ABSTRACT
This chapter explains that discrimination was not new in South Africa, however, having been a feature of that part of the African continent since the arrival of the first European settlers in 1652. National Party president, Frederik Willem de Klerk, finally realized that the apartheid system had no role to play in the new dispensation and had to be relegated to history. It was incapable of projecting a credible view of what the new South Africa looked like. The chapter examines some of the most important economic issues confronting the new leaders in South Africa. The autonomy of the bank is guaranteed in the new constitution, which means that since the main task of monetary policy is that of combating inflation the bank easily pulled in a direction that was likely to hamper growth. The growth constraint on redistribution and social spending became stronger, while emphasis on growth was even more pronounced to proceed continuing to enliven it.
