Abstract
M.A.
Financial markets are rapidly integrating into a
single global market place, and developing
countries including South Africa, are
increasingly part of this process. The process
is being driven by both the push and the pull
factors in both developed and developing
countries. Nevertheless, the overwhelming
majority of the developing countries still need
to create the conditions to attract long-term
capital flows.
Although South Africa has been attracting capital
flows since the 1990s, the level is not
sustainable because it mainly attracts shortterm
capital. It has failed to attract long-term
capital on a sustainable basis because of
economic and political crises facing the country.
Thus, the South African government needs to build
the kind of macroeconomic, regulatory and
institutional environment that channels this
private capital into broad - based and
sustainable growth.