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To
what
extent
did
the
Bantu
Homelands
Citizenship
Act
of
1970
cause
social
and
economic
change
that
influenced
the
fall
of
apartheid?
Daniel
Brown
002828-0029
Kenner
Collegiate
and
Vocational
Institute
Examination
Session:
May
2015
Subject
Area:
History
Word
Count:
3,576
Brown
2
Table
of
Contents
Abstract
Introduction
Background
Investigation
Short
Term
Social
Change
Long
Term
Social
Change
Short
Term
Economic
Change
Long
Term
Economic
Change
Conclusion
Works
Cited
Appendix
1
3
5
7
9
9
12
15
16
21
23
26
Brown
3
Abstract:
The
Bantu
Homelands
Citizenship
Act
was
one
of
the
most
important
pieces
of
apartheid
legislation,
as
it
was
a
large
step
towards
the
National
Party
government
establishing
grand
apartheid.
This
essay
attempts
to
investigate
the
research
question;
To
what
extent
did
the
Bantu
Homelands
Citizenship
Act
of
1970
cause
social
and
economic
change
that
influenced
the
fall
of
apartheid?
In
order
to
answer
this
question,
both
primary
and
secondary
sources
that
focused
on
social
and
economic
change
were
used.
It
was
important
that
sources
from
before
and
directly
after
the
Bantu
Homelands
Citizenship
Act
were
used
so
that
change
could
be
seen.
Sources
from
near
the
time
of
the
fall
of
apartheid
were
also
used
so
that
it
could
be
seen
how
the
changes
from
the
legislation
influenced
the
fall.
Economic
changes
were
analyzed
using
the
framework
of
agency
theory.
The
conclusion
that
was
reached
is
that
the
Bantu
Homelands
Citizenship
Act
did
in
fact
create
social
and
economic
change,
both
in
the
short
and
long
term,
which
influenced
the
fall
of
apartheid.
The
short-term
social
change
that
occurred
was
that
South
Africa
faced
condemnation
from
the
sporting
world,
the
black
resistance
was
fragmented,
and
African
people
were
forced
to
question
their
identities.
This
led
to
Africans
being
more
willing
to
support
the
Black
Consciousness
Movement.
The
most
significant
long-term
social
change
that
occurred
was
the
emergence
of
the
Black
Consciousness
Movement.
The
short-term
economic
change
that
occurred
was
the
increase
in
the
number
of
migrant
laborers,
which
exposed
the
weakness
of
the
Brown
4
apartheid
economy.
The
long-term
economic
change
that
occurred
was
increased
government
spending
into
the
homelands,
and
international
pressure
on
the
apartheid
regime
via
economic
sanctions.
Word
Count:
278
Brown
5
Introduction:
Apartheid
in
South
Africa
is
an
incredibly
important
part
of
world
history.
It
is
the
most
significant
example
of
legislated
segregation
ever
and
acts
as
a
testament
to
the
power
of
international
sanctions
in
changing
the
policies
of
nations
acting
in
immoral
ways,
while
inspiring
social
change
within
these
countries.
Specifically,
studying
the
Bantu
Homelands
Citizenship
Act
of
1970
is
crucial
as
this
was
a
large
step
towards
the
National
Party
achieving
grand
apartheid
as
Africans
were
stripped
of
South
African
citizenship
and
granted
citizenship
of
their
homeland,
which
were
self-governing
but
initially
not
internationally
recognized.
1
This
meant
that
all
Africans
who
wanted
to
work
in
South
Africa
needed
to
apply
to
act
as
guest
workers
typically
in
low-skill
labor
jobs
or
as
slaves.
The
response
to
this
act
led
to
distinct
short
and
long-term
social
and
economic
changes
in
South
Africa,
which
in
turn
led
to
the
fall
of
Apartheid
in
1994.
