This Briefing Paper focuses on the economic factors which must be considered when judging the impact of increased sanctions on South Africa's neighbours. The paper claims that, in whatever way events unfold, South Africa's relationship with its neighbours will crucially affect their overall development prospects. South Africa is able to inflict economic damage and destruction on the independent countries of the region, and it has done so. Nevertheless, the paper argues that the imposition of international economic sanctions against South Africa will not necessarily push it into stepping up its destructive action or change its relationship with its neighbours.