By the standard of popular approval, the South African state has no legitimacy, since only whites are enfranchised and blacks are being denationalized. This institutionalized politicization of ethnicity increasingly erodes the efficiency of private and state institutions alike. Enforced ethnic identities without representative leadership undermine proposed liberal arrangements of negotiated power-sharing as well as the government policy of cooptation. In the absence of political democracy, politicized labor relations substitute for restricted mobilization elsewhere. There are three basic responses to this legitimation (...) crisis of the South African state: 1) the radical left response of revolutionary reversal of power 2) the reformist business response of co-optation and 3) the technocratic government response of further political separation with increased economic collaboration. (shrink)