ABSTRACT
The end of apartheid could be a mixed blessing for South Africa's neighbours, if the new government yields to domestic pressures to end migrant labour and to use its dominance of the regional political economy for short‐term gain. This paper assesses the elements of continuity and change likely to characterize South African regional policy, and argues that the greatest challenge will be to reconcile domestic demands for jobs, welfare spending, and rapid economic expansion, with an interdependent regional economy. Finally, relevant policy implications are considered.