This
issues
raised
in
this
paper
still
have
contemporary
relevance,
as
the
effects
of
the
Bantu
Homeland
Citizenship
Act,
and
the
social
and
economic
changes
that
came
with
it,
are
still
felt
today,
even
in
a
democratic
South
Africa.
Many
of
the
economic
changes
that
are
touched
upon
in
this
paper
will
be
analyzed
using
the
framework
of
agency
theory,
otherwise
known
as
the
principal-agent
problem.
This
problem
arises
when
one
entity
(the
agent)
is
able
to
make
decisions
on
behalf
of
another
entity
(the
principal).
A
problem
arises
in
this
case
because
the
1
Bantu
Homelands
Citizenship
Act,
1970,
Minister
of
Bantu
Administration
and
Development
Brown
6
agent
may
be
compelled
to
make
decisions
that
benefit
their
own
best
interests
rather
than
those
of
the
principal.
2
This
framework
allows
for
an
effective
analysis
of
most
economic
concerns
in
this
setting.
2
Kathleen
Eisenhardt,
Agency
Theory:
An
Assesment
and
Review,
The
Academy
of
Management
Review
14,
no.
1
(1989),
57-74
Brown
7
Background
The
Bantu
Homeland
Citizenship
Act
of
1970
was
a
drastic
step
by
the
South
African
Government
towards
its
policy
of
separate
development.
The
eventual
goal
of
separate
development
was
to
create
ten
separate
self-governing
states
in
which
the
various
Black
ethnic
groups
could
develop
a
unique
national
identity.
This
would
ensure
that
there
was
always
a
White
demographic
majority
in
South
Africa.
This
specific
act
made
all
Black
South
Africans
citizens
of
their
homeland.
The
conditions
that
placed
a
certain
person
in
a
designate
homeland
were
vague.
Every
African
born
in
a
particular
area,
domiciled
there,
every
person
using
the
language
of
that
are
or
an
associated
linguistic
group,
every
person
related
to
a
member
of
such
a
group,
anyone
who
has
identified
himself
with
that
population,
or
anyone
associated
with
such
a
population
by
virtue
of
his
cultural
or
racial
background
would
and
must
be
entitled
to
the
appropriate
citizenship.3
By
becoming
a
citizen
of
their
respective
homelands,
these
African
people
were
losing
their
South
African
citizenship.
This
meant
that
they
were
considered
aliens
in
the
urban
areas
of
South
Africa
and
could
only
live
and
work
here
with
special
permission.
The
pass
laws
enforce
this
system.
All
Africans
had
to
carry
a
passbook
that
contained
all
of
their
social
information
as
well
as
any
special
permission
they
had
received
to
be
present
in
or
working
in
the
urban
areas
from
the
South
African
government.4
3
Jeffrey
Butler,
Robert
I.
Rotberg
and
John
Adams,
The
Black
Homelands
of
South
Africa
(Los
Angeles:
University
of
California
Press,
1977),
36-37
4
Ernie
Regehr,
Perceptions
of
Apartheid
(Scottdale:
Herald
Press,
1979),
42-43
Brown
8
As
citizens
of
the
homelands,
Africans
who
wanted
to
work
in
the
urban
areas
of
South
Africa
were
considered
migrant
laborers
This
way
the
Nationalist
government
could
maintain
the
advantages
of
the
black
work
force,
while
making
the
Bantustan
governments
responsible
for
these
workers
welfare.
In
order
to
effectively
establish
this
system,
the
nationalist
government
instituted
the
forced
removals
of
3.5
million
Africans
from
1960
to
1983,
with
many
of
these
occurring
after
1970.
5
The
distribution
of
land
to
the
homelands
clearly
favored
White
economic
and
demographic
domination.
87%
of
the
land
in
South
Africa
was
allotted
to
20%
of
the
population
(White
people)
and
the
remaining
13%
was
designated
as
the
homelands
for
the
remaining
80%
of
the
population.
