THENEWSOUTHAFRICA
gress. "We cannot rest," he told the United Nations, "while millions of
our people suffer the pain and indignity of poverty in all its forms. The
success of South Africa's democracy depends on our ability to change
the material conditions of life of our people so that they not only have the
vote, but bread and work as well."52
The response was considerable but far short of what South Africans
hoped for. Between 1995 and 1997, the principal sources of direct for-
eign investment in South Africa were the United States and, surprisingly,
Malaysia, followed by Germany, the United Kingdom, and Japan. 53 But
most government contributors offered grants to South Africa for specific
projects, and private investors remained cautious, deterred by South
Africa's culture of violence; its burst of strikes; its unionized, highly paid,
unskilled labor force; and lingering doubts about the government's long-
term commitment to capitalism. Investors typically bought shares in long-
established companies, reacquired control of subsidiaries from which they
had withdrawn in the era of sanctions, and arranged to market goods that
had been manufactured in their own countries; but they did not invest
much capital in new enterprises or create many new jobs. Moreover, some