Graduate Student Associations Council; Graduate And Professional Students Association
Philadelphia, Pennsylvania, United States
December 2, 1985
21 pages
Contents: INTRODUCTION • HISTORICAL BACKGROUND • DIVESTMENT AS A POLITICAL STRATEGY • 1. If it is argued that the divestment strategy is flawed because shareholders have more influence when they hold share than if they sell those shares. For every buyer, there is a seller; hence, it is said, the effects of divestment are nullified. • 2. Those who doubt the importance of economic pressure on South Africa often cite the fact that U.S. companies represent only 20% of the foreign capital invested in South Africa. Even though these investments are concentrated in strategically important areas, such as computer, automotive, and petroleum industries, divestment...
Contents: INTRODUCTION • HISTORICAL BACKGROUND • DIVESTMENT AS A POLITICAL STRATEGY • 1. If it is argued that the divestment strategy is flawed because shareholders have more influence when they hold share than if they sell those shares. For every buyer, there is a seller; hence, it is said, the effects of divestment are nullified. • 2. Those who doubt the importance of economic pressure on South Africa often cite the fact that U.S. companies represent only 20% of the foreign capital invested in South Africa. Even though these investments are concentrated in strategically important areas, such as computer, automotive, and petroleum industries, divestment opponents claim that other countries would move into the vacuum left by American companies. • 3. Opponents of divestment often imply that divestment amounts to a way for Americans to “wash their hands” of the messy business in South Africa. Companies wishing to remain are cast in a superior light, because they apparently wish to negotiate the way to peaceful change. Divestment is thought to represent surrender to violent change and thus failure. • 4. Opponents of divestment argue that economic pressure will hurst blacks most and that it would be immoral to inflict further suffering on this oppressed group. • PENN’S INVOLVEMENT • CONCLUSION • APPENDIX-THE FINANCIAL IMPLICATIONS OF DIVESTMENT • Sources • The report argues for Pennsylvania State University to divest from companies doing business in South Africa.
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