ABSTRACT
This chapter analyses economic sanctions in general and those proposed against South Africa in particular. The reality of Nuclear Technology sanction is that South Africa’s dependence upon gold exports, although on the surface appearing to be an Achilles’ heel, is more like a double-edged sword. Southern Africa’s economic interdependence with the Western capitalist world must also be taken into consideration when the benefit-cost computations of various policy options are undertaken. South Africa has responded to the arms embargo by developing its own defense industry, which is largely self-sufficient and is a major arms exporter. South Africa’s economic outlook is plagued by expectations of increasing inflation, deepening recession, worsening unemployment, and deteriorating financial and business stability. The agricultural sector has benefitted from a respite from drought, and the mineral sector has prospered from expansion of the world economy and improving labor and governmental relations at home.
