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How did the manner in which homelands were granted "independence" contribute to the economic crisis in the 1980s in South Africa?

How did the manner in which homelands were granted "independence" contribute to the economic crisis in the 1980s in South Africa?

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How did the manner in which homelands were granted "independence" contribute to the economic crisis in the 1980s in South Africa? 
SOURCE 1B This source presents an extract from an article, An overview of the South African economy in the 1980s, that was published in the September 1994 South African Journal of Economic History. The declining growth rate, which had been such a notable feature of the South African economy in the 1970s, continued in the 1980s until, by the end of the decade, slow growth had been replaced by no growth. The declining price of gold played its part, as did the continued ravages of inflation, but they were not the main causes. The credit for this achievement must go to the government. It was the P.W. Botha regime that brought down the economy. This demolition was brought about by the growing costs of the "total onslaught" policy and the extraordinary militarisation that it entailed. White conscription rose to two years, with up to three months on active duty every year for almost 20 years. Vast amounts of money were poured into ammunitions manufacturing, as the government and its generals fantasised about building aeroplanes, helicopters, submarines, warships, tanks, over and above the armoured cars and special guns developed for the ongoing bush war. An atomic device was produced at great expense, with no thought as to its use - which must have been nil. Not even the P.W. Botha government can have thought they could challenge the might of the Soviet Union with their inadequate nuclear capability or even possibly use it on the home front against freedom fighters or terrorists. It was made worse, too, by the manner in which homelands were granted "independence" without any effective control over their expenditures. As a result, the South African government found itself having to pour billions of rands into subsidising corrupt and inefficient homeland governments without proper accountability. The depreciation of the rand was inevitable.
Transcribed Image Text:SOURCE 1B This source presents an extract from an article, An overview of the South African economy in the 1980s, that was published in the September 1994 South African Journal of Economic History. The declining growth rate, which had been such a notable feature of the South African economy in the 1970s, continued in the 1980s until, by the end of the decade, slow growth had been replaced by no growth. The declining price of gold played its part, as did the continued ravages of inflation, but they were not the main causes. The credit for this achievement must go to the government. It was the P.W. Botha regime that brought down the economy. This demolition was brought about by the growing costs of the "total onslaught" policy and the extraordinary militarisation that it entailed. White conscription rose to two years, with up to three months on active duty every year for almost 20 years. Vast amounts of money were poured into ammunitions manufacturing, as the government and its generals fantasised about building aeroplanes, helicopters, submarines, warships, tanks, over and above the armoured cars and special guns developed for the ongoing bush war. An atomic device was produced at great expense, with no thought as to its use - which must have been nil. Not even the P.W. Botha government can have thought they could challenge the might of the Soviet Union with their inadequate nuclear capability or even possibly use it on the home front against freedom fighters or terrorists. It was made worse, too, by the manner in which homelands were granted "independence" without any effective control over their expenditures. As a result, the South African government found itself having to pour billions of rands into subsidising corrupt and inefficient homeland governments without proper accountability. The depreciation of the rand was inevitable.
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In the 1980s, the South African economy faced a financial crisis for various reasons. The country has been experiencing slow growth for several years, and by 1989s, the growth had ended. Government policies were the main reason behind the economic decline, putting the country at inflation.

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