Capital flight is a serious issue in highly indebted countries due to economic instability, lack of investor confidence, and unfavorable government policies. Causes include political turmoil, high inflation, and currency devaluation, which drive investors to seek safer investments abroad. To address capital flight, countries can implement sound economic policies, improve governance, and create a more favorable investment climate to restore confidence among investors.
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Question 4 (Report 3)
Capital flight is a serious issue in highly indebted countries due to economic instability, lack of investor confidence, and unfavorable government policies. Causes include political turmoil, high inflation, and currency devaluation, which drive investors to seek safer investments abroad. To address capital flight, countries can implement sound economic policies, improve governance, and create a more favorable investment climate to restore confidence among investors.