Get our free book (in Spanish or English) on rainwater now - To Catch the Rain.

Flight capital

From Appropedia
Jump to navigation Jump to search

Flight capital is money which is transferred from one country to another, typically to avoid risk.

The term "flight capital" generally does not encompass criminal proceeds but instead refers to commercial and private funds being moved from one country to another. A distinction must be made between its legal and illegal manifestations.[1]

Illegal flight capital[edit]

Illegal flight capital is money which is gained through corruption or crime, then removed from a country to avoid being discovered or reclaimed. This is a form of money launderingW.[verification needed]

The term "flight capital" is sometimes used with different meanings; in particular the concept should not be confused with capital flightW which refers to investment funds which are moved out of countries legally due to factors such perceived risk.

Suggested projects[edit]

  • Chomsky claims that "The World Bank estimated that Venezuela's flight capital exceeded its foreign debt by 40% in 1987."[1]
  • How much of this is believed to be illegal flight capital? For that part which was not illegally obtained, what are the possible measures which could prevent this capital flight, and what are their implications?[Suggested project]
  • Is this a representative example of the burden of flight capital?[Suggested project]


  1. Money Laundering and Flight Capital: The Impact on Private Banking - Senate Committee on Governmental Affairs, Permanent Subcommittee on Investigations, November 10, 1999.

Interwiki links[edit]