text: blacks impoverished and uneducated, the manufacturing sector has not been able to attain economies of scale or accvunulate domestic technological expertise. 33. This dependence on primary exports renders the South African economy vulnerable to changes in the economies of its major trading partners and to fluctuations in world prices. Moreover, declining productivity is also affecting South Africa's primary industries. It is difficult to see how South Africa's gold mining industry can compete with countries that have increased their market share by using new mining methods and low-cost technology. 34. South Africa has a very high propensity to import during periods of growth resulting in persistent current account deficits. The country has been extremely dependent on imports of capital goods, intermediate goods such as oil, as well as other strategic items like arms and chemicals that it cannot produce for itself. Moreover, white consumers tend to demand high quality imports. Growth is increasingly consvuner-led, and an upswing in the economy is usually accompanied by an expansion of consumer credit and a rise in demand for imported goods. 35. Distortions in the apartheid economy are a part of the reason for this import dependence. There is a growing tendency to adopt capital-intensive modes of production because of the scarcity of skilled labour resulting from restrictions on education for non-whites, de facto prohibition of black workers in white jobs, and high wages for skilled jobs. Moreover, South Africa has failed to develop its own capital goods sector. Attempts to promote import-substitution have not decreased its dependence on imports; much of the local production in the electronics and automobile sectors, for instance, is limited to local assembly of imported components or to production under licence. A major obstacle to South Africa becoming a modem industrial 
analysis: The text primarily discusses the challenges faced by the South African economy, specifically the country's dependence on primary exports, lack of domestic technological expertise, and high propensity to import. The text also touches on the impact of apartheid on the economy, such as the scarcity of skilled labor and the failure to develop a capital goods sector. These issues are all closely related to economic development and industrial growth.