Abstract
M.A. (Economics)
Any political objective is limited by economic factors and dependant on the efficient administration of the state. Political and military objectives are of prime importance where a country is on a war footing but even here, strategic planning and programming are dependant on economic factors. It can therefore be said that a country's chances of survival during war is primarily dependent on the flexibility and sophistication of its economic system. An attempt is made in this study to determine the adapta bility and flexibility of the economical system of S.A. and thereby determining the economic survival potential of S.A. if she were placed on a war footing. Apart from the fact that South Africa is already experiencing a war economy (functionally), there are several factors that can expand this war economy situation (a full scale insurgent struggle or a total conventional war) such as the East-West conflict, North-South conflict in Africa, the greater hold of the oil magnates on the world economy and the tendencies of political instability in the third and fourth world. This study consists of two parts, the first, laying the foundation for the discussion which is continued in the second. Part one evaluates the present economic potential of S.A. with respect to the four basic production factors (labour, capital, resources and entrepreneurship) and also determine to what extent the S.A. economy is dependant on international trade. An attempt is also made to determine the effectiveness of economic politics in S.A. and highlights the advantages of the free market mechanism over a "controlled" economy. Part two covers the survival potential of S.A., should she find herself on a war footing. The discussion in part one is used as a basis to determine the adaptability of the economic system as regard to efficient utilisation of production factors under a different set of economic objectives, which would serve both the war effort and also maintam n an acceptable level of prosperity. With respect to war economy a distinction is made among sanctions on war material imports, anti-insurgent warfare and total conventional warfare. It must be noted at the outset that it is impossible to determine accurately the survival potential of S.A. as it is, dependent on the intensity of the struggle. This study however does try to determine what is to be done to put S.A. in the best possible position to survive any onslaught. According to the study it would appear that sufficient capital, labour and raw material are available, but problems could occur as a result of the shortage of skilled labour. Foreign and domestic investments, agriculture and mining as well as the initiative of entrepreneurs could also be affected in a war economy. From a national security viewpoint, it is important that S.A. maintains a prosperous socio-economic system during peacetime, but, also to be prepared to support efficiently the war effort if needed and still to satisfy particular and collective needs as far as possible. This forms the basis of the study.