This edited collection provides the most comprehensive analysis of capital flight from Africa, covering economic and institutional aspects, as well as domestic and global dimensions. It is organized into four parts. The first part discusses the importance of capital flight in the context of development policy discourse at the national and international level. This part takes stock of the existing evidence on the nature, causes and consequences of capital flight. It provides the most recent data on the magnitude of capital flight from 39 African countries, and a detailed analysis of the impact of capital flight on economic development in general, and on poverty reduction in particular. The second part examines economic factors and impacts of capital flight on macroeconomic outcomes with a focus on growth, and the linkages between capital flight and monetary policy, financial liberalization, and the global financial system. The third part explores the domestic and international environment and its relevance for capital flight and stolen asset recovery. It discusses the role of governance, tax evasion, and secrecy jurisdictions in driving capital flight. The last part of the book offers suggestions for strategies to address the problem of capital flight from African countries.
This volume is drawn from final research papers developed under the auspices and support of the Thematic Research Programme of the African Economic Research Consortium (AERC). The AERC thematic research modality is a tried and tested method of capacity building in research, and has been in operation since AERC’s inception. At its core are the biannual research workshops, which bring together researchers (from both academia and research institutions) grouped according to thematic areas present and review each other’s work. The peer review mechanism is monitored by resource persons from around the globe, who provide quality assurance, guidance, and oversight. The five thematic groups are: A: Poverty, Income Distribution and Food Security; B: Macroeconomic Policies, Investment and Growth; C: Finance and Resource Mobilization; D: Trade and Regional Integration; and E: Political Economy, Natural Resource Management and Agricultural Policy Issues. Each research project is presented three times during the biannual research workshops at proposal stage, as work in progress and the final report, thus allowing the researchers to benefit from comments and feedback by peers and resource persons throughout the process. Final reports are then externally refereed, and accepted papers published in the AERC Research Paper Series. This volume is the first of its kind to bring together papers from thematic research projects. It is further testimony to the capacity building model that AERC has employed successfully over the years, allowing the Consortium to fulfill one of its major mandates - to strengthen local capacity for conducting independent, rigorous inquiry into problems pertinent to the management of African economies.
The quality of services delivered is an important determinant of people’s well-being for a given bundle of resources. Resources are critical to the delivery of services to clients. But resources are just only one, and sometimes a small component, of the performance factors that impact on the quality of service provision. Recent evidence shows that even when resources are allocated for provision of services, a large portion of the resources might not reach the intended clients. In some cases, services may not even be provided because frontline providers do not show up to work, resulting in poor delivery of services. The implication is that availability of resources does not guarantee that intended beneficiaries do in fact receive the benefits from the resources allocated.Read more: Institutions and Service Delivery in Africa