Case Study Of South Africa

Mandela once said, “A man who takes away another man’s freedom is a prisoner of hatred, he is locked behind the bars of prejudice and narrow-mindedness.” (Page 32). This quote is an accurate description of all the people who supported the apartheid in South Africa starting when the National Party was elected in 1948. Knowing why this happened and what brought the apartheid to an end is vital to not making the same detrimental mistake again. Apartheid came to an end because of internal unrest, external pressure, and great leaders.

In the documentary Life and Debt, it is explained through the stories of local people, the economic and social crisis of Jamaica. With Jamaica receiving mandatory loans from the International Monetary Fund (IMF) in 1977 because of lack of alternatives, Jamaica was promised meaningful development. Unfortunately, this only made the situation worse because of the extreme policies and foreign economic agendas that came with the loans, forcing Jamaica into even further debt. Therefore, it is my opinion that it is because of the policies and greed of the IMF and The World Bank that came along with the loans, that Jamaica is currently 4.5 billion dollars in debt.

Thesis Statement: Apartheid may have been a horrible era in South African history, but only so because the whites were forced to take action against the outrageous and threatening deeds of the blacks in order to sustain their power.

No nation ought to be without a debt. A national debt is a national bond; and when it bears no interest, is in no case a grievance. Britain is oppressed with a debt of upwards of one hundred and forty millions sterling, for which she pays upwards of four millions interest. And as a compensation for her debt, she has a large navy; America is without a debt, and without a navy; yet for the twentieth part of the English national debt, could have a navy as large again. The navy of England is not worth, at this time, more than three millions and a half

One of the major causes of poverty throughout the world is National Debt. Also known as public debt, national debt is defined as “the total financial obligations of the central government of a nation usually in the form of interest-bearing government bonds” (National debt 2015). International debt is complex challenge in magnitude with poverty affecting the welfare of millions of people, in many countries all over the world. However at the same time international debt does not only affect those in the country but rather affects many international and private sources of financial institutions. National debt presents many moral challenge

However, there are impacts from negative forms of debt, such as credit card debt, that hinder a person’s citizenship and social equality. Due to

Apartheid affected the majority of South Africans of dignity, opportunity and the right to freedom. People were denied citizenship rights, dispossessed of their land and deprived from quality jobs.

The neoliberal policies, which South Africa has implemented after the end of the Apartheid era, has lead to increased inequality, both on the national as well as the global level. This has led many to argue that South Africa today faces a new kind of imperialism, one that is not so much based on political subordination but rather on a new type of economic subordination through a so-called "empire of capital". This idea, among others, falls under the broader theory of "economic imperialism".

The international and regional business cycles refer to fluctuations in the level of economic activity in the respective global and regional economy over time. SA’s high protection and corruption in the 1980s meant that the business cycle did not strongly affect it at this time. However, since SA’s trade intensity has increased (exports now account for 27% of its GDP) and its export base diversified, it has had a growing dependence on other countries. Globally, SA’s reliance on foreign funding for domestic investment meant that the GFC devastated the economy, with a -1.8% growth in GDP experienced in 2009 as opposed to 3.7% in 2008 highlighting the impact of the international business cycle on SA. Regionally, SA has taken a leading role in Africa, being a leader in the “New Partnership for Africa’s Development” program to enhance growth and development in the region, and exporting about 1/3 of its exports to

The term "apartheid" was one of the most politically charged words in the second half of the 20th century, and still remains notorious today. Apartheid translated from Afrikaans means "separateness" or "apartness". However when the National Party came to power in South Africa in 1948, it took on a much more sinister meaning and today is associated with racial and ethnic discrimination. The roots of apartheid stem deep into South African history. It started way back during European settlement, and was enforced and maintained right up until the end of the 20th Century. It will forever leave a mark on South Africa and indeed the world; a dark period in human history from which we have and will continue to learn.

In the 1970s, the country’s former prime minister signed a loan agreement which ultimately left Jamaica with over 4 billion dollars in debt with the World Bank and the International Monetary Fund. The loan was not only short term at full interest, but it also came with tremendous restrictions on what on what they could spend. With each renegotiation made to improve the “balance of payments,” devaluation, high interest rates, and wage guidelines were imposed. By increasing interest rates and

“South Africa cannot escape its African destiny. If we do not devote our energies to this continent, we too could fall victim to the forces that have brought ruin to its various parts” (Mandela, 1993: 89). The South African government, after the apartheid regime, made African issues one of the pillars of its foreign policy. The government committed itself to Africa because of various reasons, however, the most obvious reason is that the country wants to show loyalty to African States who played a hand in the liberation struggle. The areas of engagement South Africa has set out for itself in the Africa-mission are the following: “the encouragement of cultural exchange; the emancipation of African women from

Did the Apartheid Era have a negative or neutral influence on the South African economy including international trade and the foreign sector?

Numerous developing nations worldwide are in debt, causing both financial and humanitarian issues, resulting in being unable to pay for their citizens’ basic needs. These basic needs include accessibility to sanitary water, healthcare and education. Debt in developing countries such as Tanzania got rapidly out of control in the 1970s and 1980s. This was when developed countries such as United States, United Kingdom and Saudi Arabia lent out billions of dollars to less developed countries, like Tanzania and Nigeria, at floating interest rates to increase the lenders’ revenue. This eventually led to the loaner falling into a debt crisis.

South Africa’s loan increased from 40% to 70% of foreign debt. Its total foreign indebtedness increased steadily as loans were acquired from the IMF, whenever the foreign bankers turn down its request for loan. In addition, indebtedness was stabilized through gold swap. The debt problem became endemic in 1984, as about two-thirds of its outstanding loans had a maturity of one year or less. The public sector was responsible for the 16% of South Africa’s foreign debt; 44% of South Africa’s foreign liabilities were incurred by the banking sector; the remaining 40% were private liabilities. When Chase Manhattan withdrew substantial credit lines from South Africa in 1985, a major foreign debt crisis became glaring. The impact of credit freeze and refusal to roll credit over on South Africa led to a drop in the value of rand (South African currency) and temporary closure of the financial and foreign-exchange market. Liabilities not affected by the freeze include trade credits, credits guaranteed by the Paris Club, member governments, and loans from IMF and Central Banks. Also compounding South Africa’s debt problem was the large proportion of debt that was denominated in hard non-dollar currencies, but appreciated in dollar terms as the dollar weakened. Since then, South Africa’s external debt has been high and continued to follow a predictable upward trend, exerting substantial negative impact on productivity and growth. The Deutsche Bank (2008) showed the South African