Government eubsidiee have been necessary to sustain projects like the SASOL oil-from-coal conversion plants and the Moeeel Bay fuel-from-gas project designed to meet only 20 per cent-25 per cent and 10 per cent of South Africa’s crude oil imports, respectively. South Africa is heavily dependent on foreign technology for both the exploration and manufacture of liquid fuels. It has been estimated that liquid fuels produced by SASCL would cost at least three times as much as oil bought on the international market. According to international experts, the Mossel Bay project will produce only about 25,000 barrels of fuel a day for the cost of R5.500 million, while a similar project overseas could be built to produce four times as much for only RlOO million. 50. The South African Government’s programme of structural reform also includes privstization of public enterprises and corporations. Tbe proceeds from privatization are supposed to be spent on retiring public debt and developing infrastructure and small businesses. Part of it is to go to pay for the Government’s ‘repressive reform’ policy. This aims to co-opt a small group of urban blacks in certain key townsnips through rownsbip-upgrading schemes with new houses, water and electricity, while at the same time increasing repression to eilence the majorjty. Some observers believe that ptivatization ie aimed at counteracting those sanctions which have been directed mainly against the Government and Government-oirned bodies, however. I... h/45/552 English Page 18 Still otherr see in it a pre-emptive effort to keep economic control in white hands in the event of a shift in political contxol to the bleck majority. With the perastatalo in the hendo of e white-controlled private euctor, the political &Id ecomnic leverage of any iocomiog government will be ripif icently reduced. 51. The variow reform propooelo are severely constrained by the aoettbaid 
**Analysis**
The text discusses the economic development of South Africa, specifically the government's policies and projects related to the production of liquid fuels, privatization, and structural reform. It highlights the challenges and controversies surrounding these initiatives, including the high cost of domestic fuel production, the reliance on foreign technology, and the potential impact on the economy and society.

**Category**
Economic development, Industry