been at once too fast and too slow.
fathers were the slaves imported from
Consequently, the economy presents a
the Dutch East Indies and other parts
curiously mixed and patchwork picture
of Africa during the regime of the
with sharp contrasts, inconsistencies,
Dutch East India Company, the Hot-
and contradictions.
tentots who grazed their cattle at the
Cape at the time of early settlement,
POPULATION
and the white officials, settlers, and
With an area of some 473,000 square
sojourners at the Cape, once known as
miles, the Union of South Africa is
the &dquo;Tavern of the Seas. 11 4 The Col-
equal in size to the four states of Cali-
ored people are concentrated in the
fornia, Arizona, Utah, and Nevada. Its
southwest around the area of early white
population numbers 12112 millions, in-
settlement, although there are small
cluding migrant workers from neighbor-
groups throughout the Union and most
ing territories.’ The population is usu-
towns have a few Colored families; 90
ally classified into four different &dquo;racial&dquo;2
per cent live in the Cape Province.
groups. The whites, or Europeans as
The fourth population group is the
Indian or Asian, numbering some 366,-
1
The Union draws some hundreds of thou-
000. Descendants of indentured labor-
sands of migrant laborers from neighboring
territories. The
ers
High Commission Territories
imported from India during the latter
of Basutoland, Bechuanaland Protectorate, and
Swaziland, in particular, which are under the
3
See H. M. Robertson, "150 Years of Eco-
political control of Great Britain, are eco-
nomic Contact between Black and White,"
nomically interdependent with the Union.
South African Journal of Economics, Vol. II,
Labor is drawn from them in the same way
No. 4 (December 1934), p. 409.
that it is from the Native Reserves within
4
J. S. Marais, The Cape Coloured People,
the Union.
(London: Longmans, Green and Company,
2
I use the term as it is customarily used in
1939), pp. 9-13; Sheila Patterson, Colour and
South Africa without any implication of scien-
Culture in South Africa (London: Routledge
tific correctness.
and Kegan Paul, 1953), Chap. II.

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73
part of the nineteenth century to work
TABLE 1-PERCENTAGE OF POPULATION
IN URBAN AREAS
on the sugar plantations on the Natal
coast and of traders who followed,
they are concentrated in Natal and
have since been debarred from entering
the other provinces of the Union except
by special permission, nowadays rarely
given. A small number of Indians,
largely traders and market gardeners,
are scattered through the Transvaal and
Cape Province. Of the Indian popula-
tion, 82 per cent is in Natal, 13 per cent
way from the rural areas to the towns
in the Transvaal, and 5 per cent in the
to supplement the meager agricultural
Cape Province. The Orange Free State
production or simply to join their men-
has not permitted Indians to settle there.
folk. The number of African women
In 1951 the Africans formed 67 per
in urban areas has increased more than
cent of the population, the whites 21,
sevenfold in forty years, from less than
the Colored 9, and the Indians 3. These
100,000 in 1911 to 762,000 in 1951. De-
proportions have remained almost con-
spite the increased migration of women
stant over the last fifty years, the high
and the increase in the number of Afri-
birth rate in the nonwhite groups hav-
can urban families, in 1946 there were
ing been counteracted by a high death
185 male Africans in urban areas for
rate.
every 100 females, as compared with a
masculinity rate of 97 for the European,
Townward
92 for the
movement
Colored, and 111 for the In-
dian population. The unbalanced com-
The most marked development in re-
position of the urban African population
gard to the structure of the population
in the major towns and the accompany-
has been the townward movement of
ing excess of women, children, and old
population during the last forty years.
people in the rural areas have far-reach-
Table 1 indicates the proportion of the
ing social and economic consequences.
population enumerated in towns and
villages at successive censuses.
NATIONAL INCOME AND ITS
It will be noticed that the townward
DISTRIBUTION
movement began first among the whites.
For the African population these figures
The economic development of the
are not a true indication of permanent
Union has not proceeded at an even
urbanization because large numbers of
pace nor have modern techniques and
the Africans in urban areas are more or
methods of...