National Trade Data Bank ITEM ID : ST BNOTES SOUTHAFR DATE : Oct 28, 1994 AGENCY : U.S. DEPARTMENT OF STATE PROGRAM : BACKGROUND NOTES TITLE : Background Notes - SOUTH AFRICA Source key : ST Program key : ST BNOTES Update sched. : Occasionally Data type : TEXT End year : 1992 Date of record : 19941018 Keywords 3 : Keywords 3 : | SOUTH AFRICA US DEPARTMENT OF STATE BACKGROUND NOTES: SOUTH AFRICA Official Name: Republic of South Africa PROFILE Geography Area: 1,233,404 sq. km.(472,359 sq. mi.), including the enclave of Walvis Bay in Namibia; (almost twice the size of Texas). Capitals (population from the 1985 South African Government census): Administrative-Pretoria (850,000). Cape Town (1.9 million), Judicial-Bloemfontein (232,000). Other cities-Johannesburg (1.7 million), Soweto (est. 2 million), Durban (1 million). Terrain: Plateau, savanna, desert, mountains, coastal plains. Climate: Moderate. People Nationality: Noun and adjective-South African(s). Population: 37.5 million (1988 estimate). Ethnic groups: African (black) 28 million; white 5.4 million (Afrikaners 2.9 million; English-speaking and others 2.5 million); "colored" (mixed-race) 3.2 million; Asian (Indian) 1 million. Annual growth rate: overall 2.3%; African 2.5%; white 0.85%; "colored" 2.4%; Asian 1.89%. Languages: English and Afrikaans (official) , Zulu, Xhosa, North and South seSotho, seTswana, others. Religions: predominantly Christian; traditional African, Hindu, Muslim, Jewish. Education: Years compulsory-white and "colored" from ages 7-16; Asian from ages 7-15; being introduced incrementally for blacks. Health: Infant mortality rate per 1,000 live births (range of official and unofficial estimates, 1985)-overall 66.4; black 40-124 (wide variation reflects urban/ rural differences); white 9-12; "colored" 29.51; Asian 12.18. Life expectancy (U.S. Census Bureau, 1987)-overall 60.7 yrs.; black 58.6 yrs; white 71.9 yrs.; "colored" 60.8 yrs.; Asian 67.0 yrs. Work force (11 million): agriculture 25%; manufacturing and commerce 32%; services 34.5%; mining 8.5%. Government Type: Executive-president; under the 1984 constitution, tricameral Parliament with one chamber each for whites, "coloreds," and Asians. Independence: The Union of South Africa was created on May 31, 1910; became sovereign state within British Empire in 1934; became a republic on May 31, 1961; left the British Commonwealth in October 1961. Branches: Executive-state president (chief of state) elected to a 5-year term subject to removal by majority vote of each of the three Houses. Legislative-tricameral Parliament consisting of 308 members in three chambers elected by, respectively, the white, "colored," and Asian electorates on separate voters' rolls. House of Assembly (white) 166 members elected directly for maximum 5-year term, four members nominated by the president, eight indirectly elected by the chamber; House of Representatives ("colored") 80 directly elected members, two members nominated by the president, and three indirectly elected by the chamber; House of Delegates (Asian) 40 members directly elected, two nominated by the president and three indirectly elected by the chamber. President's Council: 60 members, 25 appointed by the president, 20 elected by the House of Assembly, 10 elected by the House of Representatives and five elected by the House of Delegates. Members serve during term of parliament. Judicial-Supreme Court consisting of Appellate Division in Bloemfontein and four provincial divisions. Administrative subdivisions: Provincial governments of the Transvaal, Orange Free State, Cape of Good Hope, and Natal; 10 separate "homelands," which the government has designated for Africans. Four are regarded as independent by South Africa but not by any other government. Political parties: White-National Party, Conservative Party, Democratic Party (merger of Progressive Federal Party, Independent Party, and National Democratic Movement). "Colored"-Labour Party, Freedom Party, People's Progressive Party, Reformed Freedom Party, New Convention People's Party. Asian-National People's Party, Solidarity, Progressive Independent Party, National Federal Party, National Democratic Party. Suffrage: Adult whites, "coloreds," and Asians 18 and older. Central government budget (FY 1989-90): Rand 46.32 billion (1 rand=about US$.38) Defense (FY 1989-90): Rand 8.7 billion. Fiscal year: April 1- March 31. Flag: Three horizontal bands-orange, white, and blue from top to bottom with the Union Jack and the flags of the two former Boer Republics (the Orange Free State and the Transvaal Republic) reproduced in miniature and centered on a white band. Economy GDP (1988): $83.5 billion. GDP growth rate (1988): 3.2% . GDP per capita (1988): $2,256. Government spending (1986): 18.8% of GDP. Inflation (1988): About 12.5%. Unemployment (1988): Estimated 25%-30% for blacks; less than 2% for whites. Natural resources: Almost all essential commodities, except petroleum. Agriculture (1988): About 6% of GNP. Products-corn, wool, dairy products, wheat, sugar cane, tobacco, citrus fruits, wine. Cultivated land-12%. Mining (1988): About 13% of GDP. Manufacturing (1988): About 24% of GNP. Industry: Types-minerals, automobiles, fabricated material, machinery, textiles, chemicals, fertilizer. Trade: Exports (1988)-f.o.b. $20.9 billion: gold, platinum group metals, ferrochromium, uranium compounds, diamonds, coal, agricultural products. Major markets-Japan, West Germany., UK., US, Switzerland. Imports (1988)-f.o.b. $14.3 billion: machinery, mining equipment, transportation equipment, computers, aircraft parts, rice, and office machinery parts. Major suppliers-Japan, West Germany, United Kingdom. Official exchange rate (May 1989): Financial rand exchange rate (1 rand/$US: 0.23; commercial rand exchange rate (1 rand/$US): 0.38. Membership in International Organizations UN and many of its specialized and related agencies, including the International Monetary Fund (IMF) and the General Agreement on Tariffs and Trade (GATT); INTELSAT; International Atomic Energy Agency (IAEA). (South Africa's voting rights in the UN General Assembly have been suspended since 1974.) GEOGRAPHY The Republic of South Africa lies at the southern tip of the African continent. The independent country of Lesotho is an enclave situated within the east-central part of South Africa. South Africa has a narrow coastal zone and an extensive interior plateau with altitudes ranging from 1,000 to 2,000 meters (3,000-6,000 ft.) above sea level. South Africa lacks important arterial rivers or lakes, so extensive water conservation and control are necessary. The coastline is about 4,300 kilometers (2,700 mi.) long. South Africa's climate is generally moderate, with sunny days and cool nights. The seasons are reversed from those in the northern hemisphere. The average mean temperature is remarkably uniform, with the most southerly point, near Cape Town, having a mean yearly temperature of 16.50C (61.8 0F), while Johannesburg, about 1,600 kilometers (1,000 mi.) to the northeast and 1,700 meters (5,700 ft.) higher, has an annual mean temperature of 16 0C (60.80F). Mean annual precipitation ranges from less than 12.7 centimeters (5 in.) along the west coast to 102 centimeters (40 in.) or more in the east. PEOPLE South African law divides the population into four major racial categories: Africans (blacks), whites, "coloreds," and Asians. The Africans (72% of the population) are mainly descendants of the Sotho and Nguni peoples who migrated southward centuries ago. The largest African ethnic groups, according to 1980 estimates, are Zulu (6 million) and Xhosa (5.8 million). Africans are officially subdivided into 10 groups corresponding to the 10 ethnically based, government-created "homelands" (sometimes called "national states" by South Africa). Whites are primarily descendants of Dutch, French, English, and German settlers, with smaller admixtures of other European peoples, and constitute about 14% of the population. "Coloreds" are mostly descendants of indigenous peoples and the earliest European and Malay settlers in the area. "Coloreds" comprise 9% of the population and live primarily in Cape Province. Asians are mainly descendants of the Indian workers brought to South Africa in the mid-19th century to work as indentured laborers on sugar estates in Natal. They constitute about 3% of the population. Of South Africa's 15 residential universities, 10 are designated for whites (6 Afrikaans-speaking and 4 English-speaking), 4 for blacks, and 1 each for "coloreds" and Asians. Africans also have a medical university. Increasing numbers of blacks are now admitted to white universities. The government has the legal power to impose quotas, and as it underwrites 75%-80% of university costs, has the leverage to withhold money to force universities to follow government standards and regulations. The four English-speaking universities for whites and the one university for "coloreds" are seeking to integrate. The student body at these "open" or integrated universities is 17% nonwhite overall (i.e., African, "colored", Asian), with an estimated 25% at the University of Cape Town in 1988. The University of South Africa conducts correspondence courses for some 86,000 students of all races. The literacy rate (15 years and older) for the various groups has been estimated at: 98% for whites, 50% for Africans, 75% for "coloreds," and 85% for Asians. HISTORY People have lived in southern Africa for thousands of years. Of the present inhabitants, the earliest are Bushmen and Hottentots-members of the Khoisan language group, of whom only a few survive. Members of the Bantu language group, to which most of the present-day blacks of South Africa belong, migrated slowly southward from central Africa and began to enter the Transvaal region sometime before 100 AD. The Nguni, ancestors of the Zulus and Xhosas, had occupied most of the east coast by 1500. The Portuguese were the first Europeans to reach the Cape of Good Hope, in 1488. Permanent white settlement began when the Dutch East India Company established a provisioning station there in 1652. In subsequent decades, French Huguenot refugees, Dutch, and Germans settled in the Cape area to form the Afrikaner segment of the modern population. By the end of the 18th century, European settlement had extended through the southern part of the Cape westward to the Great Fish River, where the whites first came into conflict with the Xhosa branch of the Nguni. Britain seized the Cape of Good Hope at the end of the 18th century. Subsequent British settlement and rule marked the beginning of a long conflict between Afrikaner and English. Partly to escape British political rule and cultural hegemony, many Afrikaner farmers (Boers) undertook a northern migration (the "Great Trek") beginning in 1836. This movement brought them into contact with several African groups, the most formidable of which were the Zulus. Under their powerful leader, Shaka (1787-1828), the Zulus conquered most of the territory between the Drakensberg Mountains and the sea (now Natal). At the Battle of Blood River in 1838, the whites defeated the Zulus and weakened their power. The Zulus remained a potent force in northern Natal until 1879, when, after an initial Zulu victory, British troops destroyed Zulu military power and occupied Zululand. Independent Boer republics of the Transvaal (the South African Republic) and the Orange Free State were created in 1852 and 1854. Relations between these republics and the British Government continued to be strained. The famous diamond strike at Kimberley in 1870 and, 16 years later, the discovery of extensive gold deposits in the Witwatersrand region of the Transvaal prompted an influx of European (mainly British) investment and immigrants. The Boer reaction to this flood and to British political intrigues against the two republics led to the two Boer wars in 1880-1881 and 1899-1902. In the second struggle, British forces conquered the Boer republics and incorporated them into the British Empire. The two former republics and the two British colonies of the Cape and Natal were joined on May 31, 1910, to form the Union of South Africa, a dominion of the British Empire. Whites controlled most domestic matters. In 1934, under the Statute of Westminster, the Union achieved status as a sovereign state within the British Empire. Conflict between Afrikaners and English-speaking groups continued to influence political developments. A strong resurgence of Afrikaner nationalism in the 1940s and 1950s led to a decision, through a 1960 referendum among whites, to give up dominion status and establish a republic. The republic was established on May 31, 1961. In October 1961, South Africa withdrew its application for continued membership in the Commonwealth. In 1983, whites approved by 66% of the vote a new constitution containing limited power sharing with "coloreds" and Asians. Elections for the "colored" and the Asian Houses of Parliament took place in August 1984. The new constitution was promulgated on September 3, 1984. GOVERNMENT AND POLITICAL CONDITIONS When the Union of South Africa was established, the former Boer republics and the principal British colony wanted their capitals-Pretoria, Bloemfontein, and Cape Town-to be selected as the capital of the new Union. They compromised by making Pretoria the administrative capital, Cape Town the legislative capital, and Bloemfontein the judicial capital. The Union's successor, the Republic of South Africa, has opted for a unique combination of a strong presidential system and a tricameral parliament. Ultimate power in South Africa today is increasingly "extraparliamentary" in nature and rests to a substantial degree with the State President, his advisory council, members of his cabinet, and the security/defense establishment. South African laws are based on the doctrine of apartheid, which prescribes basic rights and obligations according to racial or ethnic origin. The country's black majority continues to suffer from pervasive, legally sanctioned discrimination based on race in political, economic, and social aspects of life. The "colored" and Asian minorities also suffer from discrimination, although to a somewhat lesser degree than blacks. Political rights of the black majority are confined to participation in tightly controlled urban councils in the country's black residential areas (townships) and in the 10 so-called homelands. Blacks have been excluded from even the limited political changes initiated under South Africa's 1984 constitution. They have no right to vote in national elections and have no representation in Parliament. In the September 6, 1989 election to the House of Assembly, the governing National Party lost strength to both the right and left but still captured 93 seats. The right-wing Conservative Party won 39 seats, up from 22, and remained the official opposition. The pro-reform Democratic Party increased its strength from 19 to 33 seats. Members for each House are elected from separate, racially based voter rolls. Each House has primary responsibility for "own-affairs" matters; i.e., legislation affecting its own racial constituency. The State President is empowered to decide arbitrarily which "general affairs" matters are to be treated by all three chambers. If efforts at consensus on general affairs issues fail, the issues are referred to the President's Council, a body composed of whites, "coloreds," and Asians, for an advisory opinion. The ruling National Party controls the President's Council. In June 1986, the "colored" and Asian Houses of Parliament attempted to block security legislation passed by the white House of Assembly. The President's Council overrode this effort, and the disputed security legislation became law. The lines between "own affairs" and "general affairs" are sometimes imprecise. Matters usually considered general affairs include foreign policy, defense, and national security. Education is normally an "own affair" but is subject to general laws prescribing norms and standards for salaries, curriculum, and exams. The terms of the new constitution and the existence of a white majority in Parliament ensure control by the white House of Assembly over general affairs. The National Party, which has controlled South African political affairs since its first parliamentary victory in 1948, dominates legislative affairs by sheer force of numbers. Within the National Party, viewpoints toward reform of the apartheid system range from moderate to reactionary. Internal differences are, in theory, resolved in party caucuses. In practice, the State President, who also is the National Party leader, is the ultimate arbiter. Blacks have no representation in Parliament. Their political participation remains limited to a franchise in one of the 10 homelands to which all blacks, in principle, are assigned through