Sanctioning Apartheid - KORA

south Afrwm Smrctim Ereding in S ouh Africa
obstacle to growth. In 1985, when the townships exploded into
violence, 9 billion Rand (R) flowed out of the country. Another
R6 billion fled in 1986.
Capital flight has has so serious that the ban on new
inveerit by the Americans and the European Community
(except for Britain) has yet to be tested, foreign and South
African companies prefetring to invest elsewhere. "Without
foreign capital," The Eammnist warned recently, "South Africa's
emnomy cannot manage the 5% growth a year it needs to create
jobs for its burgeoning population; most economists agree that
the 5% target can be met only if 10% of total investment-R.3
billion a year-mes from abroad5
Clearly Mr. hgh has his work cut out for him. Just as
clearly he and his murky colleagues are hard at work drumming
up export business-sanctions or no-wherever they can get it,
to amass the required investment income They are, by all
accounts, being aided by a "steady stream of sanctions busters,"
6ling into this county, "offering their dces in thinly disguised
advertisements in the financial papers.'*
It would appear that the greater number of these opportunities
come from the second and third worlds, especially
nations m the Far East There, fierce price cutting by the South
Africans is displacing Australian coal exporte~~. In southeast
Asia, Thailand, not previously a pipemaker, appears to be using
South Africsln steel to manufacture pipe?
Nearer home, South Africa is actively seeking f d d on
small islands off Afrio8s coasts which possess both airfields and
harbors. By 1987 the republic had already moved into Equatorial
Guinea, the Comoros, and Mauritius, with generous aid projects
involving madworking, medical assistance, and cattle breeding
projects. In return the South Africans sought air landing rights
which, combined with port a-, would give them insurance of
sorts against tougher sanctions, the ability to transship imports
and exports through the islands?
In particular, South Africa's fellow nations on the outs with
the United Nations establi&ment,mmely, Israel and Taiwan,
seem to be responding with a ready hand to the Republic's need.
At least they are the most heavily invested in the new factories
springing up in the homelands, fostered and heavily subsidized