THE RESPONSE OF PRIVATE WEALTH TO CAPITAL FLIGHT CONTROLS - SOUTH-AFRICA AS A CASE-STUDY

This essay looks at the interrelationship between private capital hold ers and the state in developing countries. It analyses the motivations of residents engaging in capital flight and the governmental response . As free capital mobility places intense strains on the authorities' ability to run the state, policies are adopted to control outward flow s. The author studies this 'policy-flight-policy spiral' pattern as it applies to the South African case.