ethnic or linguistic identification, or, in the case of urban blacks, to selecting black local government officials. Assignment takes place regardless of the wishes of those involved and without regard to whether they have been born, ever lived in, or even visited their putative homeland. When a homeland "requests" and is granted "independence" by the South African Government, blacks assigned to that homeland lose their South African citizenship and receive the "citizenship" of the homeland. (Provision now has been made to permit nominal citizens of the "independent" homelands to regain South African citizenship under circumstances not fully defined.) An estimated 8 million blacks have lost South African citizenship under this policy by South African legislation granting "independence" to four homelands: Transkei (1976); Bophuthatswana (1977); Venda (1979); and Ciskei (1981). The Government has said it has no plans to abolish the homelands system. An estimated 10 million blacks live in townships near white urban areas. Their only voting rights are those granted under the Community Councils Act of 1977 and the Black Local Authorities Act of 1982. The Black Local Authorities Act of 1982 elevated the legal status of black municipal authorities to that of white municipal governments. It did nothing, however, about the critical problems of inadequate financial resources and the lack of political credibility faced by black local government. Much of the violence in black townships in 1986 was directed at black town councillors and black policemen who were viewed by many blacks as collaborators with the South African Government. In many areas, town councils resigned because of community opposition, which often took the form of political violence. In 1985, Parliament passed legislation to replace all-white provincial councils with multiracial regional services councils (RSCs), which were to include representatives of black, Asian, and "colored" local governments. The government has had difficulty drawing authentic black leaders into the RSCs. The government characterizes RSCs as a "devolution" of power to local bodies. Many people regard them as barriers to greater democracy in local government. In Natal Province, the Indaba, a convention in which all racial groups and a range of social and political organizations are represented, met for several months in 1986 on a proposal for a new constitution for the province. The proposal (among other provisions) provided for a bill of rights with firm constitutional guarantees of individual liberties. It also proposed a universal franchise and a bicameral legislature in which the larger chamber would be elected on a one-person, one-vote basis, and the smaller chamber would represent specified ethnic groups with veto rights over certain affairs affecting them. The leader of the ruling National Party for Natal Province rejected the terms of the Indaba proposal when it was first announced. Indaba leaders later presented the proposal to the government, where it remains "under study." Human Rights The human rights situation in South Africa deteriorated from 1985 to 1989. Throughout this period, political discontent and violence have persisted in black and colored townships. Following the July 1985-March 1986 state of emergency, the government imposed a new state of emergency in June 1986 for 1 year, which has been extended for each of the 3 succeeding years. Under the state of emergency, police and military exercise extraordinary arrest and detention powers. Further, legislative amendments passed in 1986 give the executive branch broad emergency powers even without declaring a state of emergency. Human rights groups estimate that at least 846 people died as a result of political unrest between June 1987 and June 1988, compared with 695 in the same period a year earlier. In mid-1988, human rights groups asserted that more than 30,000 people had been detained since the June 1986 declaration of a state of emergency and that an estimated 1,500 remained in detention at the end of the year. Following a series of hunger strikes and negotiations between the government and community leaders, most of the detainees had been released by mid-1989. Leaders of the opposition United Democratic Front (UDF), a coalition of more than 700 antiapartheid groups, and various black trade unions have been special targets for detention under the emergency decree. In February 1988, the government effectively banned the UDF and 16 other leading antiapartheid groups and prohibited the Congress of South African Trade Unions, the country's largest labor organization, from participating in "political" activities. At the end of 1988, 32 opposition groups had been effectively banned. Throughout the state of emergency, reports of officially sanctioned acts of violence against dissidents have been widespread. The banned African National Congress (ANC), most of whose leadership was in exile, imprisoned, or operating underground within South Africa, proclaimed 1986 as a year of intensified armed struggle against apartheid. In 1986, the ANC claimed responsibility for a number of acts of urban violence and landmine explosions in rural areas, although it has often equivocated on its responsibility for incidents that involved civilian deaths. The ANC also has called on blacks to overthrow the government by concerted acts of violence, notably against black police and township officials, in attempts to make the townships "ungovernable." The ANC has admitted responsibility for some bomb attacks that shook South Africa in the first half of 1988. Attacks against "soft targets"-theaters, restaurants, sports facilities-increased in late 1988, but the ANC described these as aberrations from its policy. The number of such attacks in 1989 was negligible. The government released two elderly long-term prisoners in 1988, Zeph Mothopeng, President of the PAC, and Henry Gwala, an ANC leader. Three prominent UDF activists who escaped police custody and took refuge in the US Consulate General in Johannesburg in September were allowed to leave the consulate unmolested and were granted passports for travel abroad. In December 1988, under great international pressure, the government commuted the death sentences of the Sharpeville Six, who were convicted of murder for their presence in a crowd that killed a black township official. Newly elected President F.W. De Klerk took several steps in 1989 and 1990 to demonstrate his commitment to ending apartheid, including the release of ANC leader Nelson Mandela, imprisoned in 1962 and sentenced to life in 1964 for treason and sabotage, and other political prisoners and detainees; unbanning the ANC and 32 other antiapartheid organizations; lifting some state of emergency restrictions; and allowing peaceful demonstrations. An unprecedented mass pro-ANC rally was held earlier in Johannesburg without police interference. Other opponents of apartheid, such as young black activists in the townships, have advocated and engaged in violent attacks on black township officials and others suspected of "collaborating" with the government. During the greatest unrest in 1984-85, many blacks were attacked by activists attempting to enforce protest activities such as school or consumer boycotts. These actions, in turn, spawned the creation, often with government encouragement, of black vigilante groups opposed to the young black political activists, which has led to internecine strife in a number of communities. Until De Klerk's inauguration, the government had imposed curbs on the media to limit the reporting of political unrest and antigovernment activities. In December 1986, the government tightened existing emergency regulations to prohibit reporting on a variety of politically related topics without clearance by state censors. In August 1987, it imposed further curbs permitting it to bypass the courts in banning or censoring newspapers and other journals. Several prominent U.S. and other foreign journalists have been expelled for allegedly violating these restrictions. The government continued to clamp down on the press in 1988, suspending three newspapers for one to three months. In late 1989, the government indicated that press restrictions would be reduced. A milestone event in the black struggle for equal rights occurred in August 1987 when the National Union of Mineworkers, the country's largest black labor union, struck on an