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Divestment, Investment Sanctions, and Disinvestment: An Evaluation of Anti-Apartheid Policy Instruments

William H. Kaempfer, James A. Lehman and Anton D. Lowenberg
International Organization
Vol. 41, No. 3 (Summer, 1987), pp. 457-473
Published by: The MIT Press
Stable URL: http://www.jstor.org/stable/2706752
Page Count: 17
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Divestment, Investment Sanctions, and Disinvestment: An Evaluation of Anti-Apartheid Policy Instruments
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Abstract

Pressure for divestment and mandatory disinvestment sanctions directed against South Africa are an instance of domestic interest groups in one country seeking policy change in another. The link from shareholder divestment to disinvestment by firms is tenuous, however (since South Africa-active firms do not seem to suffer as a consequence of divestment pressure), and legislated sanctions are likely to have unpredictable and sometimes perverse effects on the extent of apartheid practices.

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