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The article examines the shift in the post‐apartheid government’s economic policy from its reconstruction and development programme to its growth, employment and redistribution policy. It argues that this move towards a more neo‐liberal paradigm reflects the growing reflection of the state’s incapacity. The paper reviews the delivery on promises made by the post‐apartheid government after the April 1994 elections and analyses the reasons for its lack of capacity. Lastly, it appraises the potential for a South African developmental state.

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