AbstractThe paper examines the political and economic effects for South Africa of living in a state of economic siege. It points out that most economies already exist in partial isolation, often self‐imposed. The most serious consequence of sanctions will be the granting to the government of a moral licence to react repressively, thus shutting off existing political and economic ‘safety valves’. The net result will be even more stringent political repression, and further resistance to change. The government will find it hard to retreat from this situation, and relax the repression. The result is a society without the flexibility to c