A Hobson’s choice for the emerging markets Smaller countries such as South Africa can do little to change the world financial system, but may still be able to isolate themselves from the volatility of the world environment. This will, however, require comprehensive restrictive exchange controls on both residents and non-residents in respect of all international capital transactions.
Given the ongoing shift in the world economy’s centre of gravity towards Asia, the direction of this change is not at all surprising. Many countries would be seeing the weight of their trade shifting in the same direction as ours.