Potential Gains from Capital Flight Repatriation for Sub-Saharan African Countries
Despite the recent increase in capital flows to Sub-Saharan Africa, the region remains largely marginalized in financial globalization and chronically dependent on official development aid. And with the potential decline in the level of official de...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820143339 http://hdl.handle.net/10986/4216 |
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okr-10986-4216 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCELERATOR ACCELERATOR EFFECT ADVANCED ECONOMIES ADVERSE EFFECTS AFFILIATED ORGANIZATIONS ASSET RECOVERY ASSETS BALANCE OF PAYMENTS BANK DEPOSITS BANK POLICY BANKING PRACTICES BANKING SYSTEM BENCHMARKS BOND BOND MARKETS BONDS BORROWING BUDGET CONSTRAINT CAPITAL ACCOUNT CAPITAL ACCOUNT TRANSACTIONS CAPITAL ACCUMULATION CAPITAL FLIGHT CAPITAL FLOWS CAPITAL FORMATION CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL MARKETS CAPITAL MOVEMENTS CAPITAL OUTFLOW CAPITAL OUTFLOWS CAPITAL STOCK CLAIMANTS COMMERCIAL BANKS COMPETITIVENESS COORDINATION FAILURES CORPORATE FINANCE CORRUPTION COUNTRY DEBT COUNTRY RISK CREDIBILITY CREDIT RATING CREDIT RATINGS CREDIT WORTHINESS CREDITOR CREDITORS CURRENCY APPRECIATION CURRENCY DEVALUATION CURRENT ACCOUNT CURRENT ACCOUNT DEFICITS DEBT DEBT BURDEN DEBT CRISIS DEBT OVERHANG DEBT REDUCTION DEBT RELIEF DEBT SERVICE DEBT STOCK DEBT-EQUITY DEBT-EQUITY SWAPS DEBTOR DEBTOR COUNTRIES DEBTS DEPOSITORS DEPOSITS DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT FINANCE DEVELOPMENT FINANCING DEVELOPMENT POLICY DIVERSIFICATION DOMESTIC CAPITAL DOMESTIC INVESTMENT DOMESTIC SAVING EARNINGS ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC RESEARCH ELASTICITY EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITIES EQUITY FLOWS EQUITY HOLDING EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXPENDITURE EXPENDITURES EXTERNAL BORROWING EXTERNAL CAPITAL EXTERNAL DEBT EXTERNAL FINANCING FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL FLOWS FINANCIAL GLOBALIZATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL DEFICITS FLIGHT OF CAPITAL FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FRAUD GDP GLOBAL CAPITAL GLOBAL DEVELOPMENT FINANCE GLOBAL FINANCE GOVERNMENT BORROWING GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GOVERNMENT REVENUE GROWTH RATE GROWTH RATES HOLDINGS HOLDINGS OF BANK HOUSEHOLDS HUMAN CAPITAL INCOME INCOME GROWTH INFLOWS OF CAPITAL INTEREST RATE INTEREST RATE DIFFERENTIALS INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL INVESTORS INVESTING INVESTMENT CLIMATE INVESTMENT FLOWS INVESTMENT FUNCTIONS INVESTMENT RATES LIBERALIZATION OF CAPITAL ACCOUNT LIQUID ASSETS LIQUIDITY LIVING STANDARDS LOAN LONG-TERM CAPITAL LOSS OF ASSETS LOW-INCOME COUNTRIES MACROECONOMIC ENVIRONMENT MACROECONOMIC INSTABILITY MACROECONOMIC STABILIZATION MACROECONOMIC UNCERTAINTY MARKET ECONOMIES MATURITY MATURITY TRANSFORMATION MONETARY FUND MONEY LAUNDERING NATIONAL OUTPUT NATURAL RESOURCES NET FOREIGN ASSETS ODIOUS DEBT OPTIMIZATION PER CAPITA INCOME PHYSICAL CAPITAL POLITICAL RISKS POOR CREDIT POOR CREDIT RATINGS PORTFOLIO PORTFOLIO CHOICE PORTFOLIO DIVERSIFICATION PORTFOLIO FLOWS PORTFOLIO INVESTMENTS POSITIVE EFFECTS PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE CAPITAL INFLOWS PRIVATE CREDITORS PRIVATE INVESTMENT PRIVATE SAVINGS PRODUCTION FUNCTION PRODUCTIVE ASSETS PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PUBLIC DEBTS PUBLIC INVESTMENT RATE OF RETURN REAL GDP REGRESSION ANALYSIS REGULATORY FRAMEWORK REMITTANCES RESERVE RESERVE BANK RESERVES RETURNS RISK PREMIUM SAVINGS SECURITIES SHORT-TERM DEBT SOURCE OF FUNDS STATEMENT STOCKS SUSTAINABLE GROWTH SWAPS TAX TAX REVENUE TAX REVENUES TAXATION TERRORISM THIRD WORLD DEBT TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY WEALTH |
| spellingShingle |
