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This article re-examines existing interpretations of the ANC's economic and social policy choices during the negotiations that led to South Africa's democracy. The divergence but also convergence crucially in economic policy thinking of key policy actors within the ANC and the National Party (NP) led apartheid regime is contrasted. The National Party's economic policy agenda is discussed with attention to its key 'technocratic' policy actors and how they influentially negotiated neo-liberal policy positions with the ANC. The economic and social policies of the ANC must be seen in contrast as part of a series of attempts historically at advocating social democratic oriented policies. The ANC leadership however marginalised and abandoned these ideas and policies in a social democratic vein in the consensus seeking transition era. The paper tries to explain these shifts and to come to grips with the complexity of the actors, history and politics of ANC policy thinking in the transition era. [ABSTRACT FROM AUTHOR]

The pre-democracy negotiations between the African National Congress (ANC) and the National Party (NP) established nine provincial forms of government to replace the four provinces of the apartheid era. The nine provinces contrasted with the historical goal of the ANC to create a 'democratic, non-racial and unitary South Africa'. The NP wanted nine new provinces to prevent centralized state power under an ANC government and saw possibilities for winning electoral power in the Western Cape. The ANC conceded following political pressure from the Inkatha Freedom Party, which threatened civil war, and a policy shift after examining the German federal governance system. The article analyzes the history, politics, process and outcomes of the establishment of the nine provinces for social policy delivery in South Africa. It explores the contention that the nine provinces re-fragmented service delivery (although not on a statutory racial basis) and created a system of fiscal decentralization with serious implications for social policy: weakening bureaucratic capacity, institutional capability and political accountability. The provincial governance mechanisms and fiscal institutions created a particular 'path dependency' which, 18 years after democratic, rule still impacts negatively on service delivery and more equitable policy outcomes. This is in part due to the undermining of provincial governance mechanisms and fiscal institutions by a significant minority of corrupt and incompetent provincial civil servants. The corruption of these provincial governance mechanisms and fiscal institutions erodes the egalitarian values aimed at creating a non-racial, non-sexist, democratic and unitary South Africa which historically underpinned the policy agenda of the ANC. It also has weakened social citizenship on a geographical and ultimately racial basis given the continuing co-incidence of race and place in a democratic South Africa. [ABSTRACT FROM AUTHOR]