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Definition

<p style="text-align: justify;">A term used by economists to explain the fact that economic <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">booms</span> in South Africa are generally caused by a strong recovery in <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">commodity</span> <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">export</span>s and prices. This is because South Africa is primarily an exporter of <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">raw materials</span> - like <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">gold</span>, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">platinum</span>, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">coal</span>, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">chrome</span>, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">iron</span> and other minerals. When world-wide demand for these raw materials increases, our <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">mining</span> <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">companies</span> make bigger <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">profit</span>s and expand, employing more people - which, in turn, stimulates the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">retail</span> <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">sector</span> and so on.</p>