Economic Sanctions and the Rainbow Nation

 

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Ever since its decolonization in 1910, South African politics have been dominated by Apartheid.  This is the system by which the white minority (under 10%) has dominated South Africa at the expense of the majority native african populations.  Everyone is familiar with the struggles of Nelson Mandela and Bishop Desmond Tutu and their eventual success in desegregating the population.  However, the white Afrikaner government was by no means ready to concede defeat to the ANC, indeed they had already prepared for a race war.  If it wasn’t for the Western World’s disinvestment of the South African economy, it is very possible that the Rainbow Nation that we know the day would have a different fate.  

Implanted in the 70’s and 80’s, Disinvestment was the withdrawal of businesses and investment from the South African economy.  The idea was originally conceived after notable student protests at Michigan State University and Stanford University where the schools agreed to boycott all imports coming from South African companies.  These actions in turn motivated the passage of the Comprehensive Anti-Apartheid Act.  Following its passage South African exports, over the course of two years, decreased by 35% and currency inflation rose dramatically at a 15% rate per year.  American businesses owners began seeing South African investment as a detriment and rapidly abandoned all trade deals.  By the end of the 80’s only some 130 western businesses still traded with South Africa.  Further legislative acts threatened to end all trade between the United States and South Africa but were not passed by the Senate.  However, the mere threat of the end of trade relationships with the west served as a wake up call for President Botha that Apartheid would no longer be tolerated by the Western World.  The harsh economic sanctions would force Botha to resign from office in 1989 and be replaced by the more moderate F.W. De Klerk.  

In just a few short years, De Klerk resigned as the last Apartheid President of South Africa.  Economic Sanctions had crippled the economy and domestic politics had left the Afrikaners without any foreign support.  Facing a potential revolution on the home front and without any aid or assistance from formerly staunch allies, De Klerk knew that white rule in South Africa had come to an end.  These economic sanctions proved to be the last nail in the coffin for a dying ideology based on racism and hate.