[misc.headlines.unitex] <3/3> ACTIVITIES OF TRANSNATIONAL CORPORATIONS IN SOUTH AFRICA

unitex@rubbs.fidonet.org (unitex) (09/12/89)

     system of apartheid, Mr. Von Roon asked, in turn, if there was
     evidence of nuclear co-operation. The ICC had not the slightest
     information on any such co-operation.

     He said the political environment in South Africa was such that
     all had to take a stand.  The ICC had a long standing record
     against apartheid;  it was working for black empowerment in all
     respects, including employment and housing conditions.

     Asked if any transnational corporation in South Africa was
     prepared to act against recent anti-union laws enacted by South
     Africa, Mr. Von Roon said the ICC was strongly opposed to any
     constraint imposed on unions.

     He was asked to comment on the setting of political conditions
     for the renegotiation of South African loans;  he said it would
     be difficult to combine political conditions with hard banking
     facts.

     RUDOLPH GRUBER, Director of the South Africa Foundation of the
     Federal Republic of Germany, said apartheid was politically
     unacceptable, economically unworkable and socially unjust.
     Apartheid was a dying institution.  The decisive element in its
     demise was likely to be demography.

     He said black urban dwellers would increase from 11 million to 27
     million by the end of the century.  The population of Cape Town
     alone had doubled over the past six years.

     Even if the whites wished to maintain their powers and privileges
     by force, they would be unable to do so, given such population
     growth and urban shifts.

     A black-led government was an historic unevitability.  Given this
     fact, the question of disinvestment and related actions acquired
     different dimensions.  A new black-led Government may not be
     able to cope.

     He said the shortfall in black housing was already such that some
     2 million units would need to be built by the year 2000 in order
     both to eliminate the backlog and cater for the natural increase
     in demand.  This represented a construction rate of 3,000 new
     homes for every week until the end of the century.  In l986, the
     last year for which reliable figures are available, the public
     and private sectors together managed to complete 500 new units
     each week.

     The backlog of classrooms in schools in l987 already totalled
     43,131, he continued.  With the enrolment of black school
     children alone rising by some 300,000 per annum, there was no
     way by which this shortfall could be reduced. Merely to cope
     with the natural increase would require the completion of 30 new
     classrooms - or a school large enough to house 1,200 pupils - on
     every working day of the year.  Such was the dimension of the
     problem, that the entire national budget would not suffice to
     put matters right, if it were spent on nothing else until the
     end of the century.

     As a developing country whose domestic savings were insufficient
     to meet its investment needs and whose economic growth was thus
     dependent upon its capacity to borrow capital, hire skills and
     acquire technology from elsewhere, South Africa needed access to
     such sources of supply if it was to progress to the point of
     self-sustaining growth, he said.  By making it a net exporter of
     capital and skills, the international sanctions campaign had
     caused South Africa to consume its own seed-corn, and thereby
     reduce the capacity of a future black-led Government to contain,
     let alone overcome, the problems of housing, education, health
     care and job creation that would beset it.

     Transnational corporations were not the major players in the
     South African economy, but their international connections,
     especially their ready access to investment capital, management
     skills and hi-tech, made them an important innovative and
     locomotive force.  If they were obliged to disinvest for
     political reasons, they would not readily return later unless
     business prospects were particularly good.  Since this was
     unlikely to be the case in a post-apartheid society for the
     reasons he had stated, their departure was almost certain to be
     irreversible.  This was the case in Zimbabwe after independence,
     and could be relied upon to repeat itself in South Africa.
     Disinvestment might shorten the life of the old order, but this
     would be marginal at best.  It would unquestionably weaken the
     prospects of the new order, whose coming was not in doubt but
     whose survival and success very much were.  The real victims of
     disengagement and disinvestment, in short, were those very
     people for whose liberation from deprivation and discrimination
     such steps were purportedly being taken.

 * Origin: UNITEX --> Toward a United Species (1:107/501)

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