46. Circumventing trade sanctions necessarily entail enormous costs, chiefly by increasing the number of middle-men and setting up of front companies or other links abroad. The costs of maintaining the infrastructure needed for this conduit trade must be bome partially by the South African Government. Unconventional trade also entails paying a premivim for imports and selling exports at a discount. The Commonwealth report on sanctions points out that, while the oil embargo failed to cut off South Africa's supplies of oil, it nevertheless succeeded in imposing an 'apartheid tax' on each litre of fuel used by South Africans. The costs of sanctions have forced the régime to invest in accumulating 'strategic' stockpiles. From January-April 1986, for instance, R2.6 million went to pay for 'unclassified imports'. This is a further drain on the financial resources of the economy. 4. Structural adjustment 47. The South African Government has turned to structural adjustment as a longer-term measure to liberate domestic resources for debt repayment. That is, it has sought a growth path that would not make demands on the country's scarce capital resources, and on imports. Measures include deregulation of the formal sector (as part of a broader strategy of 'inward industrialization'), import substitution and privatization of public enterprises and corporations, including parts of public utilities. 48. A strong lobby among economists and politicians in South Africa has argued that sanctions will help South Africa become more self-sufficient through import-substitution and inward industrialization. Domestic markets are too small to sustain growth, however. Efforts by South Africa in the past decade to become self-sufficient have not decreased the country's dependence on imports. South Africa's industry demands high technology inputs that cannot be produced domestically, and a highly skilled labour force, which is limited by apartheid.
**Analysis**
The text primarily discusses the economic consequences of trade sanctions on South Africa, including the costs of circumventing sanctions, the effects on the country's economy, and the government's strategies to adapt to the situation. It also touches on the issue of self-sufficiency and the limitations of the country's industries. The focus is on the economic development and international trade aspects, rather than other categories.

**Category**
International trade, Economic development