The Immorality Of Divestment

Harvard University must not disassociate itself from the South Africa question but must remain involved. The proponents of divestiture would want us to walk away from the problem. In so doing they contribute little to help change the very unacceptable conditions in South Africa. Students should be totally unconvinced by this self-righteous stance. The South African problem is not in determinable and Harvard University can play an important role in influencing change.

All divestiture means is the swapping of one shareholder for another. Chances are high that the new shareholder will not be as concerned as the former Harvard shareholder. It does not lead to disinvestment from South Africa at all. It does increase the risk that Harvard University will no longer be involved with the South African question. Not having the focus of South African interests in the University's portfolio of stocks, future Harvard students may find the atrocities in Soviet Russia or the injustices in Central America more worthy of their time and consideration.

One must note that the divestiture movement is not directed against the South African Government is therefore able to categorize Harvard students as extremists and is able to solidify public opinion within South Africa around its policies. While fears are played upon resulting in further polarization of the different race groups and the momentum for progressive change within the country receives yet another set-back.

In the extremely unlikely event that diversiture leads to general disinvestment from the country, it is the Black people who will suffer most. A lower economic growth rate and increased unemployment will follow. This weakens the trade union movement which has been effective of late in forcing change. A rapid economic growth rate destroys aparthied. Those students and academics that advocate disinvestment help entrench aparthied. They support increased Black poverty leading supposedly to violent revolution and Black suffering within the country. This they do self righteously from the lofty citadels at Harvard University.

Could anything be more immoral?

It is also faulty reasoning to suggest that the Sullivan principles have not been beneficial to South African society. Its example encouraged Canadian, European and South African codes. Though not perfect, it has helped to liberalize the trade union movement and has contributed to improved labor conditions in the country. More U.S. companies must abide by the code and the American Chamber of Commerce in South Africa must be encourgaed to assist the process of change in South Africa How can Harvard help? Instead of the negative posture of direstiture, students and the Administration should settle their differences and focus on finding new alternatives to the South African problem.

The following suggestions seem to be partinent: The Harvard community has insufficient knowledge about South Africa. There is a real need to disseminate up-to-data information in the New England area. No institution on campus is fulfilling that function. To remedy this, a South African center should be established at Harvard.

This center should be funded jointly by outside donations and the Harvard Administration. Harvard University has benefited from conditions in South African through its protfolio of stocks. The menetary benefits can be computed by calculating the dividend return from the South African exposure and multiplying this amount by the time period such stocks have been held. The bulk of the money should be used to establish the center. The remaining amount should be used to expand the scholarship fund to enable more black South Africans to come to Harvard.

Funds collected through the Endowment for Divestiture movement should likewise be used for expanding the scholarship facilities for black South Africans.

Function of the South African center at Harvard should be:

(1)To provide a data base, ensuring the availability of current information on South African.

(2)To establish a fellowship program so that schlarly work can be produced at the center. Scholarly should concentrate not only on the academic but the practical problems of changing South Africa. Other insititutions on campus (e.g., the Harvard Negotiation Project) should be encouraged to participate.

(3)It should arrange an annual conference at Harvard (something similar to the Day of Dialogue Conference on S.A. being held here one the 4th December). All sectors of opinion in and outside of South Africa should participate at these conference's. Such a forum for exchange of ideas and solutions does not exist in South Africa.

(4)It should devote time and attention to improving the Sullivan principles. A separate Harvard code should be established to focus on improving all the other codes in South Africa. It should then be used as a model for Harvard University and the international community.

The propositions I have suggested will enable Harvard students, faculty and administration to take the lead on the South African problem. It will enhance its proud tradition of leadership in new fields and more importantly will make a valuable contribution to assisting the process of change in South Africa. Through such action, it will receive the acclamation of many in the world and the gratitude of millions of South Africans.

Can anything be more worthwhile or indeed, more moral?

Robert Conway is a fellow at the Center for International Affairs and a South African citizen.