unprecedented scale, shutting down about a third of the country's more than 100 gold and coal mines. The strike continued for 3 weeks, longer than most observers thought possible in view of the union's lack of resources, including the absence of a strike fund. Its leaders finally accepted a management offer of improved benefits but failed to win the wage hike and other goals they had sought. The strike nevertheless signified the importance of trade union organization and mobilization among black workers. The government rejected right-wing pressure to attempt to force the strikers back to work. And although the cost was heavy-nine people died-the strike marked a critical test of the 1979 legislation legalizing black unions and strikes by black workers. In the first half of 1986, Parliament made significant changes in the apartheid system, including abolition of influx control or "pass" laws, which for years extensively regulated the right of blacks to be present in urban areas. Parliament passed legislation permitting some blacks to regain the citizenship they had lost in previous years when some homelands were given "independence." The government also introduced a freehold system of land ownership for blacks, permitting some to own homes in urban areas designated for blacks under the Group Areas Act. Recently, the government repealed the remaining racial job discrimination decrees in the mining industry. Race remains the fundamental basis for the organization of South African society. Although De Klerk has said that he supports the eventual abolition of apartheid, the recognition and protection of group rights and interests remains central to government policy. Nevertheless, by 1990 the government and oppo-sition leaders appeared to be moving toward negotiations to end apartheid and create a new South Africa. Principal Government Officials State President-Frederik Willem De Klerk Ministers Administration and Privatization-W.J. De Villiers Agriculture-Jacob De Villiers Constitutional Development and Planning and National Education (White)-Gerrit Viljoen Defense-Magnus Malan Education and Development Aid-C.J. Van Der Merwe Environmental and Water Affairs-G.J. Kotze Finances-Barend Du Plessis Foreign Affairs-Roelof F. "Pik" Botha Internal Affairs and Manpower-E. Louw Justice-H.J. Coetsee Law and Order-Adriaan Vlok Mineral and Energy Affairs and Public Enterprises-D.J. De Villiers National Health and Population Development-E.H. Venter Planning and Provincial Affairs-Hernus Kriel Trade, Industry, and Tourism-Kent Durr Transport, Public Works, and Land Affairs-George Bartlett Ambassador to the United States-Piet G.J. Koornhof Ambassador to the United Nations-Jeremy Shearar Chairman of the Ministers' Council of the ("colored") House of Representatives-A.J. Hendrickse Chairman of the Ministers' Council of the (Indian) House of Delegates-Jayaram N. Reddy The Republic of South Africa maintains an embassy in the United States at 3051 Massachusetts Avenue, NW, Washington, DC 20008, (202) 232-4400. ECONOMY Until well into the 19th century, most South Africans, black and white, lived primarily by herding and farming. The discovery of diamonds in 1867 and gold in 1886 helped create South Africa's industrial age. Rapidly growing mineral industries promoted the development of cities and the concentration of workers by the hundreds of thousands. Today, South Africa is an industrializing country with most of the characteristics associated with developing economies-a division between formal and informal sectors, uneven distribution of wealth and income, a dependence on commodity exports, and a legacy of government intervention. Despite its highly visible modern sector, South Africa is not a wealthy country, with a population of 37 million and a GDP of $83.5 billion. It is comparable in size and per capita income to South Korea. South Africa has a well-developed formal sector based on mining and manufacturing and a smaller, but important ,sector based on agriculture and services. Despite the presence of a free-market ideology, South Africa has a mixed economy, with substantial government intervention existing jointly with a strong private sector. Economic policy has concentrated on the formal sector, but since the mid-1980s it has turned to developing the informal sector through education and training, job creation, and assistance to small businesses. The South African economy has evolved as part of the broader Western industrial economy. The cyclical economic fortunes of South Africa have depended largely on demand from the Organization of Economic Cooperation and Development (OECD) for its exports, the world gold price, and foreign capital inflows. At the time that it became a republic in 1961, South Africa's exports equalled almost a third of GDP, with more than 90% of these exports going to OECD countries. As the following data indicate, during the quarter-century since, the real growth rate has correlated with the performance of the major industrialized economic powers (Canada, France, West Germany, Italy, Japan, United Kingdom, and the United States). South Africa's economy has slowed despite a rise in the price of its key export, gold, from $35 an ounce in the 1960s to an average of $130 in the 1970s and $450 in 1980-1985. South Africa's economy has suffered primarily because of slower growth in export demand, a severe drought in 1982-1986, a drop in the price of gold, and a shortage of foreign exchange. Economic sanctions also have worked to depress economic growth (see page 9). Most economists agree that long-term economic recovery will continue to be undermined by rising inflation and unemployment and by balance-of-payments pressures. Financial Policy The financial structure and financial institutions in South Africa are extremely sophisticated, mirroring those found in a developed economy, including an effective stock exchange that handles large volumes of gilt and semigilt securities, in addition to private scrip. The South Africa Reserve Bank performs all central banking functions. Its customers are limited to government agencies, private banks, and discount houses. The Reserve Bank is semi-independent of government control but in practice works closely with the Department of Finance and the State President in formulating and implementing government policy. The private financial structure is equally sophisticated, and the full spectrum of financial institutions is found in the country. Five firms dominate retail banking. A money market with four private discount houses operates along the lines of the London discount market. South Africa also has a strong building society movement, which has traditionally provided a major part of the finance requirements for private home ownership. Private pension funds and long-term insurers are important savings institutions. South African monetary policy for the most part attempts to emphasize market forces, including a managed float of the rand, some deregulation of banking activities, money-supply growth targets, and market-related interest rates. Fiscal policy is less controlled, with a history of increases in government spending as a percent of GDP and deficits in the range of 4% to 5% of GDP in the last several years. In early 1985, growing international nervousness over South Africa's political situation led some foreign banks to refuse to roll over South African debt repayments. This caused the value of the rand to plummet, threatened the country with an uncontrolled outflow of capital, and led the government to suspend principal repayments on $14 billion of South Africa's $24 billion in foreign debt. To stabilize the value of the rand and act as a barrier against capital outflow, South Africa reintroduced a dual exchange rate system. The exchange rate for the financial rand applies to all capital funds leaving or entering South Africa. A separate exchange rate for the commercial rand was established for use solely within the country. Decreasing foreign investment has led to reduced demand for the financial rand, which usually trades at a considerable discount vis-avis the commercial rand. In 1987 and in 1989, the South African Government was able to reach 3-year agreements with major commercial creditor banks for repayment of the debt. The dual-rand exchange rate system remains in practice. Foreign Trade Despite the development of a diversified manufacturing sector, South Africa retains its historic