Financial inflows from developing countries more stable than developed countries
“South African FDI, along with flows from transnational corporations (TNCs) in other developing countries, such as China and India, had proved less volatile during the recent economic crisis than had been the case with flows from developed economy TNCs, which slumped markedly… [as such] emerging country investors like China and South Africa are expected to be more resilient than traditional ones, providing a potential buffer against further developed world economic stagnation and/or crises.”
Implications from Institute for the Future:
Understanding where this resilience comes from can be beneficial to developed and developing countries alike. This may be due to countries like China and India having been more stable themselves throughout the recent economic crisis than the US and Europe.
Sources:South Africa Node July 2010, pg. 2