ACCELERATOR ACCELERATOR EFFECT ADVANCED ECONOMIES ADVERSE EFFECTS AFFILIATED ORGANIZATIONS ASSET RECOVERY ASSETS BALANCE OF PAYMENTS BANK DEPOSITS BANK POLICY BANKING PRACTICES BANKING SYSTEM BENCHMARKS BOND BOND MARKETS BONDS BORROWING BUDGET CONSTRAINT CAPITAL ACCOUNT CAPITAL ACCOUNT TRANSACTIONS CAPITAL ACCUMULATION CAPITAL FLIGHT CAPITAL FLOWS CAPITAL FORMATION CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL MARKETS CAPITAL MOVEMENTS CAPITAL OUTFLOW CAPITAL OUTFLOWS CAPITAL STOCK CLAIMANTS COMMERCIAL BANKS COMPETITIVENESS COORDINATION FAILURES CORPORATE FINANCE CORRUPTION COUNTRY DEBT COUNTRY RISK CREDIBILITY CREDIT RATING CREDIT RATINGS CREDIT WORTHINESS CREDITOR CREDITORS CURRENCY APPRECIATION CURRENCY DEVALUATION CURRENT ACCOUNT CURRENT ACCOUNT DEFICITS DEBT DEBT BURDEN DEBT CRISIS DEBT OVERHANG DEBT REDUCTION DEBT RELIEF DEBT SERVICE DEBT STOCK DEBT-EQUITY DEBT-EQUITY SWAPS DEBTOR DEBTOR COUNTRIES DEBTS DEPOSITORS DEPOSITS DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT FINANCE DEVELOPMENT FINANCING DEVELOPMENT POLICY DIVERSIFICATION DOMESTIC CAPITAL DOMESTIC INVESTMENT DOMESTIC SAVING EARNINGS ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC RESEARCH ELASTICITY EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITIES EQUITY FLOWS EQUITY HOLDING EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXPENDITURE EXPENDITURES EXTERNAL BORROWING EXTERNAL CAPITAL EXTERNAL DEBT EXTERNAL FINANCING FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL FLOWS FINANCIAL GLOBALIZATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL DEFICITS FLIGHT OF CAPITAL FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FRAUD GDP GLOBAL CAPITAL GLOBAL DEVELOPMENT FINANCE GLOBAL FINANCE GOVERNMENT BORROWING GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GOVERNMENT REVENUE GROWTH RATE GROWTH RATES HOLDINGS HOLDINGS OF BANK HOUSEHOLDS HUMAN CAPITAL INCOME INCOME GROWTH INFLOWS OF CAPITAL INTEREST RATE INTEREST RATE DIFFERENTIALS INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL INVESTORS INVESTING INVESTMENT CLIMATE INVESTMENT FLOWS INVESTMENT FUNCTIONS INVESTMENT RATES LIBERALIZATION OF CAPITAL ACCOUNT LIQUID ASSETS LIQUIDITY LIVING STANDARDS LOAN LONG-TERM CAPITAL LOSS OF ASSETS LOW-INCOME COUNTRIES MACROECONOMIC ENVIRONMENT MACROECONOMIC INSTABILITY MACROECONOMIC STABILIZATION MACROECONOMIC UNCERTAINTY MARKET ECONOMIES MATURITY MATURITY TRANSFORMATION MONETARY FUND MONEY LAUNDERING NATIONAL OUTPUT NATURAL RESOURCES NET FOREIGN ASSETS ODIOUS DEBT OPTIMIZATION PER CAPITA INCOME PHYSICAL CAPITAL POLITICAL RISKS POOR CREDIT POOR CREDIT RATINGS PORTFOLIO PORTFOLIO CHOICE PORTFOLIO DIVERSIFICATION PORTFOLIO FLOWS PORTFOLIO INVESTMENTS POSITIVE EFFECTS PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE CAPITAL INFLOWS PRIVATE CREDITORS PRIVATE INVESTMENT PRIVATE SAVINGS PRODUCTION FUNCTION PRODUCTIVE ASSETS PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PUBLIC DEBTS PUBLIC INVESTMENT RATE OF RETURN REAL GDP REGRESSION ANALYSIS REGULATORY FRAMEWORK REMITTANCES RESERVE RESERVE BANK RESERVES RETURNS RISK PREMIUM SAVINGS SECURITIES SHORT-TERM DEBT SOURCE OF FUNDS STATEMENT STOCKS SUSTAINABLE GROWTH SWAPS TAX TAX REVENUE TAX REVENUES TAXATION TERRORISM THIRD WORLD DEBT TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY WEALTH Fofack, Hippolyte Ndikumana, Leonce Potential Gains from Capital Flight Repatriation for Sub-Saharan African Countries |
| geographic_facet |
Africa Africa Africa |
| relation |
Policy Research working paper ; no. WPS 5024 |
| description |
Despite the recent increase in capital
flows to Sub-Saharan Africa, the region remains largely
marginalized in financial globalization and chronically
dependent on official development aid. And with the
potential decline in the level of official development
assistance in a context of global financial crisis, the need
to increase domestic resources mobilization as well as
non-debt generating external resources is critical now more
than ever before. However, the debate on resource
mobilization has overlooked an important untapped source of
funds consisting of the massive stocks of private wealth
stashed in Western financial centers, a substantial part of
