Sanctioning Apartheid - KORA

that &e&dy block off US tramnational finns and h eid
Mtutimm' con!ddions to induMalization under apartheid
Manufaddng Gmwth and the Dichotomization of
South Hca's Iiconomy
Fueled by tramnational corporate capital and tdmologyI the
rapid grow& of South Africa's man- sectar in the 1960s
and 1970s amkabed the dicholnmization of South Africa's
politid economy along race and class lines. On the one hand,
it accekafd the mmxntration and centralization of caw in the
hands of her £inns, dominated by locally based mining 6nance
houses, partidmIy the Anglo American Gr~up.~ On the otha
handI it contributed to the further unemployment and marsjnalization
of the black labor force that inten&ed presams for
lihmticm By the late 19709, dired tramnational corporate
inv- had multiplied to almost 40 pemmt of aR manufacturing
investmaL US oil majors helped the state expand South
Africa's ail rehbg capacity to the laqest on the continent.
Although their initiat capita idow spurred the post-Smpdk
boom, howeverI their South Arhimn business never eonsfituteri
much more than one percent of their worldwide sales6 l?urthe
more, hmdngly, instead of bringing m new capilal, the
~tionals reinvested a share of their locally generated profits
and local (5~pital
More imp- than the new capital they invested, the
~~ handend to Swth Africa increasingly sophisticated,
capital-intensive tedmolo@es. As Table 1 showsI they sold
ma$ of tbh $7 billion worth bf South African output inside
South A£rica A hge part of these sale constitubed advanced
tdumIo@es that aqpented the productivity of the minoritycontrolled
mdern sector without necessitating the uppding of
black Bldk
The US oil majors made about a third of US Swth Af&m
affihs* total sales, helping South Africa wade the international
03 boycott by refinin% and selling imported crude dL7 Other
mmuEactn&g dfiliate made two fifths of the saki half of them
selling ChemiaJs, machineryI and mprt eguipment. Despite