Economics in South Africa Apartheid

Essay by nz2saHigh School, 12th grade May 2009

download word file, 7 pages 0.0

From 1962 sanctions against South Africa were used to protest against the Apartheid government of the time. The United Nations General Assembly began by encouraging its members to break any diplomatic or economic ties with South Africa until Apartheid was abolished. At this time it was widely believed that introducing bans and high taxes on South Africa would force the government to change its political system of Apartheid. What I wish to uncover, is whether or not these sanctions were successful or not in causing South Africa to put an end to the Apartheid government. Evidence suggests that economic ruin was in fact caused mainly by the lack of private investors. But perhaps the sanctions acted indirectly, making South Africa's economy unstable and untrustworthy, therefore discouraging private investors.

In the 1980's South Africa experienced an economic crisis. Worldwide there was a boycott against South Africa in an attempt to force the end of Apartheid.

The Rand fell from $1.14 to $0.40 between 1981 and 1989 and a state of emergency was declared. South Africa had debt worldwide and sanctions were placed against many of South Africa's imports. It eventually called a 'standstill' on payments in international debt, which were in the area of twenty-four billion US dollars.

Undeniably sanctions against South Africa, lead by governments had an impact. But the question is whether or not they can be considered successful. Perhaps one of the most effective and major sanctions against South Africa would be the oil embargo in 1973. The price of oil at the time was already at record heights, making the effect of further increases in price due to lack of supply quite substantial upon South Africa, especially in the late 70's and early 80's. From 1979 to 1982 the total cost of the oil embargo to South...