South Africa

How mining capitalism shaped South Africa. Two examples that show two different approaches: the diamond rush and the gold rush. During the Kimberley diamond rush, the diamond price was set by markets and there were many competing mining companies with an oversupply of the useless stone. Black labour was oppressed to keep costs low. Solution? Buy up all the companies and form a monopoly (De Beers) to limit the supply, drive the price up and increase profits. Increased profits did not benefit black labour.

By contrast, the ZAR government under Kruger fixed the gold price on the Rand. Solution? Form a single buyer of black, migrant labour (the Chamber of Mines) so that labourers could not offer their services to the highest bidder. Minimising labour costs increased profits. Second solution, foment a war to get rid of Kruger's government, free the market and ensure that profits could be repatriated.

A whole lesson in capitalism right there. This period probably did more than any other to shape South Africa's dysfunctional society during the 20th century. ( )

Dust jacket has the subtitle: 'the men who made South Africa'.