pattern of importing mainly manufactured capital goods and exporting raw and semiprocessed mineral and agricultural products. Top trading partners in 1988 were West Germany and Japan, with the United Kingdom and the United States next. South Africa's trade with Western countries has come under a variety of well-documented stress: declining Western demand for its traditional commodity exports (coal, iron, steel, sugar, corn, wine); trade sanctions and boycotts; an embargo on foreign financial capital; and South Africa's foreign currency exchange controls. As a result, South Africa's growth potential has been reduced, creating a new urgency for economic reform while narrowing the options for promoting structural change. Sanctions South Africa has been the target of restrictions because of opposition to apartheid. By executive order and legislation, the United States has imposed increasingly stringent sanctions over the last 25 years, including prohibitions on new investment; loans to the South African Government's importers of iron, steel, krugerrand gold coins, textiles, uranium, and products produced by "parastatal" organizations; and crude oil exports, petroleum products, some computer technology, and arms. By mid-1988, the US share of South Africa's foreign trade had plummeted to 7.5%, far below its 1978 peak of 17.2%. South Africa has proved adept at circumventing sanctions. Oil continues to reach the country through third-party arrangements, and a UN arms embargo in place since 1977 has led to the development of a strong local armaments indus-try, which now exports arms. Foreign Investment Foreign private investment is important to South Africa's economic development. In recent years, South African officials estimate that about 10% of new investment capital has been obtained from foreign countries. Foreign investment is concentrated in mining, manufacturing, and petroleum processing and distribution. Book value of US investment at the end of 1987 was $1.5 billion. Under the Comprehensive Anti-Apartheid Act of 1986, the US Government prohibits new investment in South Africa. An exception is allowed for private investment in South African firms owned by black South Africans. US firms already present in South Africa are required to adopt fair labor standards that prohibit discrimination in the workplace and provide assist-ance and training to black employees and other blacks. All US firms with investment in South Africa must register with the Department of State and submit a completed questionnaire that describes their efforts to comply with the fair labor standards. Firms judged to be failing to comply are denied US export-promotion assistance worldwide. Americans considering investment in black-owned businesses in the so-called independent homelands of Transkei, Ciskei, Bophuthatswana, or Venda should be aware that the United States can offer no diplomatic or consular assistance in such areas. The US Government does not recognize the local "homeland governments" and has no official contact with them. Employment South Africa's sluggish growth has inhibited its ability to create new jobs. From 1970 to 1987, total nonagricultural employment grew an average of 1.1% a year. Between 1978 and 1987, the average employment growth rate was only 0.4%, well below the growth in the labor force. Many analysts estimate South Africa will need a 5% real annual growth rate just to keep pace with the number of new black entrants into the labor market. Given South Africa's long-term economic problems, 5% is considerably higher than appears likely. Assuming the average GDP growth rate at 3% a year, a better rate than in recent years, some 6 million South Africans, almost all of them black, will be unemployed by the year 2000. The South African Government has attempted to alleviate employment problems by eliminating reservation of certain jobs for whites, legalizing black labor unions, spending more on black education, and offering incentives for on-the-job training. Key Sectors Minerals. South Africa is endowed with a variety of minerals. It is the world's leading producer of gold, gem diamonds, vanadium, and ferro-chromium, and a major producer of platinum-group metals, titanium, antimony, asbestos, and manganese. South African reserves of manganese, platinum-group metals, and chrome ore are each greater than half of the world's known supplies; reserves of gold are almost half of total known world reserves. Mining, and in particular gold mining, is the most critical sector in the South African economy. Gold typically accounts for about 40% of all export proceeds, and other minerals account for a further 20%. Total exports represent between one-fourth and one-third of GDP, and domestic growth is to a considerable degree still led by export demand. Inadequate petroleum resources are a cause of concern to this otherwise mineral-rich country. Following extensive exploration efforts, limited commercially promising petroleum deposits have been found in the offshore areas adjacent to Mossel Bay. Natural gas deposits are being developed in the Mossel Bay area. As of now, no commercial production of oil has occurred, but exploration continues on and offshore. South African officials have long been aware of the vulnerability of their country to a petroleum boycott and have built a substantial strategic oil reserve. They also have stressed the necessity of using coal for energy. Domestic coal provides about 75% of the country's energy needs and may provide more in the future. South Africa's SASOL corporation provides a coal gasification/liquefaction process to produce petroleum products and is capable of providing an estimated 50% of South Africa's petroleum requirements. Manufacturing. South Africa has the most extensive and diversified manufacturing sector in Africa. Manufacturing accounts for 19% of the country's GDP. Most goods produced in South Africa are destined for the domestic market. Although the public sector is involved in manufacturing through parastatal corporations such as ISCOR, the largest steel manufacturer, most manufacturing is in the private sector. Investment in the manufacturing sector has fallen steadily, with real net fixed investment turning negative in 1985--86. In short, it was inadequate even to cover depreciation in those years, and the physical capital stock shrank. Moreover, the investment that has occurred has tended to substitute capital for labor, which has further hindered job creation. Agriculture. Except in periods of extreme drought such as 1982-86, South Africa has been a net food exporter. About 30% of nongold export proceeds typically come from sales of agricultural and processed agricultural products. A variety of agricultural products is produced because the country is so large and has a range of climatic conditions. Almost every kind of food crop and fiber is grown successfully. A number of major irrigation schemes enable farmers to produce crops in areas where the natural rainfall is too low. But the bulk of agricultural production is still rain-fed. Agricultural land, like residential areas, is racially zoned. Blacks can hold land only in the "independent" homelands, although a few black, Asian and "colored" farmers are found in nominally white areas. The majority of agricultural production comes from sophisticated white-owned commercial farms, yet the bulk of the agricultural labor force is concentrated in the subsistence sector of the homeland areas. Economic Effects of Apartheid. Economists agree that apartheid is incompatible with a modern, healthy economy. The multitude of laws and regulations that implement the apartheid system imposes great costs on the economy and inhibit market flexibility. Apartheid and its impact on South Africa's international status deny Pretoria the option of addressing its economic challenges without reference to broader political issues. As South Africa wrestles with this problem, observers point to the following effects of apartheid on the economy: -- Too many resources have gone into projects, programs, and policies that are motivated by ideological and racial concerns without due regard for economic realities. -- Inadequate investment has been made in "human capital," particularly to educate blacks, damaging the country's international competitiveness, among other effects. -- The continued practice of apartheid breeds instability and political upheaval. The underlying unease over