Study Notes on South African War and Economic Changes

Economic Transformation

• Discovery of gold on Witwatersrand (1886) transformed South African economy.

• Led to influx of skilled and unskilled labor for mining.

• Initiated Mineral Revolution, fostering industrial revolution.

• Established features of apartheid economy: pass system, job reservation, migrant labor.

South African War

• Gold discovery incited war (South African War, 1899-1902) for control over mines.

• Resulted in British control of South Africa and legacy of Afrikaner nationalism and bitterness.

• 1910: Establishment of Union of South Africa, political power centralized among whites.

Mining and Its Growth

• Pre-1880s economy centered on agriculture; transformation initiated by diamonds (1867) and gold (1886).

• Witwatersrand became the largest global gold source, producing 25% of the world's gold by 1898.

• Mining required advanced technology due to depth and cost.

Capital and Investment

• Johannesburg Stock Exchange (1887) facilitated capital influx for mining companies.

• Over £200 million invested (1887-1934), primarily from foreign investors.

• British reliance on Rand gold for financial stability; Bank of England increased gold reserves post-1890 crisis.

Social Structure

• Emergence of classes: capitalists (Randlords), middle class (professionals), and working class (wage laborers).

• Working class comprised skilled and unskilled workers from diverse backgrounds.

• Skilled workers earned higher wages due to qualifications, while unskilled had limited job security.

Migrant Labor System

• Randlords adopted migrant labor to minimize costs, paying unskilled workers less.

• Workers signed contracts for fixed durations, returned home post-work, families remained in rural areas.

• Government introduced pass laws to restrict migrant workers' job movements, maintaining low wages.