L4 - SA - Debt In The Middle Class

Question 1

South Africa Background

Answer 1

SA is in a time of internal colonialism: where one group of society was colonised by another group of society.

It is also the end of the Apartheid and the country is trying to make a transition to democracy. The people who they are looking too to leads this new transition is the ‘new middle class’- ‘most intelligent, have the most expertise, and people in strong positions’ - however they are also in massive debt.

Their morality is shaped by (fictive) kinship but they have an obligation to help others to get to this middle class lifestyle.

Question 2

The New Black Middle Class In SA

Answer 2

Post apartheid in SA between 1990 - 2000, there was a transition to a new democracy in which the new black middle class comes to economic and political leadership.

Market researchers created a name for the new black middle class based on a stereotype “The black diamonds”.

It suggested that purchase of luxury items was the norm but researchers wanted to know why they were buying these goods.

They established an identity for themselves through consumption but didn’t like being called ‘black diamonds’ as they felt it was racially driven and described someone who sells out to non-African values.

The problem is that you couldn’t just match their consumption to their identity, there was more too or.

Question 3

Middle Class Spending Habits

Answer 3

James and Bahre understood their identity when looking at their debt as well as consumption.

James finds that they spend prudently (e.g. On family) not decadently (e.g. On luxury goods). They make a distinction between ‘good debts’ (family) and ‘bad debts’ (luxury goods).

Repayments are a problem. Some take out large loans for their family, but when these cross with short term loans they get in trouble.

James says that the suburb residents spend most of their time and money on their larger extended families many of whom still live in the township (slum). They feel obliged to send money to their family but this spirals out of control and creates lots of debt.

Question 4

Comaroff And Comaroff (Early 1990’s)

Answer 4

They did a study on post-apartheid SA and found extraordinary example of violent economic and social actions.

They tried to speak about it but didn’t do a full analysis on it and were condemned for not focusing on the social relations before looking at deep psychology and these extraordinary cult like activities that are happening.

Question 5

Eric Bier Studies In The Slums

Answer 5

Bier first of all, looked at how people make their accommodation.

• The family pull their resources together and in doing so keep their houses for many generations and this means that family and friends intermingle.
• If families want to privatise their house, they take out loans from the bank. However if they can’t repay the loans, then the bank can’t repossess their house, because the history of continuous ownership is so long and complex. The neighbourhood comes to like the family and this fights against the Bank repossessing. The economy and property relations is becoming ambiguous.

PROBLEM - credit associations: historically people pulled their resources together but in contemporary society people now out their resources into a pool of money and each week someone would get the pool. This type of credit association was mostly with women and was gained through a type of kinship.

Question 6

The Zolani Club

Answer 6

• Fictive Kinship
• Fictive birthdays where a women would receive money and gifts from members. The most would come from members of her fictive family since each lady in the group was part of a fictive family.
• The money they received would be used for consumption purposes and sharing money across their kin (real kinship pressure was high)
• You would have to reciprocate the value of gifts you received which often caused major stress and burden as well as financial strain and debt.
• witchcraft I.e. Jealousy, is high within the industry.