Manufacturers and the Formulation of Industrial Policy in 1920s South Africa

Abstract There are two broad views on the policy role played by manufacturers during the first decades of Union. The influence of manufacturers has either been regarded as insignificant, or they have been held responsible for the narrow protectionism of the post-1924 Hertzog government. This article demonstrates that both judgements are unfair, and that the policy the manufacturers worked with and helped to shape before 1924, was, in many ways, very positive. Within the restrictions of the racial exclusiveness dominant at the time, it was based on a relatively broad and inclusive nationalism, which underpinned the co-operation and support essential for promoting entrepreneurship. The state saw its role within this framework as providing as much assistance to manufacturers as possible, while keeping the long-term needs of the nation firmly in the forefront. In contrast to the idea that manufacturers increased their influence after the 1924 regime change, the paper demonstrates that the opposite occurred, a development that had negative long-run consequences for South Africa.