This paper was commissioned by the Nedlac Labour Caucus in September 1999. Acknowledgements are due to many colleagues in South African labour and social movements, and internationally, who assisted in fine-tuning the argumentation.
Any flaws are the author's responsibility alone.
In 1995, South Africa removed a decade-old financial rand exchange control mechanism. In 1998, Malaysia instituted even tougher controls on inflows and outflows of capital. South Africa has been subjected to two extremely destructive bouts of international financial volatility since 1995, while it is broadly recognised that Malaysia's capital-control experience was positive. Thus there are strong historical, contemporary-comparative and theoretical grounds for the immediate reinstallation of exchange controls in South Africa. In the wake of the lifting of the finrand in 1995, South Africa retains no capital export controls on non-residents imported funds and profit remittances.