Module 20 Part 2:

Question 1

What major shift occurred in South Africa’s economic focus during the Agriculture and Mining stage?

Answer 1

The economic focus shifted from agriculture to mining due to European settlers’ interest, particularly after the discovery of diamonds and gold.

Question 2

How did diamond mining develop between 1870 and 1910?

Answer 2

Initially, small-scale claims were made by private individuals. By 1875, mining companies took over, leading to the formation of De Beers, which eventually monopolized global diamond sales.

Question 3

What were the key developments in gold mining from 1886 to 1890?

Answer 3

Gold mining began with shallow level mining, funded by diamond mining profits. It then expanded into deep level mining, requiring more capital from British and European investors.

Question 4

How did labor migration impact South Africa during the mining stage?

Answer 4

Trained workers and technicians migrated from Europe, while over 100,000 African laborers moved to the mines annually, leading to the development of migratory labor and related social issues.

Question 5

What were the urbanization trends during the Agriculture and Mining stage?

Answer 5

Cities like Johannesburg and Kimberley expanded rapidly due to mining, with significant population growth and a shift from rural farms to urban job opportunities in mining cities.

Question 6

How did infrastructure develop to support mining activities?

Answer 6

Railway lines connected Cape ports to diamond mines, roads and telegraph services improved, and financial institutions like banks and stock exchanges were established in major cities.

Question 7

What changes occurred in agricultural production during this stage?

Answer 7

There was increased demand for agricultural products like meat, wheat, and maize to feed the growing urban population, leading to expanded commercial farming and mechanization.

Question 8

“Colonialism.”

Answer 8

Colonialism is the governance of one country by another, primarily for trade benefits.

Question 9

What does it mean to “Merge” in the context of business?

Answer 9

To merge means to combine two or more companies into one unit.

Question 10

What is the “Gold Standard”?

Answer 10

The Gold Standard is a monetary system where a country’s currency value is directly tied to a specific amount of gold.

Question 11

“Imperialism”

Answer 11

Imperialism refers to the domination of one country by another through political, military, or economic power.

Question 12

Why was there a lack of capital in South Africa during the Agriculture and Mining stage?

Answer 12

South Africa had insufficient local funds due to colonial exploitation, and profits were sent back to European countries, creating a leakage in the circular flow of income.

Question 13

How did the lack of infrastructure hinder economic development in South Africa?

Answer 13

Initially, there were no roads, railways, or communication services, and significant capital was needed for infrastructure improvements to support economic activities.

Question 14

What was the impact of the shortage of skilled labour on South Africa’s economy?

Answer 14

Skilled labourers were mostly in agriculture, leading to a lack of skills for the mining and manufacturing sectors, which slowed economic development.

Question 15

How did the shortage of mine workers affect economic development?

Answer 15

Poor wages and living conditions deterred workers from the mines, and the British government imposed cash taxes, forcing African workers into migrant labour in the mines.

Question 16

What was the impact of British imperialism on South Africa’s economic development?

Answer 16

Economic activities primarily benefited the British, with African workers excluded from political and economic decisions, leading to unmotivated labourers.

Question 17

What was the consequence of the development of markets during the Agriculture and Mining stage?

Answer 17

There was an increased demand for agricultural products and manufactured goods, boosting local production of equipment, machinery, and tools.

Question 18

How did commercial farming develop during this period?

Answer 18

Farming techniques improved to meet the growing population’s needs, leading to more efficient and expanded agricultural production.

Question 19

What were the consequences of increased economic activity in South Africa during the Agriculture and Mining stage?

Answer 19

Profits and incomes from mining, agriculture, and manufacturing increased, leading to a higher GDP due to greater aggregate demand and supply.

Question 20

How did the development of transport impact South Africa’s economy?

Answer 20

Railways connected interior towns to coastal harbours, and improved roads facilitated trade and the movement of goods.

Question 21

What were the consequences of harbour development during this period?

Answer 21

Harbours in Cape Town, Port Elizabeth, Durban, and East London were enhanced, with smaller ports developed to support increased international trade.

Question 22

What role did communication developments play in economic growth?

Answer 22

The expansion of postal services, telegraph, and telephone lines connected main cities, improving communication and supporting economic activities.

Question 23

What were the impacts of colonialism and imperialism on South Africa’s development?

Answer 23

While infrastructure and human development improved, there were negative impacts, including disease spread, denial of rights, cultural disregard, exploitation, and underdevelopment.

Question 24

What was the main economic transition during the Mining and Industry stage (1910-1993)?

Answer 24

The transition was from a predominantly mining economy to an industrial economy, focusing on both the extraction of raw materials and the manufacturing of goods.

Question 25

How did agriculture change during this stage?

Answer 25

Agriculture saw increased mechanisation, government incentives post-World War II, and the emergence of agricultural companies. However, its contribution to GDP declined from 21.3% in 1912 to 3% in 2009.

Question 26

What was the role of mining in South Africa’s economy during this period?

Answer 26

Mining was a major contributor to GDP, starting at 27.5% in 1912 and declining to 9.8% by 2009. Gold mining dominated, with significant exports of minerals like chromium, platinum, and manganese.

Question 27

What were the key developments in the industrial sector during this stage?

Answer 27

Industrialisation increased manufacturing, raising its contribution to GDP from 5.8% in 1912 to 31.1% in 1981. Key developments included Eskom (1923), Iscor (1928), import substitution policies in the 1950s, and export promotion in the 1970s.

Question 28

How did apartheid laws affect the economy during this stage?

Answer 28

Apartheid laws enforced racial segregation and economic inequality, leading to sanctions and disinvestment. The eventual legalisation of trade unions for people of colour and removal of job reservations pressured South Africa to change discriminatory laws.

Question 29

How did transport improve during this period?

Answer 29

Improvements included better motor vehicle transportation (trucks, cars, taxis), road infrastructure, railways, and ports, which increased capacity for local and international trade.

Question 30

What were the key advancements in communication and services during this stage?

Answer 30

Technological advancements included telephones, television, internet, fax machines, and cell phones. The growth of the services sector, including financial services, tourism, real estate, and insurance, contributed to the tertiary sector making up 55.7% of GDP in 1940.

Question 31

What does the term “beneficiation” mean in the context of the Mining and Industry stage?

Answer 31

Beneficiation refers to adding value to minerals by processing raw materials into finished products, rather than exporting them unprocessed.

Question 32

Q: What is import substitution, and how was it used during this period

Answer 32

Import substitution was a government initiative to reduce reliance on imported goods by boosting local manufacturing, particularly during the 1950s.