Natural resources foreign direct investment and conflict in South Africa: a case study of the Marikana tragedy

Abstract

This study describes and investigates the relationship between Foreign Direct Investment and conflict in the mining industry. It also explores the conduct of foreign-based companies as influenced by the Bretton Woods Institutions and their ability to bring solutions to the socio-economic problems of the North West Province. FDI companies set targets which tactfully enforce mine workers to work long hours without overtime payments. The findings indicate that racial connotations are still a factor in South Africa and in employment. Africans are restricted to low paid jobs. The study also indicates that the salaries and wages foreign multinational corporations differ significantly from one country to another and that Africans are usually restricted to lowest paid jobs. Foreign Direct Investment leads to population displacement and consequently to the cultural breakdown of some tribes. There is poor adherence to International Mining Action Standards and legislation governing the mining sector. It is therefore significant that companies that operate under FDI should implement the policies as required and laid down.