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At the same time, inflation rates have been higher in the more closed 44 Carolyn Jenkins and Lynne Thomas group of economies, corresponding with larger government deficit ratios and higher money supply growth. Average savings rates are very similar in both groups, but the average investment ratio is considerably higher in the group that trades more.

14 contains summary information of macroeconomic policies pursued in SADC member states over the period 1990–5, comparing economies that have engaged in more external trade with those that have been comparatively closed to international trade. The relative importance of foreign trade is measured by the ratio of average two-way trade (exports plus imports) to GDP over the period 1990–5. Countries are judged to have a more open trade regime when this ratio exceeds 1. 14 continued Sources: Updated and amended from Jenkins and Thomas (1997).

These include: (i) a strengthening of private sector representative organisations in the region; (ii) reform of visa requirements and procedures; (iii) liberalisation of exchange control accompanied by regional linkages between capital markets and the further development of money markets; (iv) harmonisation of standards for safety and quality within the region; (v) an increase in resources for skill-based training; (vi) the establishment of productivity centres – or use of centres in neighbouring countries – with the objective of enhancing productivity; (vii) a review of business legislation aimed at modernising the regulatory environment; and (viii) an updating of land ownership and tenure legislation.

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