The relationship between capitalism and the apartheid government's form of institutionalized racism was one forged solely on the basis of mutual benefits. The apartheid government's racist policies allowed the creation of a pool of unemployed cheap black labor by instituting various laws such as color bars and a highly vulnerable migrant labor brought forward by Bantustans. This relationship in turn allowed the apartheid government to have the capital backing to instigate various racist policies to further segregate the peoples of South Africa. This essay will argue that racism was indeed functional to capitalism in South Africa however this article will further argue that capitalisms main concern was profit and not racism. When racist policies went against profit, big capital went against the apartheid regime and in part brought the end of apartheid .This essay will make this argument by explaining various policies instigated by the South African government and how capital functionally benefited from it .This essay will then explain how the Apartheid regime imploded due to its functional relationship with capitalism that in turn became dysfunctional. .
Capitalisms alliance with the South African government is as old as the state itself. In 1922 big mining capital and the Smut lead regime aliened to smash the Rand Revolt a series of violent strikes by white labor unions to prevent the removal of color bars that protected white labor (Krickler,2005,40).This instance not only brought to light the symbiotic relationship between government (who wished to crush growing labor unionism) and big capital (who wanted lower wages by replacing expensive white workers with cheap black labor) but how capitalisms interests would override that of race in order to increase profitability .
In contrast with Capitals interest of profit making the Apartheid government's goal was that of the creation of a "white" South Africa, a racially segregated society that vouched for separate development on both macro and interpersonal levels (Christopher, 1994, 65).
