A sudden inflow of funds from the rest of the world can lead to a decline of South African interest rates against the run of events in the South African economy or the objectives of the monetary authorities.
As one might expect, greater worker insecurities are also creating political pressures to reduce the fierce global competition that has emerged in the wake of our 1990s technology boom. Protectionist measures, I have no doubt, could temporarily reduce some worker anxieties by inhibiting these competitive forces. However, over the longer run such actions would slow innovation and impede the rise in living standards.