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Open Access Publications from the University of California

South Africa: A Case for Total Divestment


My belief is that it is in the best short-term as well as long-term economic interests of U.S. corporations to disengage from South Africa. South African corporations are no longer profitable in most cases and there is an immediate risk that product imports, capital investment or sales will be lost or adversely affected by continued military and police action, domestic or foreign embar­ goes or government expropriation. This is in addition to normal risks of currency fluctuation and unstable commodity prices. In the long-term, a new majority-ruled government may look else­ where for investments and trade, or will extract a very high price for foreign corporate involvement. At worst, corporate support of the white-minority will rule out any access in the future to South African strategic resources and play into the hands of Jj.S. cor­ porate enemies around the world. A short-term loss may also be more than offset by substantial long-term gains if U.S. corpora­ tions disengage.

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