Furthermore,
the
most
industrially
and
agriculturally
prosperous
areas
within
the
homelands
were
designated
as
white-controlled
areas,
and
not
one
of
the
homelands
had
access
to
a
major
port.
(See
Appendix
1)
The
South
African
government
also
controlled
all
mineral
rights
in
the
Bantustans.6
This
made
economic
success
in
the
developing
world
almost
impossible
for
the
homelands.
5
African
Studies
Centre
at
Michigan
State
University,
Forced
Removals,
http://overcomingapartheid.msu.edu
(accessed
3
Jan.
2015)
6
Steve
Biko,
Lets
Talk
About
Bantustans,
in
I
Write
What
I
Like,
(London:
Heinemann,
1978),
82-83
Brown
9
Investigation
Short
Term
Social
Change
The first changes as a result of the Bantu Citizenship Act of 1970 that are
being
analyzed
are
short-term
social
changes.
These
changes
are
classified
as
short-
term,
because
their
greatest
effect
on
the
country,
and
the
fall
of
apartheid,
occurred
shortly
after
the
Bantu
Homelands
Citizenship
Act.
South
Africa
faced
from
the
sporting
world.
After
the
Bantu
Homelands
Citizenship
Act
of
1970,
the
sporting
world,
with
recommendation
from
the
United
Nations,
began
to
take
a
stand
against
apartheid.
The
United
Nations
General
Assembly
Brown
10
addressing
the
act
were
passed,
so
this
considered
a
direct
response.
South
Africa
was
banned
from
the
1970
Davis
Cup,
expelled
from
the
IOC,
and
was
expelled
from
the
International
Association
of
Athletics
Foundation.
8
As
it
is
in
many
cultures,
sport
incredibly
important
to
the
South
African
people.
By
taking
away
sports,
the
majority
of
the
Afrikaner
population
was
affected
socially,
as
they
lost
a
central
point
of
their
national
pride.
This
was
also
an
effective
political
statement
against
the
National
Party
by
the
member
countries
of
the
United
Nations,
as
they
were
willing
to
boycott
major
sporting
events
such
as
the
Olympics,
forfeiting
the
economic
and
social
benefits
of
such
an
event,
in
order
to
condemn
apartheid.
Both
as
a
social
and
political
tool,
the
international
sporting
world
created
immediate
change
using
the
sporting
boycott.
result
of
the
Bantu
Homelands
Citizenship
Act
that
affected
the
lives
of
Africans.
First
of
all,
many
Africans
were
left
to
question
their
identity
and
culture
when
they
were
assigned
as
citizens
of
a
homeland
even
if
they
had
never
lived
outside
of
white
South
Africa
and
had
no
direct
personal
links
to
that
homeland.
Not
only
did
this
law
force
Africans
to
question
their
identities,
it
added
to
an
already
substantial
collective
inferiority
complex
that
had
grown
through
years
of
deliberate
oppression.
9
Despite
the
fact
that
this
change
made
the
lives
of
African
people
much
8
Douglas
Booth,
The
Race
Game:
Sport
and
Politics
in
South
Africa,
(New
York:
Frank
Cass
Publishers,
1998)
9
Steve
Biko
We
Blacks
in
I
Write
What
I
Like
(London:
Heinemann,
1978),
27-33.
Brown
11
worse,
it
increased
the
frustration
that
black
people
had
with
the
National
Party
regime.
Citizenship
Act
is
the
fragmentation
of
the
African
resistance
to
apartheid.
After
this
act
was
passed,
leadership
of
the
African
people
became
the
responsibility
of
the
leadership
groups
of
the
ten
homelands,
not
one
common
party
or
movement.
10
Although
these
governments
were
responsible
for
the
Africans
who
were
citizens
of
the
homelands
before
the
Bantu
Homelands
Citizenship
Act,
after
the
act
the
governments
in
the
Bantustans
became
responsible
for
any
African
who
was
declared
a
citizen
of
their
homeland.
