on average, of these 12 countries. ( brazil is first. ) south africa ranks eighth for growth and last for unemployment. since the most recent global financial crisis, south africa has once again had the second - highest inflation rate, after brazil, but its growth rank has slipped to ninth place. it remains last for unemployment. page 6 of 17 international monetary fund identifies 28 „ pure [UNK] inflation - targeting countries. 6 of these, 20 ( or 71 % ) are emerging markets. if we use a broader definition, more countries qualify. there are 64 countries with a published inflation target for 2017 ; 49 of these ( or 77 % ) are emerging markets. 7 furthermore, if anyone is having trouble hitting inflation targets, it is the advanced economies. most of the central banks in the major advanced economies are below their inflation targets and have been so for some time. by contrast, emerging markets are mostly on target or getting there. south african inflation, to take the most immediate example, fell back within the target range in april this year and is expected to stay there for the foreseeable future. the reason why emerging market central banks are doing better than their rich country peers is probably because we know more about lowering inflation than raising it – especially when interest rates are already at zero. my conclusion is therefore that inflation targeting is more of an emerging market practice than an advanced economy one – one that has been working better in emerging markets, too. should we be targeting something besides inflation? i know of no central banks that are employment targeters or growth targeters. there are good reasons for this. contemporary economic thinking and lots of experience indicates that monetary policies cannot do much about structural growth and employment problems. if you do not have enough skilled workers, the central bank cannot mint doctors and engineers. the thinking and experience also stresses that any trade - off between growth see sarwat j, march 2012, inflation targeting : holding the line, available at http : / / www. imf. org / external / pubs / ft / fandd / basics / target. htm. the data for 2017 inflation targets are drawn from http : / / www. centralbanknews. info / p / inflationtargets. html. page 7 of 17 and inflation, or unemployment and inflation, is short - term only. what you can do is stabilise inflation at the target and employment or growth at its sustainable rate. for this reason, even the central banks with multiple mandates tend to behave a

gross basis as and when instructions are received by the system. 5. the financial globalisation process the implementation of sound monetary policies and the establishment of a sound and well - managed banking sector, effective financial markets, and an efficient national payment, clearing and settlement system, were regarded as important preconditions for the extension of south africa ’ s participation in the process of financial globalisation. as a further important element of the process, south africa is also removing exchange controls on a gradual and structured basis. there are, at this stage, no more exchange controls on any current account transactions ; all controls were removed on non - residents who are now free to bring funds into south africa and to repatriate funds for any purpose ; restrictions on residents to make investments outside of the country have been eased for corporates, institutional investors and private individuals, who may make foreign investments within fairly generous prescribed limits. these limits are being raised gradually until they will become ineffective. the south african approach on financial globalisation is that it is in the interest of the country to have access to foreign funds, and that we must therefore apply domestic financial and other macroeconomic policies that will make the country attractive to the foreign investor. furthermore, policies in south africa must be flexible enough to adjust quickly and decisively to changes in foreign investor sentiment. when capital inflows subside, or switch into outflows, as a minimum : n n n n the exchange rate must be allowed to absorb part of the shock ; an outflow of capital must reduce liquidity in the banking sector ; interest rates must be allowed to rise ; and some inflationary pressures will develop that will require, almost immediately, more restrictive monetary and fiscal policies. these adjustments will obviously not be painless, but will provide a basis for re - establishing confidence in the shortest possible time.