the political situation in South Africa serves to undermine economic confidence and performance. As political instability has increased, it has tended to reinforce the economic difficulties. During the last several years, this occurred in several ways: -- Foreign investor confidence was damaged, leading to capital flight, disinvestment, and a plummeting rand, culminating in reimposition of foreign exchange controls and the declaration of a partial moratorium on debt repayment; domestic political upheavals thus reinforced the erosion of economic ties to the West. -- Domestic consumer and business confidence were hurt, leading to a domestic "liquidity trap," with sharply reduced purchases of durable goods, surplus industrial capacity, declining investment, and negative real interest rates; domestic political unrest thus exacerbated South Africa's deindustrialization. -- The government repressed most black political activities in a bid to end the unrest, which led to politicization of the black labor union movement and greater conflict between business and labor than might otherwise have been the case; domestic political upheavals thus may have reinforced mechanization of the narrowing industrial base. Each of these factors, in turn, feeds upon the others, creating an unhealthy political-economic dynamic. Recent government efforts to instigate some reforms may reflect the realization that South Africa's socioeconomic future otherwise would be bleak. DEFENSE The South African Defense Force (SADF) comprises four services-army, navy, air force, and medical-each headed by a lieutenant general. Most SADF personnel are white. Because of growing need for staff in the military and civilian sectors, recruitment of volunteers among other races is increasing. Only white males are subject to the draft. The SADF in 1987 had about 100,000 men on active duty, 55,000 of whom were conscripts. About 13,000 "coloreds," blacks, and Asians were serving in the military. A total of 400,000 other whites from the reserves can be rapidly mobilized for duty. The armed forces can conduct counterinsurgency and conventional operations within South Africa and in neighboring countries. Improving the quality of training and increasing the quality and quantity of military equipment are emphasized. South Africa has no international alliances. The military budget for FY 1989-90 was estimated to be rand 8.7 billion (about $3.3 billion). FOREIGN RELATIONS South African forces fought in World War I on the Allied side, and its diplomats participated in the 1919 Versailles Peace Conference. South Africa was a founding member of the League of Nations and was given a mandate to govern South-West Africa, now Namibia, which had been a German colony before the war. South Africa created a Department of External Affairs in 1927 and later that year established diplomatic missions in the main West European countries and in the United States. South African volunteer forces, including blacks, fought on the side of the Allies in World War II, took part in the Berlin Airlift, and participated in the postwar UN force in Korea. The South African Government has long stressed anticommunism in unsuccessful efforts to enlist Western countries in common defense efforts. South Africa's foreign relations have been bedeviled by its racially discriminatory domestic policies, particularly since the end of World War II. Its refusal until 1988 to allow independence for Namibia also provoked negative reaction. South Africa ignored an advisory judgment of the International Court of Justice (ICJ) in 1950 that any change in the status of the Namibian territory must receive the assent of the United Nations as the successor to the League of Nations. Ethiopia and Liberia later charged South Africa with violating its mandate, but the ICJ dismissed the case on technical grounds in 1966. Later that year, the UN declared, with US support, that the mandate was terminated and that responsibility for the territory had passed to the UN. The ICJ upheld this position in a 1971 advisory opinion. (See Background Notes on Namibia.) In 1974, the 29th UN General Assembly voted to deprive South Africa of its Assembly seat (although South Africa was not expelled from the organization) for its refusal to comply with UN and ICJ rulings on Namibia. In January 1976, the UN Security Council voted unanimously to demand that elections leading to independence be held in Namibia under UN supervision. In 1978, the South African Government agreed in principle. Nevertheless, the growing presence of Cuban forces in Angola led the South African Government to insist on the withdrawal of these forces in parallel with their implementation of UN Security Council Resolution 435, which sets out a formula for Namibian elections. A 10-year mediation by the United States among Angola, Cuba, and South Africa culminated in two agreements signed on December 22, 1988. The agreements established a timetable for the withdrawal of Cuban troops from Angola and cleared the way for South African withdrawal from Namibia. Implementation of Resolution 435 began on April 1, 1989. Elections for a constituent assembly were scheduled for November 1989, in anticipation of independence a few months thereafter. Beginning in the 1960s, South Africa attempted to improve relations with the rest of Africa, emphasizing the role that its economic and technological resources might play in the future of African development efforts. Exchanges of visits between South African leaders and those of other African countries began in the late 1960s, and various kinds of relationships were established with a number of countries. Only Malawi agreed to formal diplomatic relations. In 1988, President P. W. Botha made unprecedented visits to Mozambique, Malawi, Zaire, and Cote d'Ivoire. In recent years, South African forces have conducted military raids into Lesotho, Mozambique, Botswana, Swaziland, Zambia, and Zimbabwe. The incursions have been aimed at ANC bases and have resulted in civilian casualties. South Africa has backed antigovernment insurgencies in Angola and Mozambique and has been accused of supporting dissident elements in Zimbabwe and other neighboring countries. In 1984, South Africa signed the Nkomati Accord with Mozambique, in which each country agreed to prohibit hostile operations against the other from its territory. Mozambique has complained that the South Africans have failed to live up to their side of the bargain through continued support to RENAMO-the Mozambique resistance movement founded by Rhodesian authorities in the 1970s. More recently, relations between the two countries have improved amid signs that the South Africans were distancing themselves from RENAMO. South Africa also has agreed to rehabilitate the electrical distribution system bringing power from the Cahora Bassa Dam to South Africa, much of which has been destroyed by RENAMO. South Africa has no diplomatic relations with any communist country. The Soviet Union broke off relations in the 1950s. With the advent of "new thinking" in Soviet foreign policy, the USSR, through its role as an observer during the Angola-Namibia negotiations, has begun informal contacts with South Africa. The Soviet Union also participates in the Joint Commission that oversees implementation of the Angola-Namibia agreements. A Soviet Deputy Foreign Minister visited South Africa unofficially in early 1989. International pressure on South Africa has intensified in reaction to three major outbreaks of violent protest and government repression: in 1960-61, when demonstrations broke out in the aftermath of the Sharpeville massacre, in which 69 black protesters were shot dead during peaceful protests; in 1976-77, when Soweto students revolted and protests again swept across the country; and since 1984, because of Government action to suppress dissent by declaring states of emergency. By 1987, South Africa faced economic sanctions in place by the United States, members of the European Community, the Nordic countries, and many Third World countries. US-SOUTH AFRICAN RELATIONS The United States has maintained an official presence in South Africa since an American consulate was opened in Cape Town in 1799 (the fifth on the African Continent). US Consulates General are in Johannesburg, Durban, and Cape Town. The US Embassy in Pretoria moves to Cape Town during parliamentary sessions. In addition to official relationships, Americans and