The end of the apartheid regime was a great human achievement. Yet the 1994 election of an African National Congress (ANC) majority—with Nelson Mandela as the new president—did not alter the enormous structural gap in wealth between the majority black and minority white populations. Indeed, it set in motion neoliberal policies that exacerbated class, race, and gender inequality. To promote a peaceful transition, the agreement negotiated between the racist white regime and the ANC allowed whites to keep the best land, the mines, manufacturing plants, and financial institutions. There were only two basic paths that the ANC could follow. One was to mobilize the people and all their enthusiasm, energy, and hard work, use a larger share of the economic surplus (through state-directed investments and higher taxes), and stop the flow of capital abroad, including the repayment of illegitimate apartheid-era debt. The other was to adopt a neoliberal capitalist path, with a small reform here or there, while posturing as if social democracy was on the horizon.
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