text: hae been in decline for two decades, althougb this haa been bidden by heavy foreign borrowfngs and occasional gold price boo&o. Sanctiono have only exacerbated tbie dacline. 29. In the 1960s and 1970s. it becams increaeingly difficult for South Africa to meet its investment needs. local cavings declined witb falling growth ratea, increased unemployment and lower per capita incorpeo. An increasing tax burden an6 inflation have meant that white consumera could maintain their living standards only by reducing their savings. In the public sector aa well oavings have lagged far behind investment demands. In 1977, public sector investment accountad for some 30 per cent of gross domestic exp8nditure of which the public authorities could only finance 22.6 per cent from their owa current eurpluseo. Between 1956 and 1983, the &are of the public sector in total foreign liabilitiee hae grown rapidly, The growing dependence of the Goverament and public corporations on foreign loan8 ha8 greatly increaoed the vulnerability of the South African economy to international presoures. 30. South Africa’s large public sector reflects a policy of allocating capital based on etrategic importance to the survival of tbe e #yatemD)r rather than eocial. or sc444mic factore and tbie entails enormous waute. The armed services account for 20 per cent of the Gov4rrua8nt’o anaual budget and S per cent of CNO. Military and police spending was incraaoed ivy 22 per cent in 1988 and by 25 psr cent in 1989 to 814.9 billion. Altogether, public expenditurea account for naarly 40 per cent of Gross Doza8stic Product, with the military, police and related ectivitiee taking the largeat share and the publLc sector ezplops about a third of the country’e workforce. 31. lJom4H.ic savings 8re not only declini4g. but have not been translated into doneat~c f%4d investmeat. On the contrary, oinco 1960, the &are of 
analysis: The text discusses the economic decline of South Africa, highlighting the country's increasing debt, declining savings, and high public expenditure, particularly on the military. It also touches on the public sector's dependence on foreign loans and the lack of investment in the economy. These themes suggest that the text is primarily focused on economic issues.