Potential Gains from Capital Flight Repatriation for Sub.pdfVIP

WPS5024 d e z i r o h t u A e r Policy Research Working Paper 5024 u s o l c s i D c i l b u P d e z i r o h t u A e r u Potential Gains from Capital Flight s o l c s i Repatriation for Sub-Saharan African D c i l b u Countries P d Hippolyte Fofack e z i r Léonce Ndikumana o h t u A e r u s o l c s i D c i l b u P d e z i r o h t u A e r u s o l c s i D c i l b The World Bank u P World Bank Institute Poverty Reduction and Economic Management Division August 2009 Policy Research Working Paper 5024 Abstract Despite the recent increase in capital flows to Sub- legitimate claimants. The economic argument is that Saharan Africa, the region remains largely marginalized repatriation of flight capital will propel the sub-continent in financial globalization and chronically dependent on a higher sustainable growth path while preserving its on official development aid. And with the potential financial stability and without mortgaging the welfare decline in the level of official development assistance in of its future generations through external borrowing. a context of global financial crisis, the need to increase The analysis in the paper demonstrates quantitatively domestic resources mobilization as well as non-debt that the gains from repatriation are large and dominate generating external resou