per head was still far below the 1988 level. The inflation rate hovered
around 10 percent overall (the cost of food rose at a far higher rate), for-
eign reserves had 'shrunk to an abysmal low, and personal taxes were al-
ready very high. South Africa did have excellent economic potential: valu-
able mineral resources, a well-developed infrastructure,
sound financial
institutions, and skills and experience in engineering, the legal and med-
ical professions, and business management. But apartheid had distorted
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