This paper contributes to the current debate, providing evidence that between 1970 and 1988, some $55 billion of capital has been systematically syphoned out of the South African economy through manipulation of the trading system. The magnitude of capital flight, in the face of what is generally regarded as a highly interventionist National Party government, reflects not only the power of private capital, but it also questions the bona fides of sections of the business and financial communities who were simultaneously arguing against sanctions and disinvestment in the 1970s and1980s. This paper will show that the magnitude of flight provides an explanation as to how it is possible that domestic corporations can suddenly become subsidiaries of their own overseas branches as the recent example of De Beers has demonstrated.
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