South Africans have many nongovernmental ties. For example, black and white American missionaries have a long history of activity there, and the United States has long been one of South Africa's leading trading partners. During the last 20 years, however, US-South African relations have been increasingly affected by South Africa's racial policies, which are antithetical to the US commitment to racial justice and human rights. The United States believes the denial of all political rights and equal economic opportunity to the black majority of South Africa to be a major factor of instability in southern Africa. The United States attaches great importance to good relations with other African countries, all of which oppose South Africa's racial policies. If South Africa's policies are unaltered, the United States predicts progressively violent racial confrontation and the possible introduction of great-power rivalry into the region, to the detriment of all of its inhabitants. To demonstrate US opposition to apartheid and to support peaceful change toward racial justice, the United States has imposed restraints on relations with South Africa. Since 1963, the United States has embargoed arms sales to South Africa, and in 1977 it supported the UN Security Council's imposition of a mandatory international arms embargo on South Africa. In February 1978, the US Government issued regulations (in compliance with, but going beyond, the Security Council resolution) to prohibit exports destined for the South African military, the police, or apartheid-enforcing agencies. These were revised in early 1982 to enhance enforceability. On October 2, 1986, Congress passed the Comprehensive Anti-Apartheid Act of 1986. This act widened sanctions against South Africa, including a ban on new investments unless they were in firms owned by black South Africans. South African Airways' landing rights in the United States were terminated, loans to the private sector in South Africa were banned, and a prohibition on imports of iron, steel, textiles, food, sugar, and other agricultural products was introduced. The legislation prohibited export of crude oil and petroleum products to South Africa. By 1987, US sanctions were the toughest of any of South Africa's major trading partners. In late 1989, the Bush Administration recommended to Congress that additional sanctions not be enacted in view of steps being taken within South Africa to bring about change through peaceful means. The United States has refused to recognize the "independence" of Transkei, Bophuthatswana, Venda, and Ciskei and has said that it will not recognize the "independence" of any of the South African homelands. The United States opposes the homeland policy because it arbitrarily denies South African citizenship to most blacks residing in those areas. Moreover, it allocates less than 15% of the land area to the almost three-fourths of the population that is black. In addition to these restraints, the United States has sought to encourage peaceful evolution in South Africa toward a government based on the consent of all those governed by it, regardless of race. The United States maintains contacts with political opposition groups within and outside South Africa, trying to convince all parties that negotiated change is preferable to violence. In January 1987, then-Secretary of State Shultz met in Washington with ANC President Oliver Tambo. In May 1989, President Bush met with Archbishop Desmond Tutu and other clergymen prominent in the struggle against apartheid. The United States has repeatedly called for the release of all political prisoners, as well as the lifting the state of emergency, viewing these actions as necessary first steps toward meaningful negotiations. Meanwhile, the US Government sponsors an assistance program whose aim is to help South Africans disadvantaged by apartheid. The program is conducted entirely outside South African Government channels. In fiscal 1989, about $35 million was programmed for projects in education, human rights, labor, black enterprise, and community development. Principal US Officials Ambassador-William L. Swing Deputy Chief of Mission and Minister-Counselor-Genta Hawkins Holmes Economic Counselor-Stephen H. Rogers Political Counselor-Robin Raphel Public Affairs Officer-Kent Obee Defense Attache-Lt. Col. Michael Fergunson Administrative Counselor-Andrew J. Winter AID Director-Dennis P. Barrett Agricultural Attache-Roger Puterbaugh Consul General, Cape Town-Charles R. Baquet, III Consul General, Durban-F. Allen Harris Consul General, Johannesburg-Peter R. Chaveas. The African National Congress (ANC) The African National Congress (ANC) is a predominantly black South African political and paramilitary organization, founded in 1912. It is the oldest organization opposing legalized racism and white rule and was banned by the South African Government from 1960 to 1990, operating underground and in exile. The ANC was founded with the objectives of eliminating all restrictions based on color and obtaining black representation in Parliament. In its first 50 years of existence, the ANC staged demonstrations, strikes, petitions, and other peaceful protest, all of which made it a target for police harassment and arrest. After the National Party came to power in 1948, with its doctrine of white supremacy and apartheid, ANC membership grew rapidly, rising to more than 100,000 by 1952. In that year, Chief Albert Luthuli was elected president general of the party. He was awarded the Nobel Peace Prize in 1961. In 1960, the ANC, along with a splinter group known as the Pan Africanist Congress (PAC), organized mass demonstrations to protest the pass laws that for years regulated the right of blacks to be present in urban areas. In one of these protests, at Sharpeville, south of Johannesburg, police opened fire and killed 69 demonstrators. Scores were wounded. Subsequently, the ANC and the PAC were outlawed. Denied legal avenues toward political change, the ANC turned first to sabotage and then began to organize for guerrilla warfare. Nelson Mandela, a black lawyer and ANC leader, was the most prominent of the ANC members who were arrested, tried, and convicted for treason in 1964. Following the release in October 1989 of Walter Sisulu and other longtime fellow prisoners, the release of Mandela was expected to occur by early 1990. Mandela, along with the current president, Oliver Tambo, who operates from exile in Zambia, are the best-known leaders. Long-term aims of the ANC were set forth in the "Freedom Charter," which was adopted in 1955. This document states that the ANC's ultimate goal is a liberated, nonracial South Africa in which individual rights would be guaranteed and nationalization of certain industries would occur within a basically mixed economy. In 1988, the ANC published draft constitutional guidelines that expounded on the ideas expressed in the Freedom Charter but contained less rigid views on South Africa's economic future. The South African Communist Party has aligned itself with the ANC since the civil disobedience campaigns of the 1950s and remains a significant influence within the organization's leadership. But the Communist Party is only one element in the coalition of interests in the ANC. The Soviet Union and its allies have provided arms to the ANC to conduct its insurgent campaign, while the Scandinavian countries provide nonmilitary assistance. The South African Government has depicted the ANC as terrorists and puppets of Moscow and has across borders of neighboring countries at ANC guerrilla bases. The United States has maintained contacts with the ANC, just as with other black opposition groups, for some time. The freeing of Nelson Mandela and the unbanning of the ANC in February 1990 were first steps by the Government toward negotiations leading to a more just society in South Africa. What is Apartheid? In the language of the ruling white Afrikaners in South Africa, "apartheid" means "apartness." Since 1948, when the National Party assumed power, apartheid or "separate development" has been the policy that governs relations between South Africa's white minority and black majority (although the South African Government now rarely uses these terms in official communications). It sanctions racial segregation and political and economic discrimination against all who are not white. The National Party extended racial segregation through passage of a