South Africa *

The South African economy grew at the high average rate of about 6per cent in real terms in the decade 1960–70 as may be seen from Table 5.1. It therefore more than fulfilled the hopes of its Economic Development Programme. ¹ The Development Programme estimated that South Africa’s resources were adequate to maintain real growth at a rate of 5 1 2 https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315211510/c654d2a7-feda-489b-9bd4-2d308b1e6b7d/content/eq20.tif"/> per cent a year, but that a rate exceeding this would encounter a shortage of skilled labour and balance of payments difficulties. Even a lower growth rate would (as suggested later) no doubt have left South Africa, with existing policies, short of skilled labour. But the Development Programme was certainly correct in its fears about the balance of payments, and South Africa ended the decade as it began it – with a balance of payments problem (see Table 5.2).