COUNTRY RISK: SOUTH AFRICA

Country risk: South Africa

Country risk: South Africa

Introduction

South Africa's government goes back to 1910; this is when the Union of South Africa was formed. Congress was the actual decision maker even though there was a monarch on the throne. South Africa and other British Commonwealths were given their freedom from Britain and became a republic in 1961. Once the new republic was established so was a democratic government that consisted of a president and a three- house parliament. But unfortunately there was no minority representation in the newly established government. This set a precedent that encouraged discrimination  and the upcoming apartheid. Apartheid is the name given to the system of segregation that was instituted by the government against the minorities of South Africa. Segregation was evident in all aspects of South African life such as employment, education and where the segregated were allowed to live and who they were allowed to marry. The minority population was forced to work low wage jobs and was not allowed to attain higher education. This was also mirrored in the nonparticipation of minorities in government and in cultural affairs.

Economic Risk

The South African government is considered as a model among African countries. Their belief was that the races should be separated in order for the society to work and those minorities should be oppressed in order to keep control within the country.

At that time, a huge number of people were against the presented ideology. Uprisings began in protest of apartheid through boycotts, demonstrations and strikes. Violence became the norm, and many lives were lost. This became a daily visual on the news that was broadcasted internationally. Therefore, many countries decided to impose sanctions and tariffs on South Africa. This in turn, isolated South Africa from the rest of the world community.

Health Of Economy

In 1962, the United Nations General Assembly urged its members to break diplomatic and economic ties with South Africa until Apartheid was abolished. During the 1980's, a widespread economic boycott of South Africa took hold. In response to domestic and international pressure, South Africa began repealing apartheid laws in the 1970'sand 1980's. (Ihrig 2004)Finally, apartheid laws were repealed in 1991 due to internal protests and international pressure upon the government of South Africa. This was a victory for the ethnic groups of South Africa, but discrimination is still a part of life in this country. The official languages of South Africa are African and English.

Education

The quality of education for whites was far more superior to that of non- whites. Once apartheid was repealed, there was only one education system that allowed equality for all of the students that attended. Even though, apartheid has been repealed, it has left a legacy of racism, but it has not affected the fact that the country is full of resources that have drawn foreign direct investors to South Africa. South Africa was strictly known for being a producer of raw materials such as gold and diamonds.

Inflation

As time has passed, the economic environment has changed from one of an agricultural economy to an industrialized economy. This is due to the insurgence of metal and engineering industries that have taken South Africa from strictly being known for its raw materials only to an axis of commercial manufacturing.

Apartheid had a detrimental effect on the progression of the ability of South Africa to be competitive due to the sanctions and tariffs that were imposed upon ...