ABSTRACT
The abolition of the apartheid system in South Africa changed the economic playing field, resolving old problems while creating new ones. Economic growth in South Africa during the first half of the twentieth century was built on a combination of low wages, high capital formation, tariff protection and government intervention. The apartheid system was converted from an engine of growth into a brake. The differences were created by the apartheid system. The socially distorting effects of the apartheid system led to strong demands for measures that remedied the inequitable situation in all the areas. The abolition of apartheid did not entail any major gains that was used for social purposes. Self-sustained growth in the South African economy was created only in the long run and only the government mastered the macroeconomic stabilization problems. During the third quarter of 1994, however, it looked as if South Africa was heading back to its traditional position for the first time in nine years.