This
greatly
increased
the
fragmentation
of
the
anti-apartheid
struggle.
A
perfect
example
of
this
is
when
South
Africa
was
celebrating
the
10th
anniversary
of
the
republic
in
1971.
The
chief
of
Zululand
decided
that
they
would
be
celebrating,
whereas
the
Labor
Party
argued
that
it
should
not
be
celebrated,
and
in
other
homelands,
pamphlets
were
distributed
speaking
against
celebration.
11
When
you
combine
this
with
the
banning
of
many
black
or
inter-racial
political
parties,
such
as
the
African
National
Congress,
as
a
result
of
the
Unlawful
Organizations
Act
of
1960,
there
was
hardly
any
consistent
political
representation
for
blacks
in
South
Africa.
12
10
Ernie
Regehr,
Perceptions
of
Apartheid,
(Scottdale:
Herald
Press,
1979),
35-36.
11
Steve
Biko
Fragmentation
of
Black
Resistance
in
I
Write
What
I
Like
(London:
Heinemann,
1978),
33-40.
12
Unlawful
Organizations
Act,
1960,
Minister
of
Justice
Brown
12
consolidated
the
National
Partys
power.
But,
many
Black
politicians
who
tried
to
fight
the
system
from
the
inside
came
to
realize
what
had
occurred,
and
how
powerless
they
were
becoming,
and
this
left
them
much
more
prepared
to
participate
in
the
Black
Consciousness
Movement,
which
united
blacks
and
helped
bring
the
fall
of
apartheid.
Long
Term
Social
Change
The
second
type
of
social
change
being
investigated
is
the
long-term
social
change
that
occurred
as
a
result
of
the
Bantu
Homelands
Citizenship
Act.
These
changes
are
classified
as
long-term,
because
their
greatest
effect
on
the
fall
on
apartheid
occurred
years
after
the
Bantu
Homelands
Citizenship
Act.
The
long-term
social
change
being
analyzed
is
the
emergence
of
the
black
consciousness
movement.
This
was
a
grassroots
anti-apartheid
movement
led
by
Steve
Biko
that
emerged
in
the
mid
1960s
following
the
Sharpeville
massacre,
which
was
a
protest
in
which
5000-10000
people
showed
up
at
a
police
station
in
Sharpeville
and
protested
by
not
carrying
their
passbooks.
After
the
crowd
grew
larger
and
could
not
be
subdued,
police
opened
fire
killing
69
people
and
injuring
180.13
Although
this
event
sparked
the
Black
Consciousness
Movement,
it
truly
emerged
and
gained
momentum
following
the
Bantu
Citizenship
Act.
13
Klaus
D.
Vague,
The
Plot
Against
South
Africa,
(Pretoria:
Varama,
1989)
Brown
13
This
movement
is
based
on
the
idea
that
the
black
people
needed
to
rally
together
to
rid
themselves
of
the
shackles
that
bind
them
to
perpetual
servitude.
14
They
also
wanted
to
create
a
sense
black
pride,
in
order
to
make
the
black
people
not
feel
like
appendages
of
white
society.
Another
goal
was
to
unite
all
of
the
colored
people
as
they
were
all
being
oppressed
on
various
levels
by
the
apartheid
system.
Black
consciousness
stated
that
integration
did
not
mean
black
people
assimilating
into
a
culture
and
set
of
expectations
established
by
white
people,
but
it
means
that
black
people
would
contribute
a
proportionate
amount
to
their
joint
culture.
Ultimately,
black
consciousness
rejected
apartheid
and
all
systems
and
legislation
that
made
the
black
man
a
foreigner
in
his
country
of
birth
and
racial
majority.
15
The
Black
Consciousness
Movement
continued
to
grow
until
1976
when
the
Soweto
riot
occurred.
This
protest
was
a
student-led
response
to
the
National
Party
Policy
that
black
students
were
to
learn
Afrikaner
as
opposed
to
their
native
language
or
English.
