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“Foreign criticism of apartheid, in the wake of the Soweto revolt and Biko’s death, was also mounting. The spectacle of armed police shooting schoolchildren in the streets brought worldwide condemnation and calls for economic boycott and sanctions, endangering South Africa’s export markets. Foreign investors no longer looked on South Africa as such a stable and profitable haven.

“Several prominent American and British banks terminated their South African business.”

“the demands by economists and businessmen (including Afrikaners) began to be very insistent that the barriers be scraped. Big companies even began to raise quite large sums of money privately to build schools for Africans in the urban areas. This was not charity but self interest.”

“The economic boom of the 1960’s, together with the growing use of advanced production techniques, had produced such a serious shortage of skilled labor that it was hampering further economic growth. White immigration was not sufficient enough to fill the gap.”

“business growth created a growing demand for white employees that drove white wages and salaries to very high levels. Because of the high incomes paid to whites in private business, government employment became less attractive.”

Afrikaner farmers had been an important source of political support for the National Party and the connection with the land had always been a fixation with Afrikaner nationalists. As a result, policies had favoured farmers with large marketing boards and other forms of protectionism. By the 70s, these farm protection measures were contributing noticeably to rising prices and inflation.

although the National Party government claimed to be committed to capitalism, apartheid involved massive interference in the market; there was little ‘free market’ under apartheid. The colour bar was a massive undermining of free markets. It is true that the government tried to ensure that employers had large quantities of cheap labour as compensation, but contrary to marxist analyses, it was not business who wanted it. Moreover, because business was required to maintain a ratio of white employees to black employees, business growth created a growing demand for white employees that drove white wages and salaries to very high levels.

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“high inflation together with stagnation or ‘stagflation’. In the wake of the sharp rise in oil prices, most industrialized countries experienced this in the late 70s and early 80s. However, South Africa was already in this mode before the oil crisis; the latter just worsened it. South Africa has not really been able to get out of the mode. When the Rand was created in the late 1960s (half of its predecessor, the pound sterling), it was worth about $1.80. As of the end of 2006 it is worth about Can. $0.16-0.17 and worth even less in US funds. (However, the Rand has stabilized in the last couple of years and recently gained a bit against the US dollar.) The failure symbolized by the currency decline was already beginning to affect white incomes and wealth even in the 1970s.”

Foreign capital. which was vital factor in helping South Africa to achieve high rates of economic growth, began to flow out.

Moreover, white unions controlled access to skilled trades by limiting apprentices to whites. The results were often enormous shortages of skilled workers. In 1971, one study concluded that South Africa was 6,000 auto mechanics short of its requirements.

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Non-Stop Picket Against Apartheid outside the South African Embassy in Trafalgar Square, 1986

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The shortage of White workers:
“The economic boom of the 1960’s, together with the growing use of advanced production techniques, had produced such a serious shortage of skilled labor that it was hampering further economic growth....”

“business was required to maintain a ratio of white employees to black employees, business growth created a growing demand for white employees that drove white wages and salaries to very high levels. Because of the high incomes paid to whites in private business, government employment became less attractive. That is why beginning in the 1960s, the government eventually came to break its own laws by employing non-whites in jobs that were supposed to be filled by whites. For many years, the government repeated the fiction that these non-white government employees were ‘temporary’ in spite of the fact that their numbers continued to grow steadily.”

The loss of foreign investment:
“Foreign criticism of apartheid, in the wake of the Soweto revolt and Biko’s death, was also mounting. The spectacle of armed police shooting schoolchildren in the streets brought worldwide condemnation and calls for economic boycott and sanctions, endangering South Africa’s export markets. Foreign investors no longer looked on South Africa as such a stable and profitable haven.

The tanking of South African Currency:

“high inflation together with stagnation or ‘stagflation’. In the wake of the sharp rise in oil prices, most industrialized countries experienced this in the late 70s and early 80s. However, South Africa was already in this mode before the oil crisis; the latter just worsened it. South Africa has not really been able to get out of the mode. When the Rand was created in the late 1960s (half of its predecessor, the pound sterling), it was worth about $1.80. As of the end of 2006 it is worth about Can. $0.16-0.17 and worth even less in US funds. (However, the Rand has stabilized in the last couple of years and recently gained a bit against the US dollar.) The failure symbolized by the currency decline was already beginning to affect white incomes and wealth even in the 1970s.”

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“Several prominent American and British banks terminated their South African business.”

"A rash of strikes in 1973 pointed to the urgent need for improved labor conditions."

“the demands by economists and businessmen (including Afrikaners) began to be very insistent that the barriers be scraped. Big companies even began to raise quite large sums of money privately to build schools for Africans in the urban areas. This was not charity but self interest.”

“Shortage of skilled labor that was hampering economic growth. White immigration was not sufficient enough to fill the gap.”

“Afrikaner farmers had been an important source of political support for the National Party and the connection with the land had always been a fixation with Afrikaner nationalists. As a result, policies had favoured farmers with large marketing boards and other forms of protectionism. By the 70s, these farm protection measures were contributing noticeably to rising prices and inflation.”

“business growth created a growing demand for white employees that drove white wages and salaries to very high levels. Because of the high incomes paid to whites in private business, government employment became less attractive.”

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The non-white educational systems were grossly underfunded; Bantu Education was especially notable for its inadequacies. Moreover, white unions controlled access to skilled trades by limiting apprentices to whites. The results were often enormous shortages of skilled workers. In 1971, one study concluded that South Africa was 6,000 auto mechanics short of its requirements. Researchers’ projections of future needs indicated even more horrendous shortfalls. Thus, the demands by economists and businessmen (including Afrikaners) began to be very insistent that the barriers be scraped. Big companies even began to raise quite large sums of money privately to build schools for Africans in the urban areas. This was not charity but self interest.

Afrikaner farmers had been an important source of political support for the National Party and the connection with the land had always been a fixation with Afrikaner nationalists. As a result, policies had favoured farmers with large marketing boards and other forms of protectionism. By the 70s, these farm protection measures were contributing noticeably to rising prices and inflation.

White immigration was not sufficient enough to fill the gaps. By the 1970 the skills shortage amounted to nearly 100,000 jobs.

Foreign capital. which was vital factor in helping South Africa to achieve high rates of economic growth, began to flow out.

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although the National Party government claimed to be committed to capitalism, apartheid involved massive interference in the market; there was little ‘free market’ under apartheid. The colour bar was a massive undermining of free markets. It is true that the government tried to ensure that employers had large quantities of cheap labour as compensation, but contrary to marxist analyses, it was not business who wanted it. Moreover, because business was required to maintain a ratio of white employees to black employees, business growth created a growing demand for white employees that drove white wages and salaries to very high levels.

Economic growth was greatly expanding the need for educated and skilled workers. By that point, the white population had pretty much reached its capacity for providing such people; apartheid was inhibiting the non-white population from filling the gap. The non-white educational systems were grossly underfunded; Bantu Education was especially notable for its inadequacies.

What employers now feared was the emergence of a new generation of radical activists who, in their hatred against Apartheid, might turn against the free enterprise system as well. (423)

For the first time, the costs of sustaining Apartheid began to affect white interests. (424)

In the wake of the Soweto revolt… brought worldwide condemnation and sanctions, endangering South Africa’s export markets. Foreign investors no longer looked at South Africa as such as safe and profitable haven. (423)