ABSTRACT
The April 1994 South African elections marked a monumental political transformation. After decades of minority rule based on racial domination and legalized violence, the White minority regime gave way to a democratically elected government of national unity led by the long-banned African National Congress (ANC). 1 Notwithstanding the immensity of the political change, the next and essential phase in the evolution of the "new South Africa"—economic development and redistribution—promises to be difficult and fraught with dangers. Restructuring the economy to facilitate long-term development and redistributing wealth and resources to the formerly dispossessed majority are both necessary. They may, however, be mutually exclusive. Redistribution has short-term political benefits but long-term economic risks. Restructuring is hoped to secure long-term economic benefits, but runs very real political risks, particularly for the liberation-identified ANC.