The
protests
eventually
turned
violent
with
176
people
being
killed
by
security
forces.
16
Following
the
incident
in
Soweto,
the
National
Party
felt
more
at
risk
than
they
had
during
their
reign
and
began
to
crack
down
on
associations
and
individuals
associated
with
the
Black
Consciousness
Movement.
The
most
significant
of
these
arrests
was
that
of
SASO
leader
Steve
Biko
who
died
in
prison
shortly
after
his
incarceration,
after
being
assaulted
by
white
police
officers
14
Steve
Biko,
The
Definition
of
Black
Consciousness
in
I
Write
What
I
Like
(London:
Heinemann,
1978),48-54
15
South
African
Student
Association,
SASO
Policy
Manifesto,
In
Black
Student
Politics,
Higher
Education
and
Apartheid:
From
SASO
to
SANSCO
1968-1990,
(Pretoria:
Human
Science
Research
Council,
1999)
376-378
16
Ernie
Regehr,
Perceptions
of
Apartheid,
(Scottdale:
Herald
Press,
1979),
42-43.
Brown
14
and
forced
to
live
in
terrible
conditions,
on
September
12th
1977.
Shortly
after
Bikos
death
on
October
19th
1977
SASO
and
its
associated
Black
Consciousness
organizations
were
deemed
illegal.
These
organizations
did
not
continue
in
a
significant
way
underground.
17
This
movement
had
varying
levels
of
success
at
reaching
its
objectives.
The
leaders
of
the
black
consciousness
movement
themselves
never
brought
down
the
apartheid
regime.
Although
the
Black
Community
Programs
that
were
run
by
the
leaders
of
the
Black
Consciousness
Movement
were
fairly
successful
at
networking
black
community
leaders,
building
communities,
and
uplifting
the
black
spirit,
they
were
fairly
limited
in
scale
to
due
to
the
resources
available
to
them
as
a
result
of
the
National
Party
regime.
18
Although
this
movement
did
not
directly
influence
the
fall
of
apartheid,
its
legacy
is
that
it
helped
create
social
change,
and
inspire
young
black
activists,
who
grew
to
be
the
leaders
that
helped
bring
the
fall
of
apartheid
such
as
Desmond
Tutu.
Following
the
banning
of
SASO,
the
ideas
of
the
Black
Consciousness
Movement,
the
new
fearlessness
instilled
in
the
everyday
black
citizen,
and
the
liberation
of
the
black
people
carried
on.
Well
some
members
of
SASO
formed
new
small
organizations,
many
members
joined
larger
groups
such
as
the
African
National
Congress,
which
became
the
leader
in
the
struggle
against
Apartheid.
The
Black
17
(South
African
History
Online,
South
African
Student
Organization
(SASO)
last
modified:
June
2000,
http://www.sahistory.org.za
18
Ernie
Regehr,
Perceptions
of
Apartheid,
(Scottdale:
Herald
Press,
1979),
43
Brown
15
Consciousness
Movement
brought
strength
to
Black
politics
in
general.
As
the
government
arrested
leaders
of
various
organizations,
others
were
able
to
carry
on
the
struggle
against
apartheid,
as
they
all
possessed
this
series
of
ideals
that
superseded
any
specific
organizations
agenda.
19
Short
Term
Economic
Change
economic
changes
that
occurred
in
South
Africa.
The
first
changes
that
will
be
analyzed
are
the
short-term
changes.
These
changes
are
classified
as
short-term,
because
their
greatest
effect
on
the
country,
and
the
fall
of
apartheid,
occurred
shortly
after
the
Bantu
Homelands
Citizenship
Act.
migrant
laborers.
But,
this
increase
in
migrant
labor
actually
allowed
the
weaknesses
of
the
apartheid
economy
to
be
observed.
It
became
clear,
that
a
settled
labor
force
and
a
free
job
market
with
an
eroded
color
bar
would
be
much
more
efficient
that
the
migrant
labor
system.