which left the region in the form of capital flight. This
paper argues that the repatriation of flight capital should
take a more prominent place in this debate from a moral
standpoint and for clear economic reasons. On the moral
side, the argument is that a large proportion of the capital
flight legitimately belongs to the Africans and therefore
must be restituted to the legitimate claimants. The economic
argument is that repatriation of flight capital will propel
the sub-continent on a higher sustainable growth path while
preserving its financial stability and without mortgaging
the welfare of its future generations through external
borrowing. The analysis in the paper demonstrates
quantitatively that the gains from repatriation are large
and dominate the expected benefits from other sources such
as debt relief. It is estimated that if only a quarter of
the stock of capital flight was repatriated to Sub-Saharan
Africa, the region would go from trailing to leading other
developing regions in terms of domestic investment, thus
initiating a big-push -led sustainable long-term economic
growth. The paper proposes some strategies for inducing
capital flight repatriation, but cautions that the success
of this program is contingent on strong political will on
the part of African and Western governments and effective
coordination and cooperation at the global level. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Fofack, Hippolyte Ndikumana, Leonce |
| author_facet |
Fofack, Hippolyte Ndikumana, Leonce |
| author_sort |
Fofack, Hippolyte |
| title |
Potential Gains from Capital Flight Repatriation for Sub-Saharan African Countries |
| title_short |
Potential Gains from Capital Flight Repatriation for Sub-Saharan African Countries |
| title_full |
Potential Gains from Capital Flight Repatriation for Sub-Saharan African Countries |
| title_fullStr |
Potential Gains from Capital Flight Repatriation for Sub-Saharan African Countries |
| title_full_unstemmed |
Potential Gains from Capital Flight Repatriation for Sub-Saharan African Countries |
| title_sort |
potential gains from capital flight repatriation for sub-saharan african countries |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820143339 http://hdl.handle.net/10986/4216 |
| _version_ |
1764390449790844928 |
| spelling |
okr-10986-42162021-04-23T14:02:16Z Potential Gains from Capital Flight Repatriation for Sub-Saharan African Countries Fofack, Hippolyte Ndikumana, Leonce ACCELERATOR ACCELERATOR EFFECT ADVANCED ECONOMIES ADVERSE EFFECTS AFFILIATED ORGANIZATIONS ASSET RECOVERY ASSETS BALANCE OF PAYMENTS BANK DEPOSITS BANK POLICY BANKING PRACTICES BANKING SYSTEM BENCHMARKS BOND BOND MARKETS BONDS BORROWING BUDGET CONSTRAINT CAPITAL ACCOUNT CAPITAL ACCOUNT TRANSACTIONS CAPITAL ACCUMULATION CAPITAL FLIGHT CAPITAL FLOWS CAPITAL FORMATION CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL MARKETS CAPITAL MOVEMENTS CAPITAL OUTFLOW CAPITAL OUTFLOWS CAPITAL STOCK CLAIMANTS COMMERCIAL BANKS COMPETITIVENESS COORDINATION FAILURES CORPORATE FINANCE CORRUPTION COUNTRY DEBT COUNTRY RISK CREDIBILITY CREDIT RATING CREDIT RATINGS CREDIT WORTHINESS CREDITOR CREDITORS CURRENCY APPRECIATION CURRENCY DEVALUATION CURRENT ACCOUNT CURRENT ACCOUNT DEFICITS DEBT DEBT BURDEN DEBT CRISIS DEBT OVERHANG DEBT REDUCTION DEBT RELIEF DEBT SERVICE DEBT STOCK DEBT-EQUITY DEBT-EQUITY SWAPS DEBTOR DEBTOR COUNTRIES DEBTS DEPOSITORS DEPOSITS DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT FINANCE DEVELOPMENT FINANCING DEVELOPMENT POLICY DIVERSIFICATION DOMESTIC CAPITAL DOMESTIC INVESTMENT DOMESTIC SAVING EARNINGS ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC RESEARCH ELASTICITY EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITIES EQUITY FLOWS EQUITY HOLDING EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXPENDITURE EXPENDITURES EXTERNAL BORROWING EXTERNAL CAPITAL EXTERNAL DEBT EXTERNAL FINANCING FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL FLOWS FINANCIAL GLOBALIZATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL DEFICITS FLIGHT OF CAPITAL FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FRAUD GDP GLOBAL CAPITAL GLOBAL DEVELOPMENT FINANCE GLOBAL FINANCE GOVERNMENT BORROWING GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GOVERNMENT REVENUE GROWTH RATE GROWTH RATES HOLDINGS HOLDINGS OF BANK HOUSEHOLDS HUMAN CAPITAL INCOME INCOME GROWTH INFLOWS OF CAPITAL INTEREST RATE INTEREST RATE DIFFERENTIALS INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL INVESTORS INVESTING INVESTMENT CLIMATE INVESTMENT FLOWS INVESTMENT FUNCTIONS INVESTMENT RATES LIBERALIZATION OF CAPITAL ACCOUNT LIQUID ASSETS LIQUIDITY LIVING STANDARDS LOAN LONG-TERM CAPITAL LOSS OF ASSETS LOW-INCOME COUNTRIES MACROECONOMIC ENVIRONMENT MACROECONOMIC INSTABILITY MACROECONOMIC STABILIZATION MACROECONOMIC UNCERTAINTY MARKET ECONOMIES MATURITY MATURITY TRANSFORMATION MONETARY FUND MONEY LAUNDERING NATIONAL OUTPUT NATURAL RESOURCES NET FOREIGN ASSETS ODIOUS DEBT OPTIMIZATION PER CAPITA INCOME PHYSICAL CAPITAL POLITICAL RISKS POOR CREDIT POOR CREDIT RATINGS PORTFOLIO PORTFOLIO CHOICE PORTFOLIO DIVERSIFICATION PORTFOLIO FLOWS PORTFOLIO INVESTMENTS POSITIVE EFFECTS PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE CAPITAL INFLOWS PRIVATE CREDITORS PRIVATE INVESTMENT PRIVATE SAVINGS PRODUCTION FUNCTION PRODUCTIVE ASSETS PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PUBLIC DEBTS PUBLIC INVESTMENT RATE OF RETURN REAL GDP REGRESSION ANALYSIS REGULATORY FRAMEWORK REMITTANCES RESERVE RESERVE BANK RESERVES RETURNS RISK PREMIUM SAVINGS SECURITIES SHORT-TERM DEBT SOURCE OF FUNDS STATEMENT STOCKS SUSTAINABLE GROWTH SWAPS TAX TAX REVENUE TAX REVENUES TAXATION TERRORISM THIRD WORLD DEBT TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY WEALTH Despite the recent increase in capital flows to Sub-Saharan Africa, the region remains largely marginalized in financial globalization and chronically dependent on official development aid. And with the potential decline in the level of official development assistance in a context of global financial crisis, the need to increase domestic resources mobilization as well as non-debt generating external resources is critical now more than ever before. However, the debate on resource mobilization has overlooked an important untapped source of funds consisting of the massive stocks of private wealth stashed in Western financial centers, a substantial part of which left the region in the form of capital flight. This paper argues that the repatriation of flight capital should take a more prominent place in this debate from a moral standpoint and for clear economic reasons. On the moral side, the argument is that a large proportion of the capital flight legitimately belongs to the Africans and therefore must be restituted to the legitimate claimants. The economic argument is that repatriation of flight capital will propel the sub-continent on a higher sustainable growth path while preserving its financial stability and without mortgaging the welfare of its future generations through external borrowing. The analysis in the paper demonstrates quantitatively that the gains from repatriation are large and dominate the expected benefits from other sources such as debt relief. It is estimated that if only a quarter of the stock of capital flight was repatriated to Sub-Saharan Africa, the region would go from trailing to leading other developing regions in terms of domestic investment, thus initiating a big-push -led sustainable long-term economic growth. The paper proposes some strategies for inducing capital flight repatriation, but cautions that the success of this program is contingent on strong political will on the part of African and Western governments and effective coordination and cooperation at the global level. 2012-03-19T19:12:00Z 2012-03-19T19:12:00Z 2009-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820143339 http://hdl.handle.net/10986/4216 English Policy Research working paper ; no. WPS 5024 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Africa |