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Economic Restructuring Under the ANC
When the ANC came to power in 1994 it instituted policies of affirmative action that saw a rapid increase in the number of high-earning blacks, particularly in Johannesburg. This created ostentatious wealth for a few but did not help the mass of ill-educated poor.

Affirmative Action also created feelings among minorities that they were being discriminated against and that 'standards' would fall as inexperienced and often less qualified people were preferred on the basis of colour. Such perceptions hardened race attitudes and encouraged emigration, which saw large numbers of white professionals leave the country.

Under apartheid the civil service was white dominated, and budgets were focused upon providing services in 'white' areas.

The ANC shifted spending to create service provision in poor areas. Thus there had to be cutbacks and 'freezes', especially in established hospitals and schools. This lowered morale and caused many white employees to leave the government service. In the late 1990s there was vocal concern about the 'decline in services', leading to accusations and counter accusations of 'racism'.

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