20
Due to this observation, the South African government was forced to make
drastic
changes
in
the
short-term
in
order
to
try
to
preserve
both
the
economy
and
apartheid.
Between
1970
and
1975,
the
South
African
government
had
removed
job
19
Nigel
Gibson,
Black
Consciousness
1977-1987;
The
Dialects
of
Liberation
in
South
Africa
(Durban:
Centre
For
Civil
Sociery,
2004)
20
Stephen
R.
Lewis,
The
Economics
of
Apartheid,
(New
York:
Council
on
Foreign
Relations
Press,
1990)
130
Brown
16
reservation
for
whites,
opened
apprentice
training
to
Africans,
extended
the
right
of
freedom
of
association
to
the
African
workforce,
and
granted
legal
recognition
to
African
trade
unions.
21
This
was
incredibly
significant
in
terms
of
the
fall
of
apartheid,
as
it
demonstrated
that
Africans
had
to
be
an
integral
part
of
the
economy
in
order
for
it
to
expand.
Socially,
as
the
workforce
became
more
integrated,
Africans
were
able
to
gain
a
greater
respect
from
their
white
colleagues,
which
in
the
long-term
made
the
white
everyman
less
resistant
to
change
away
from
the
apartheid
structure.
The
first
long-term
economic
changes
that
will
be
analyzed
is
the
increased
Brown
17
legislation
fell
under
the
umbrella
of
grand
apartheid.
As
the
idea
of
grand
apartheid
became
a
reality,
it
became
clear
that
it
was
not
an
economically
sustainable
system.
It
was
difficult
to
build
a
strong
economy
that
was
capable
of
trading
with
and
investing
in
first
world
European
countries,
when
there
were
incredibly
limited
resources,
training,
and
education
for
approximately
80
percent
of
the
population.
As
of
1970,
the
homelands
only
contributed
to
2.4%
of
the
South
African
GDP
while
housing
32.7%
of
the
population
as
permanent
residents.22
In
fact
it
could
be
argued
that
South
Africa
was
a
microcosm
of
the
first
and
third
worlds.
23
In
an
attempt
to
remain
in
power
and
increase
the
economic
sustainability
of
the
apartheid
system,
the
government
began
to
invest
heavily
in
the
homelands.
Between
1970
and
1985
government
expenditure
as
a
percentage
of
the
homelands
contribution
to
the
South
African
GDP
increased
from
30.8
percent
to
88.7
percent.24
It
is
also
apparent
that
along
with
investing
in
education
and
training,
many
industrial
and
government
were
created
in
or
moved
to
the
homelands,
as
agriculture
as
a
percentage
of
the
homelands
GDP
dropped
from
25.1
percent
to
10.7
percent
between
1970
and
1985.
25
This
helped
to
contribute
to
the
end
of
apartheid,
because
the
increase
in
investment
in
the
homelands
placed
a
strain
on
22
Stephen
R.
Lewis,
The
Economics
of
Apartheid,
(New
York:
Council
on
Foreign
Relations
Press,
1990),
43
23
Colin
McCarthy,
Apartheid
Ideology
and
Economic
Development
Policy
in
The
Political
Economy
of
South
Africa,
(Cape
Town:
Oxford
Univesity
Press,
1990),
43-55
24
Stephen
R.
Lewis,
The
Economics
of
Apartheid,
(New
York:
Council
on
Foreign
Relations
Press,
1990),
45
25
Stephen
R.
Lewis,
The
Economics
of
Apartheid,
(New
York:
Council
on
Foreign
Relations
Press,
1990),
45
Brown
18
the
National
Party
government,
and
empowered
Africans
as
the
ratio
of
white
wages
to
black
wages
decreased
by
40
percent
between
1970
and
1985.