number of legislative acts soon after it came to power in 1948. In the 1960s and the 1970s, other laws were passed to make every black African, irrespective of actual residence, a hypothetical citizen of one of 10 homelands created by the South African Government as political entities to which blacks would be arbitrarily assigned. This device excluded blacks from the South African body politic. By the early 1980s, four of the homelands-Transkei, Ciskei, Bophuthatswana, and Venda-had been granted "independence" as "national states." No government except South Africa recognizes the four homelands as independent. All 10 remain politically and economically dependent on South Africa. In 1950, the white Parliament passed the Group Areas Act, which established residential and business sections in urban areas for each race and strengthened existing "pass laws," which require blacks to carry documents authorizing their presence in restricted areas. Other laws were enacted to forbid most social contacts between the races, mandate segregated public facilities, establish separate educational standards, restrict each race to certain kinds of jobs, curtail black labor unions, and abolish nonwhite participation (through white representatives) in the national government. The Population Registration Act of 1950 required the classification of every individual born in South Africa according to race: white (European), Asian (Indian), "colored" (mixed-race), or African. Apartheid over the years has become an infamous term that signifies institutionalized injustice based on racial discrimination. Antiapartheid actions and campaigns have been undertaken within and outside South Africa to protest the continued deprivation of political rights and economic justice affecting the majority of South African inhabitants Travel Notes The Department of State advises US citizens that the political situation in South Africa remains tense. A state-of-emergency with severe restrictions on the antiapartheid opposition and the media has been in effect since 1986. Visitors should be aware that antiapartheid demonstrations are often met with force by security officials and that the potential for violent clashes always exists in such situations. Many forms of political gatherings and other expressions of dissent are prohibited or are subject to strict control. State of Emergency regulations allow security officials to detain persons whom they consider a threat to public order and hold them indefinitely without charge. Foreign nationals, including US citizens, are not immune from such detention. Severe restrictions have been placed on the reporting or photographing of antiapartheid activities or incidents of unrest. US citizens should exercise extreme caution in photographing or filming any assembly that could be construed as antigovernment. Travel to the areas most frequented by tourists, such as city centers, game parks, and beaches, generally is safe. Although bomb explosions have been numerous in recent years against civilian targets, including shipping centers and bus terminals, the frequency of such bombings appears to be diminishing. Travel to the "independent" homelands of Bophuthatswana, Venda, Ciskei, and Transkei is discouraged. The South African Government claims these areas are independent countries, but the United States and all other countries have refused to recognize their independence. Homeland officials often deny or limit access by US consular officials to US citizens under arrest or otherwise in distress in these areas. These officials have not consistently notified US consular officials when American citizens have been arrested in the homelands. Because of the potential for fast-changing political developments, US citizens who live in South Africa or visit for an extended period should register upon arrival at the US Embassy in Pretoria or the US Consulates General in Johannesburg, Cape Town, or Durban. Climate and clothing: Clothing suitable for central and southern California is appropriate for South Africa's mild climate. Remember that seasons in the southern hemisphere are reversed: winter there corresponds to summer here and vice versa. Customs: US citizens must obtain visas before arriving. No immunizations are required, except for yellow fever if the traveler passes through an infected area. Health: The standard of community sanitation is high, and city water is potable. A cholera immunization is recommended for travelers visiting an infected area. Avoid swimming in fresh water, which may be infested with bilharzia. Telecommunications: Telephone service in South Africa is good, and cities have direct-dial systems. Calls to the United States can be dialed directly, and connections usually are good. South Africa is 7 hours ahead of eastern standard time and 6 hours ahead of eastern daylight savings time. South Africa does not observe daylight saving time. Transportation: South Africa has a modern transportation network, including regularly scheduled flights, trains between major cities, and excellent paved highways. Tourist attractions: Major attractions include Kruger National Park for game viewing; the Cape Peninsula, including the national park at the Cape of Good Hope; and the sandy beaches of Natal. Most outdoor activities are available, ranging from hiking and mountain climbing to tennis and cricket. The major cities offer various cultural attractions, such as theaters, art galleries and museums. National holidays: Shops and businesses may be closed on the following holidays. New Year's Day January 1 Founders' Day April 6 Good Friday* Easter Monday* Ascension Day* Labor Day May 1 Republic Day May 31 Kruger Day October 10 Day of the Vow December 16 Christmas Day December 25 Day of Good Will December 26 *Dates vary. Further Information These titles are provided as a general indication of the material published on this country. The Department of State does not endorse unofficial publications. Adam, Heribert and Kogila Moodley. South Africa Without Apartheid. Berkeley: University of California Press, 1986. Adams, H., and H. Giliomee. The Rise of Afrikaner Power.Cape Town: David Philip, 1979. Baker, Pauline H. "The United States Policy in Southern Africa." Current History. Vol. 86, No. 520, May, 1987. Berger, Peter L. and Bobby Godsell. A Future South Africa. 1989 De Klerk, F. W. The Puritans in Africa-A Study in Afrikanerdom. London: Collins, 1975 Gordon, L., ed. Survey of Race Relations in South Africa. Johannesburg: South African Institute of Race Relations, annual. Lelyveld, Joseph. Move Your Shadow. New York: Time Books, 1985. Lodge, Tom. Black Politics in South Africa Since 1945. Braamfontein: Raven Press, 1983. Michener, James A. The Covenant. New York: Random House, 1980. Official Yearbook of the Republic of South Africa. Johannesburg: Chris van Rensburg Publications, annual. Omond, Roger. The Apartheid Handbook. Harmondsworth, Middlesex, England, NY, Penguin Books, 1985. Pakenham, T. The Boer War. London: Weidenfeld and Nicolson,1979. Paton, Alan. Cry, the Beloved Country. New York: Scribner,1948. Rotberg, Robert I. South Africa and its Neighbors: Regional Security and Self Interest. Lexington, MA.: Lexington Books, 1985. Skinner, Elliot. Beyond Constructive Engagement. New York: Paragon House, 1986. Study Commission on US Policy Toward Southern Africa. South Africa: Time Running Out. Berkeley and Los Angeles: University of California Press, 1981. Wilson, Francis and Mamphela Ramphele. Uprooting Poverty: The South African Challenge. New York: W. W. Norton, 1989. Average Real Growth Rate 1960-69 1970-79 1980-85 Group of 7 GDP 5.6 3.6 2.2 South Africa GDP 5.7 3.4 1.9 South Africa Exports 4.7 3.7 0.9 Available from the Superintendent of Documents, US Government Printing Office, Washington, DC 20402: American University. South Africa-A Country Study. 1981. US Department of Commerce. "South Africa" Foreign Economic Trends and Their Implications for the United States. Semiannual. US Department of State. Background Notes on Namibia. January 1987. Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Editorial Division -- Washington, D.C.-- March 1990 Editor: Jim Pinkelman Department of State Publication 8021 Background Notes Series -- This material is in the public domain and may be reprinted without permission; citation of this source is appreciated. For sale by the Superintendent of Documents, US. Government Printing Office, Washington, DC 20402.