Backward Capitalism in Rural South Africa: Prospects for Accelerating Accumulation in the Eastern Cape

The forces of production in rural South Africa and the performance of the agricultural sector form the central theme of this paper. It shows that the long‐term lack of dynamism of capitalist development in South Africa as a whole is reflected in and is responsible for failures of rural development. These failures have resulted in acute suffering, not least in Eastern Cape province, where barriers to dynamic capitalist growth remain very high. The paper concludes with proposals for promoting more rapid wage employment growth and capitalist development and for protecting vulnerable rural residents from the worst consequences of such development. The proposals are contrasted with the conventional wisdom in South Africa, especially the rural development strategies proposed by the current government.     

Large and entangled: Italian business groups in the long run

This article, by using both a qualitative and quantitative approach, focuses on large business groups (BGs) in Italy. It provides a methodology of analysis which aims at re-constructing the boundaries and the relevance of BGs in a national economy in the long-run, identifying a country-specific taxonomy of both their forms and the rationales (logics) for their existence. By adopting an original methodology, that is the network analysis, and by using a large and comprehensive dataset (Imita.db), this article also provides some proxy measures of the relevance of the largest BGs in the Italian economy, something which has never been done before in Italian business history research. The analysis clearly shows the persistence of large and entangled BGs in the Italian economy. It confirms that this particular form of business organisation is neither limited to the less developed countries, nor is simply a second best functional substitute of the multi-divisional form diffused in the liberal market economies. Finally, this article also suggests a research itinerary which can also be fruitfully applied in business history to other specific cases.     

The Chilean Agrarian Transformation: Agrarian Reform and Capitalist 'Partial' Counter-Agrarian Reform, 1964–1980

This article, which is published in two parts, is an empirical analysis of the Chilean agrarian reform (1964–1973) and 'partial' counter-agrarian reform (1974–1980). Its aim is to explain and interpret their logic and the changes they brought to Chile's agrarian property regime in particular and Chilean life in general. Chile's agrarian reform was successful in expropriating (under the Frei and Allende administrations, 1964–1973) the great estates of the hacienda landed property system. The capitalist 'partial' counter-reform then redistributed them (under the military, 1974–1980). CORA, the country's agency for agrarian reform, expropriated and subsequently redistributed 5809 estates of almost 10 million hectares, or 59 per cent of Chile's agricultural farmland. A large amount of the expropriated land (41 per cent) benefited 54,000 peasant households with small-sized family farms and house-sites. The rest of the farmland benefited efficient and competitive commercial farmers and agro-business and consolidated medium-sized farms. Of central concern is the role of the agrarian reform and subsequent 'partial' counter-reform processes in fostering the transformation of the erstwhile agrarian structure of the hacienda system toward agrarian capitalism. The redistribution of the agricultural land previously expropriated made possible the formation of an agro-industrial bourgeoisie, small commercial farmers, an open land market and a dynamic agricultural sector. While, however, under military rule, a selected few benefited with family farms and became independent agricultural producers, a large majority of reformed and non-reformed campesinos were torn from the land to become non-propertied proletarians in a rapidly modernizing but highly exclusionary agricultural sector.     

Stories of Rural Accumulation in Africa: Trajectories and Transitions among Rural Capitalists in Senegal

This paper analyzes primary qualitative evidence from life histories of rural capitalists in contemporary Senegal. Various common themes in the declining literature on rural capitalism in Africa are discussed with reference to the specific individual trajectories of rural farm capitalists in Senegal. The themes include the emergence of rural capitalism in the context of protracted, uneven and gradual rural social differentiation and the various processes that have accompanied it; the condition of 'entrepreneurship' in such changing historical contexts; the symbiotic relationship between different spaces (loci) of accumulation, especially trade, transport and farming and the historical context in which they take place; the crucial but sometimes contradictory role of the state in spurring or constraining rural capitalist accumulation; and the variety of 'idioms of accumulation', which reflect transitions and synthesis between non-capitalist and capitalist forms of labour surplus appropriation at the level of individual capitalists, despite some uniformity in the general logic of capital and the spread of capitalist relations of production and exchange. The paper also discusses the methodological power and limitations of oral narratives as a method to gather evidence on long-term processes of agrarian change and accumulation in rural Africa. Finally, the life histories shed some light on the origins of rural capitalists and show that there is a combination of instances of 'capitalism from above' and 'from below' but that no dominant pattern can be clearly discerned at least in the space of one or two generations.     

Chile's Neoliberal Agrarian Transformation and the Peasantry

In the mid–1970s, following the early shift to neoliberalism, the Chilean rural sector was restructured dramatically, becoming one of the most successful cases of non–traditional agricultural export (NTAE) growth. However, many analysts fail to discuss the problematic nature of Chile’s integration into the global market. Underpinning this rapid growth of NTAEs is the exploitation of cheap peasant labour, especially seasonal female wage workers. This article examines the elements of continuity and change in agrarian policy since the transition to democracy in 1990. In particular, it presents the policy debate on the future of the peasantry: capitalization or proletarianization? The dilemma that policy makers face over maintaining high rates of NTAE growth while at the same time attempting to reduce poverty and income inequalities are also highlighted. The Chilean case can be considered as paradigmatic insofar as it exhibits key characteristics of the classical capitalist transformation of agriculture: the emergence of a new class of dynamic agricultural entrepreneurs, renewed proletarianization and land concentration, and intensification of social differentiation.     

Dominant modes of economic coordination and varieties of firm internationalization support

International Business research has focused attention on the role of the home country in firm internationalization. While this has produced insights as to how home countries condition firm internationalization, significant gaps remain. We focus on two. First, research on how and why countries differ in their internationalization support is limited. Second, research on how countries differ in the extension of their internationalization support into host countries is scant. Addressing these gaps, we develop a conceptual paper and put forward nine propositions. We theorize how differences in the dominant mode of economic coordination in home countries – in market-, business-, and state-led economies – relate to variation in their internationalization support. Our framework is relevant to developed and emerging economies.     

The Chilean Agrarian Transformation: The Pre-Agrarian Reform Period (1955–1965)

Today Chilean agriculture has recovered from years of diminishing returns. The same arduous work carried out by a declining workforce has suddenly attained higher productivity and, therefore, achieved economic growth. This article suggests that Chile has undergone a series of fundamental changes in the last quarter of the twentieth century, which have intensified its capitalist development. It analyses the agrarian structure of the hacienda system during the period immediately before the agrarian reform, looking particularly at the transition to modern capitalism, agricultural growth and the land question. It argues that before the implementation of the agrarian reform, the country had not finished its transition to modern capitalism due to the persistence of the antiquated hacienda system. It further suggests that the land reform process – implemented and consolidated from 1964 to 1980 – permitted the culmination of the long-postponed transition to modern capitalism and gave rise to the ascendancy of an agro-industrial bourgeoisie and an export-oriented agriculture integrated into the world economy.     

Oscillating between a relationship-based and a market-based model: The Salim Group

As institutional transitions in emerging economies intensify, the basis for competition is theorised to move from relationship-based to market-based. An in-depth analysis of the strategy of the Salim Group, one of the largest ethnic Chinese conglomerates in the Asia-Pacific region, supports the view that the strategy of this conglomerate can be understood as moving between the extremes of crony capitalism (the relationship-based model) and the existing Western norms for multinational business (the market-based model). Both models are essential for its success, but the former, relationship-based model seems more important in early times and the latter, market-based model becomes more significant during recent institutional changes. We also find evidence that the strategic movement between those extremes takes the form of irregular oscillatory dynamics.