26
Although
on
the
surface
this
appears
to
be
a
case
in
which
the
agent
is
acting
in
a
way
which
directly
benefits
the
principal,
it
is
clear
when
analyzing
the
political
situation
in
South
Africa
that
the
government
(the
agent)
had
no
choice
but
to
act
in
a
way
that
benefited
the
African
population
(the
principal).
Another
long-term
economic
effect
of
the
Bantu
Homelands
Citizenship
Act
was
the
international
economic
pressure
that
was
placed
on
the
apartheid
regime.
Economic
sanctions
did
not
make
a
large
impact
on
the
South
African
economy
until
1986
when
the
United
States,
Japan
and
the
European
Commission
all
imposed
sanctions.
27
But,
this
is
still
considered
a
long-term
change
that
occurred
as
a
result
of
the
Bantu
Homelands
Citizenship
Act
because
as
of
1970,
the
United
Nations
urged
all
member
states,
and
private
companies
within
those
states,
to
take
economic
and
political
action
against
South
Africa.
28
After
the
amount
of
disinvestment
increased
greatly
in
1984,
South
Africa
has
suffered
from
a
copious
amount
of
capital
flight.
Between
1985
and
1988
23.9
26
Stephen
R.
Lewis,
The
Economics
of
Apartheid,
(New
York:
Council
on
Foreign
Relations
Press,
1990),
38
27
Phillip
I.
Levy,
Sanctions
on
South
Africa:
What
Did
They
Do?
(New
Haven:
Yale
University,
1999)
28
The
United
Nations,
General
Assembly
Resolution:
The
Policies
of
Apartheid
of
the
Government
of
South
Africa
in
The
United
Nations
and
Apartheid
1948-1994
(New
York:
United
Nations
Publications,
1994),
313-314
Brown
19
billion
rand
(South
African
currency)
in
capital
flowed
out
of
South
Africa.
This
triggered
a
dangerously
high
inflation
rate
of
12
to
15
percent
per
year.
29
By
comparison,
the
United
States
inflation
rate
on
the
dollar
at
this
time
ranged
from
2
to
4
percent.
30
In
1990,
these
clear
indications
of
the
economic
instability
of
apartheid,
combined
with
the
intense
international
pressures,
forced
newly
elected
president
FEW.
De
Klerk,
to
begin
to
negotiate
the
end
of
apartheid
in
South
Africa.
31
International
sanctions
present
an
interesting
case
of
the
principal-agent
problem.
As
U.S.
companies
disinvested
from
South
Africa,
they
were
taking
a
large
risk,
as
many
financial
ventures
in
South
Africa
were
quite
successful.
By
extension,
these
companies
that
invested
in
them
at
risk.
In
this
case
the
agent
acted
in
a
way
that
put
the
principal
at
risk
based
on
what
the
agent
felt
were
ethical
obligations.
It
would
be
predicted
that
disinvesting,
and
therefore
losing
opportunities,
would
hurt
stakeholder
wealth.
But,
according
to
Posnikoff,
shareholder
wealth
increased
following
announcements
of
withdrawals
from
South
Africa,
as
the
market
responded
positively
to
this
action
due
to
the
vast
amount
social
pressure
to
disinvest
along
with
the
fear
of
instability
in
the
South
African
market.
32
Although
it
helped
bring
the
fall
of
apartheid,
and
ultimately
increased
stakeholder
wealth,
29
Richard
Knight,
Sanctions,
Disinvestment,
and
U.S.
Corporations
in
South
Africa,
(Trenton:
Africa
World
Press,
1990)
67-91
30
(United
States
Bureau
of
Labour
Statistics
n.d.)
31
F.W.
de
Klerk,
F.W.
de
Klerks
Speech
at
the
Opening
of
Parliament
2
February
1990,
Nelson
Mandela
Center
of
Memory,
http://www.nelsonmandela.org,
Accessed
February
20th
2015.
32
Judith
F.
Posnikoff,
Disinvestment
From
South
Africa:
They
Did
Well
By
Doing
Good,
Contemporary
Economic
Policy
15,
no.
