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THE REPUBLIC OF SOUTH Africa, located at the southernmost tip of the African continent, is the most developed country in Africa. Among African countries, South Africa's annual per capita income of $11,100 ranks second only to that of Mauritius ($12,800), an oil-producing nation. Nevertheless, South Africa is considered a lower-middle-income nation. In 1867, Dutch settlers discovered diamonds in what is now South Africa, followed by the discovery of gold in 1886. In addition to diamonds and gold, South Africa's wealth of natural resources includes chromium, antimony, coal, iron ore, tin, uranium, copper, and natural gas. In the 21st century, South Africa has a diversified economy and great potential for growth, and the South African stock market is among the top 10 in the world.

For almost a century, South Africa's black majority was subjugated, first under colonialism and then under the system of apartheid. The system was abolished in the 1990s, and a new black-majority government was established. However, South Africa's problems were far from over. The following decade saw South Africa rise to the forefront with one of the highest HIV/AIDS prevalence rates in the world (21.5 percent). Resources were further sapped by a 50 percent poverty rate and 26.2 percent unemployment rate. Some 23.8 percent of the South Africans live on less than $2 a day, and 7.1 percent survive on less than $1 a day.

Despite the end of apartheid, South Africa has been identified as the most unequal country in the world. The poorest 20 percent of the population claim only 2 percent of the country's wealth, while the highest 20 percent share 46.9 percent of all resources. The per capita income of whites is nearly nine times that of blacks. The Gini Index of Human Inequality ranks South Africa at 59.3 percent.

South Africa's population of 44,344,136 experiences a life expectancy of 43.27 years and a median age of 23.98 years. Life expectancy has actually decreased since the 1980 rate of 54 years. Some 30.3 percent of the population are under the age of 14, and 5.2 percent have reached the age of 65. South Africans have a 44.9 percent chance of dying before the age of 40.

The 21.5 percent prevalence rate of HIV/AIDS has been devastating to South Africa. By 2003 estimates, 5.3 million people were living with this disease, and 370,000 had died from HIV/AIDS and its complications. Because most South Africans have access to safe water and proper sanitation, the country escapes the food- and waterborne diseases that are prevalent in Africa. South Africans also have greater access to medical care and to affordable essential drugs than do most Africans. However, an outbreak of cholera occurred in South Africa in 2003.

South Africans have a 44.9 percent chance of dying before the age of 40.

From 2003 to 2005, the infant mortality rate in South Africa rose from 53 deaths per 1,000 live births to 61.81 deaths per 1,000. The mortality rate of children under the age of 5 is 66 per 1,000. The reason that childhood mortality rates are high for such a highly developed country is that the poorest South Africans in isolated villages lack the access to healthcare that is available in urban areas. The infant mortality rate of blacks is four times higher than that of whites in South Africa. Some 12 percent of all South Africans under the age of 5 are malnourished and two percent are severely underweight. Some 25 percent of children under 5 suffer from moderate to severe stunting, and three percent suffers from moderate to severe wasting.

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