Capital Flight from Resource-Rich Africa
The unrecorded transfer of money—i.e. “capital flight”—is a global economic problem. PERI researcher Léonce Ndikumana and co-authors focus on the experiences of Cameroon, Ghana, and Zambia to explain how capital flight contributes to broader illicit financial flows. Deal-makers help private actors embezzle funds, evade taxation and exchange controls, and create shell corporations to disguise funds. The financial hemorrhage through capital flight creates major obstacles for African countries to achieve their development goals and even finance basic services. Ndikumana advances a workable program for controlling capital flight, in Africa and more broadly.
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