Publication:
Potential Gains from Capital Flight Repatriation for Sub-Saharan African Countries

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dc.contributor.authorNdikumana, Leonce
dc.contributor.authorFofack, Hippolyte
dc.date.accessioned2012-03-19T19:12:00Z
dc.date.available2012-03-19T19:12:00Z
dc.date.issued2009-08-01
dc.description.abstractDespite 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.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820143339
dc.identifier.doi10.1596/1813-9450-5024
dc.identifier.urihttps://hdl.handle.net/10986/4216
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5024
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCELERATOR
dc.subjectACCELERATOR EFFECT
dc.subjectADVANCED ECONOMIES
dc.subjectADVERSE EFFECTS
dc.subjectAFFILIATED ORGANIZATIONS
dc.subjectASSET RECOVERY
dc.subjectASSETS
dc.subjectBALANCE OF PAYMENTS
dc.subjectBANK DEPOSITS
dc.subjectBANK POLICY
dc.subjectBANKING PRACTICES
dc.subjectBANKING SYSTEM
dc.subjectBENCHMARKS
dc.subjectBOND
dc.subjectBOND MARKETS
dc.subjectBONDS
dc.subjectBORROWING
dc.subjectBUDGET CONSTRAINT
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL ACCOUNT TRANSACTIONS
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL FLIGHT
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL MOVEMENTS
dc.subjectCAPITAL OUTFLOW
dc.subjectCAPITAL OUTFLOWS
dc.subjectCAPITAL STOCK
dc.subjectCLAIMANTS
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMPETITIVENESS
dc.subjectCOORDINATION FAILURES
dc.subjectCORPORATE FINANCE
dc.subjectCORRUPTION
dc.subjectCOUNTRY DEBT
dc.subjectCOUNTRY RISK
dc.subjectCREDIBILITY
dc.subjectCREDIT RATING
dc.subjectCREDIT RATINGS
dc.subjectCREDIT WORTHINESS
dc.subjectCREDITOR
dc.subjectCREDITORS
dc.subjectCURRENCY APPRECIATION
dc.subjectCURRENCY DEVALUATION
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT DEFICITS
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEBT CRISIS
dc.subjectDEBT OVERHANG
dc.subjectDEBT REDUCTION
dc.subjectDEBT RELIEF
dc.subjectDEBT SERVICE
dc.subjectDEBT STOCK
dc.subjectDEBT-EQUITY
dc.subjectDEBT-EQUITY SWAPS
dc.subjectDEBTOR
dc.subjectDEBTOR COUNTRIES
dc.subjectDEBTS
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDEVALUATION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectDEVELOPMENT BANK
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT FINANCE
dc.subjectDEVELOPMENT FINANCING
dc.subjectDEVELOPMENT POLICY
dc.subjectDIVERSIFICATION
dc.subjectDOMESTIC CAPITAL
dc.subjectDOMESTIC INVESTMENT
dc.subjectDOMESTIC SAVING
dc.subjectEARNINGS
dc.subjectECONOMIC CRISIS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC RESEARCH
dc.subjectELASTICITY
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectEQUITIES
dc.subjectEQUITY FLOWS
dc.subjectEQUITY HOLDING
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATE MOVEMENTS
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXTERNAL BORROWING
dc.subjectEXTERNAL CAPITAL
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL FINANCING
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL GLOBALIZATION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFISCAL DEFICITS
dc.subjectFLIGHT OF CAPITAL
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN INVESTMENT
dc.subjectFRAUD
dc.subjectGDP
dc.subjectGLOBAL CAPITAL
dc.subjectGLOBAL DEVELOPMENT FINANCE
dc.subjectGLOBAL FINANCE
dc.subjectGOVERNMENT BORROWING
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectGOVERNMENT REVENUE
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHOLDINGS
dc.subjectHOLDINGS OF BANK
dc.subjectHOUSEHOLDS
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME GROWTH
dc.subjectINFLOWS OF CAPITAL
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE DIFFERENTIALS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BANKS
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL FINANCIAL INSTITUTIONS
dc.subjectINTERNATIONAL INVESTORS
dc.subjectINVESTING
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT FLOWS
dc.subjectINVESTMENT FUNCTIONS
dc.subjectINVESTMENT RATES
dc.subjectLIBERALIZATION OF CAPITAL ACCOUNT
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDITY
dc.subjectLIVING STANDARDS
dc.subjectLOAN
dc.subjectLONG-TERM CAPITAL
dc.subjectLOSS OF ASSETS
dc.subjectLOW-INCOME COUNTRIES
dc.subjectMACROECONOMIC ENVIRONMENT
dc.subjectMACROECONOMIC INSTABILITY
dc.subjectMACROECONOMIC STABILIZATION
dc.subjectMACROECONOMIC UNCERTAINTY
dc.subjectMARKET ECONOMIES
dc.subjectMATURITY
dc.subjectMATURITY TRANSFORMATION
dc.subjectMONETARY FUND
dc.subjectMONEY LAUNDERING
dc.subjectNATIONAL OUTPUT
dc.subjectNATURAL RESOURCES
dc.subjectNET FOREIGN ASSETS
dc.subjectODIOUS DEBT
dc.subjectOPTIMIZATION
dc.subjectPER CAPITA INCOME
dc.subjectPHYSICAL CAPITAL
dc.subjectPOLITICAL RISKS
dc.subjectPOOR CREDIT
dc.subjectPOOR CREDIT RATINGS
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO CHOICE
dc.subjectPORTFOLIO DIVERSIFICATION
dc.subjectPORTFOLIO FLOWS
dc.subjectPORTFOLIO INVESTMENTS
dc.subjectPOSITIVE EFFECTS
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE CAPITAL FLOWS
dc.subjectPRIVATE CAPITAL INFLOWS
dc.subjectPRIVATE CREDITORS
dc.subjectPRIVATE INVESTMENT
dc.subjectPRIVATE SAVINGS
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVE ASSETS
dc.subjectPRODUCTIVE INVESTMENT
dc.subjectPRODUCTIVE INVESTMENTS
dc.subjectPUBLIC DEBTS
dc.subjectPUBLIC INVESTMENT
dc.subjectRATE OF RETURN
dc.subjectREAL GDP
dc.subjectREGRESSION ANALYSIS
dc.subjectREGULATORY FRAMEWORK
dc.subjectREMITTANCES
dc.subjectRESERVE
dc.subjectRESERVE BANK
dc.subjectRESERVES
dc.subjectRETURNS
dc.subjectRISK PREMIUM
dc.subjectSAVINGS
dc.subjectSECURITIES
dc.subjectSHORT-TERM DEBT
dc.subjectSOURCE OF FUNDS
dc.subjectSTATEMENT
dc.subjectSTOCKS
dc.subjectSUSTAINABLE GROWTH
dc.subjectSWAPS
dc.subjectTAX
dc.subjectTAX REVENUE
dc.subjectTAX REVENUES
dc.subjectTAXATION
dc.subjectTERRORISM
dc.subjectTHIRD WORLD DEBT
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSACTIONS COSTS
dc.subjectTRANSPARENCY
dc.subjectWEALTH
dc.titlePotential Gains from Capital Flight Repatriation for Sub-Saharan African Countriesen
dspace.entity.typePublication
okr.crossref.titlePotential Gains From Capital Flight Repatriation For Sub-Saharan African Countries
okr.date.doiregistration2025-04-10T12:07:09.156081Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820143339
okr.guid418061468008733569
okr.identifier.doi10.1596/1813-9450-5024
okr.identifier.externaldocumentum000158349_20090820143339
okr.identifier.internaldocumentum10973573
okr.identifier.reportWPS5024
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/08/20/000158349_20090820143339/Rendered/PDF/WPS5024.pdfen
okr.region.administrativeAfrica
okr.region.administrativeAfrica
okr.region.geographicalAfrica
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication6a1b1817-ea44-5d60-834a-9d658d5e118c
relation.isAuthorOfPublication.latestForDiscovery6a1b1817-ea44-5d60-834a-9d658d5e118c
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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