1
(1997),
76-86
Brown
20
based
on
agency
theory,
disinvestment
from
South
Africa
was
not
necessarily
a
responsible
decision
made
by
the
agent
as
it
put
the
principal
at
risk.
Brown
21
Conclusion:
This
investigation
has
sought
to
answer
the
question
To
what
extent
did
the
Bantu
Homelands
Citizenship
Act
of
1970
cause
social
and
economic
change
that
influenced
the
fall
of
apartheid?
When
looking
at
the
implications
of
this
legislation
in
isolation,
it
appears
that
it
would
have
led
South
Africa
further
away
from
the
fall
of
apartheid.
But,
upon
analyzing
both
primary
and
secondary
sources
dealing
with
the
socio-economic
state
of
South
Africa,
it
is
clear
that
the
Bantu
Homelands
Citizenship
Act
played
a
critical
role
in
creating
social
and
economic
change
that
helped
lead
to
the
fall
of
apartheid.
Based
on
the
evidence
presented
in
this
investigation,
the
social
change
that
occurred
as
a
result
of
the
Bantu
Homelands
Citizenship
Act
played
a
greater
role
in
bringing
the
fall
of
apartheid
than
the
economic
change.
The
social
change
created
by
the
Bantu
Homelands
Citizenship
Act
and
its
effect
on
the
fall
of
apartheid
is
clear.
Specifically,
the
emergence
of
the
black
consciousness
movement
enabled
African
activists
of
all
political
affiliation
to
unite
around
an
ideology;
the
power
of
this
change
cannot
be
underestimated.
Although
the
economic
changes
that
came
as
a
result
of
the
Bantu
Homelands
Citizenship
Act
are
legitimate
and
clear,
there
is
less
certainty
that:
a) the
changes
that
occurred
were
exclusively
a
result
of
the
legislation.
and
b)
the
economic
changes
that
occurred
had
direct
link
to
the
fall
of
apartheid.
Brown
22
For
example,
Martin
B.
Meznars
paper
Effect
of
Announcements
of
Withdrawal
from
South
Africa
on
Stockholder
Wealth,
analyzes
the
economic
effects
of
American
companies
withdrawing
investment
from
South
Africa.
This
paper
presents
contradictory
findings
to
those
of
Posnikoff
on
the
subjects
of
the
impacts
of
disinvestment
from
South
Africa
on
American
stakeholders
and
on
the
fall
of
apartheid.
33
Both
are
very
credible
papers
from
prominent
economists,
but
during
the
investigation
it
became
that
economic
change
was
much
more
complex
to
analyze,
as
there
were
many
more
outside
influences
that
needed
to
be
considered,
such
as
the
economic
situation
for
countries
trading
with
South
Africa.
There
was
an
abundance
of
valuable
primary
and
secondary
sources
that
make
it
simple
to
conclude
that
the
Bantu
Homelands
Citizenship
Act
created
economic
and
social
change
that
helped
lead
to
the
fall
of
apartheid.
One
limitation
of
many
of
the
book
sources
is
that
they
were
written
after
this
change
took
place,
but
before
the
fall
of
apartheid,
so
they
commented
on
the
state
of
the
country
after
the
Bantu
Homelands
Citizenship
Act,
but
not
on
the
fall
of
apartheid.
This
did
not
significantly
hinder
the
investigation
in
anyway.
The
contradictory
findings
in
some
economic
studies
made
finding
conclusive
evidence
in
that
area
difficult.
But
nevertheless,
it
is
clear
that
significant
economic
change
occurred
as
a
result
of
the
Bantu
Homelands
Citizenship
Act.
33
Martin
B.
Mezner,
Effect
of
Announcements
of
Withdrawl
from
South
Africa
on
Stakeholder
Wealth
Academy
of
Management
Journal
37,
no.
6
(1994),
1633-1648
Brown
23
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1
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Appendix
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