Module 20 Part 2: Flashcards
What major shift occurred in South Africa’s economic focus during the Agriculture and Mining stage?
The economic focus shifted from agriculture to mining due to European settlers’ interest, particularly after the discovery of diamonds and gold.
How did diamond mining develop between 1870 and 1910?
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.
What were the key developments in gold mining from 1886 to 1890?
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.
How did labor migration impact South Africa during the mining stage?
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.
What were the urbanization trends during the Agriculture and Mining stage?
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.
How did infrastructure develop to support mining activities?
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.
What changes occurred in agricultural production during this stage?
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.
“Colonialism.”
Colonialism is the governance of one country by another, primarily for trade benefits.
What does it mean to “Merge” in the context of business?
To merge means to combine two or more companies into one unit.
What is the “Gold Standard”?
The Gold Standard is a monetary system where a country’s currency value is directly tied to a specific amount of gold.
“Imperialism”
Imperialism refers to the domination of one country by another through political, military, or economic power.
Why was there a lack of capital in South Africa during the Agriculture and Mining stage?
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.
How did the lack of infrastructure hinder economic development in South Africa?
Initially, there were no roads, railways, or communication services, and significant capital was needed for infrastructure improvements to support economic activities.
What was the impact of the shortage of skilled labour on South Africa’s economy?
Skilled labourers were mostly in agriculture, leading to a lack of skills for the mining and manufacturing sectors, which slowed economic development.
How did the shortage of mine workers affect economic development?
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.
What was the impact of British imperialism on South Africa’s economic development?
Economic activities primarily benefited the British, with African workers excluded from political and economic decisions, leading to unmotivated labourers.
What was the consequence of the development of markets during the Agriculture and Mining stage?
There was an increased demand for agricultural products and manufactured goods, boosting local production of equipment, machinery, and tools.
How did commercial farming develop during this period?
Farming techniques improved to meet the growing population’s needs, leading to more efficient and expanded agricultural production.
What were the consequences of increased economic activity in South Africa during the Agriculture and Mining stage?
Profits and incomes from mining, agriculture, and manufacturing increased, leading to a higher GDP due to greater aggregate demand and supply.
How did the development of transport impact South Africa’s economy?
Railways connected interior towns to coastal harbours, and improved roads facilitated trade and the movement of goods.
What were the consequences of harbour development during this period?
Harbours in Cape Town, Port Elizabeth, Durban, and East London were enhanced, with smaller ports developed to support increased international trade.
What role did communication developments play in economic growth?
The expansion of postal services, telegraph, and telephone lines connected main cities, improving communication and supporting economic activities.
What were the impacts of colonialism and imperialism on South Africa’s development?
While infrastructure and human development improved, there were negative impacts, including disease spread, denial of rights, cultural disregard, exploitation, and underdevelopment.
What was the main economic transition during the Mining and Industry stage (1910-1993)?
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.
How did agriculture change during this stage?
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.
What was the role of mining in South Africa’s economy during this period?
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.
What were the key developments in the industrial sector during this stage?
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.
How did apartheid laws affect the economy during this stage?
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.
How did transport improve during this period?
Improvements included better motor vehicle transportation (trucks, cars, taxis), road infrastructure, railways, and ports, which increased capacity for local and international trade.
What were the key advancements in communication and services during this stage?
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.
What does the term “beneficiation” mean in the context of the Mining and Industry stage?
Beneficiation refers to adding value to minerals by processing raw materials into finished products, rather than exporting them unprocessed.
Q: What is import substitution, and how was it used during this period
Import substitution was a government initiative to reduce reliance on imported goods by boosting local manufacturing, particularly during the 1950s.
