Inward industrialisation,subcontracting and the construction industry in the Western Cape

One important aspect of current government economic thinking is that of inward industrialisation. In turn, subcontracting is seen as one of the ways of promoting inward industrialisation. Further, the construction and provision of low‐cost housing is considered by many to be the most important leading sector in generating economic growth.

This paper examines the construction undustry for low cost housing tn the Western Cape, the position which subcontracting currently holds in this industry and the broader implications for inward industrialisation.

The paper is based on the results of a survey carried out in the Western Cape during 1989. The results of the survey suggest the promotion of subcontracting has some positive and some negative consequences for economic development through inward industrialisation. Some doubts are however cast on the ability of the building industry to act as a ‘leading sector’ tn the process of economic development