Tag: University of Massachusetts

New Estimates of Capital Flight from Sub-Saharan African Countries: Linkages with External Borrowing and Policy Options

(April 1, 2008) Over the past decades, African countries have been forced by external debt burdens to undertake painful economic adjustments while devoting scarce foreign exchange to debt-service payments. On the other hand, African countries have experienced massive outflows of private capital towards Western financial centers. Indeed, these private assets surpass the continent’s foreign liabilities, ironically making sub-Saharan Africa a “net creditor” to the rest of the world.