The South African Economy Under Siege
by Interfaith Center on Corporate Responsibility
New York, New York, United States
Fact Sheet on the impact of sanctions and the continuing need for them. The document quotes Rev. Frank Chikane, General Secretary of the South African Council of Churches (SACC), calling for immediate and comprehensive sanctions. The document says U.S. and international sanctions have begun to exert increasing pressures on South Africa, and the apartheid economy is experiencing serious constraints. Economic isolation has also undermined South Africa's ability to finance its occupation of Namibia and attacks against the frontline states. Since 1985, the year U.S. banks refused to renew their outstanding short-term loans to South Africa, the South African economy has experienced a net capital drain of $10 billion. • 1988: The Year Sanctions Began to Bite • 1. Contributing Factors • A. Sanctions • B. Disinvestment • C. Cut-Off of Short Term Loans • D. Declining Productivity of South African Manufacturing Industry • E. International Aggression • 2. Pretoria’s Response • A. Selling Gold Stocks • B. Attempting to Sustain a Trade Surplus • 3. Resulting Problems • A. Economic Stagnation • B. Declining Value of the Rand • C. Inflation • Implications for Action
Used by permission of the Interfaith Center on Corporate Responsibility.
Collection: George M. Houser (Africa collection), Michigan State University Libraries Special Collections