The South African Economy: Coping with the Legacy of Apartheid

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Case Details:

Case Code : ECON018
Case Length : 19 Pages
Period : 1994-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : -
Industry : -
Countries : South Africa

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Subsequent Policy Initiatives

By 2000, the government was able to achieve many of the goals set under the RDP (Refer Exhibit VII for achievements of the RDP between 1994 and 2000); however, unemployment and poverty continued to remain high and threatened to negate the progress made. While a majority of whites continued to live in prosperity, a large section of the blacks continued to live below the poverty line. In fact, in 2001, it was estimated that 57% of blacks in South Africa lived below the poverty line, while only 2.1% of whites were poor. In other words, the economic disparities had not lessened significantly from the apartheid era.

A Finance Ministry budget review document, released along with the 2000-01 budget in February stated - "South Africa remains one of the most unequal countries in the world, with the poorest 40 per cent of households still living below the minimum household subsistence level."..


South Africa was a unique country in many ways. While some regions in the country had infrastructure and prosperity levels comparable to developed countries, other regions were worse off than the least developed countries. There were extreme disparities in income and wealth among the race groups, as a consequence of the apartheid system. However, even thirteen years after the death of apartheid, these disparities remained as glaring as ever. Though in 2005 and 2006, South Africa's economy grew by around 5%, poverty and unemployment rates were still at high levels...


Exhibit I: Information on South Africa
Exhibit II: The Aims and Objectives of the ANC
Exhibit III: A Comparison of the Status of Blacks and Whites under Apartheid in 1978
Exhibit IV: Socio-Economic Objectives under the RDP
Exhibit V: South Africa: Main Economic Indicators (1995-2000)
Exhibit VI: A Comparison of Incomes (in 2001)
Exhibit VII: RDP Achievements between 1994 and 2000
Exhibit VIII: Economic Indicators in the 2000s
Exhibit IX: GINI Coefficients for South Africa and Brazil, 1995-2002
Exhibit X: Ranking of Countries on the Basis of Number of People Living with HIV/AIDS
Exhibit XI: Murders


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