Economic Policy: Exploring The Independence Of South Africa

Abstract

The extent to which globalisation and regionalisation result in a loss of policy independence is investigated mainly qualitatively, with special reference to South Africa. Regional economic integration and the international integration of domestic markets, are conscious decisions reflecting a judgment about the potential net benefits. In the context of globalisation market norms define a range of policy discretion, which is as wide or narrow as the trust in the government's track record, the quality of information and the cost of attaining it. The reality of globalisation and the demands of regionalisation present South Africa with a dilemma. Its regional economic ties should be forged in a manner that will not jeopardise globalisation benefits. If centrifugal forces of instability (threaten to) dominate, the de facto loss of policy autonomy in the context of globalisation holds less risk than the de jure loss of policy autonomy associated with rapid regional integration.