Paul, thanks for your comment and interest in the topic. S Africa's political economy is highly complex and insufficiently understood. The diagram in the blog is an observation of the insider-outsider phenomenon that appears to be at the heart of the issue. Big business, government and organized labor are locked in a perpetual struggle over who gets a bigger share of the extra normal profits that get generated because of lack of competition. The outcome is shaped by a number of conditioning variables such as labor laws, competition and tax policies and the strong sense of fairness and equity that motivates much of the rhetoric. How these conditioning variables interact to yield the outcomes (division of rents) is not clear at this stage. What is clear, however is that the process, noisy and often acrimonious as it is, operates within a tightly sealed political box which shuts out outsiders such as new businesses and the unemployed and marginalized who lack political voice but are contained through an extensive system of social grants.