Neoliberalism, Global Institutions, and the Constitutional Regulatory State

New Institutional Economics (NIE)InstitutionsBehaviourNeoliberalism is a common catch phrase in South Africa’s political economy, especially in debates between the ANC and its allies, the South African Communist Party (SACP) and the Congress of South Africa’s Trade Unions (COSATU). It is common for the SACP and COSATU to refer to any form of market restructuring especially interventions to include the private sector as Neo-liberalism. Any form of such restructuring across the industries is seen as capitulation by the ANC and government to the whims of neoliberalism which is associated with global institutions such as the World Trade Organisation, World Bank and the World Economic Forum. This chapter poses a persisting question on whether the South African regulatory state in inherently neoliberal or its an outcome of an interface of multiple ideological strands including the developmental state which the ANC purports to pursue. In so doing the chapter also focus on the experience of the UK which has been associated with the rise of Neo-liberalism, and pose a question on whether Neo-liberalism really even happened in that environment. Overall, this pivot is necessary as the relentless use of this label (sensitive to many in the ANC alliance as very few, if any leaders, accept to be associated with the tag) has constrained efforts to reform the industries to enhance efficiency and effectiveness.