Melvin D. Ayogu, Ph.D, Faculty of Commerce, University of Cape Town, Upper Campus, Leslie Commerce Building 2.19, Rondebosch, 7701, South Africa
Focusing on capital flight of the worst kind—stolen assets—we advocate a development agenda which highlights that the momentum to prevent public capital from taking flight has not been as strong as other forces which seek to aid and to lend to Africa. The ideology of using aid and debt to address resource gaps is well founded. What is however almost never offered is the intellectual basis of closing the resource gap through blocking the flight of public capital. Yet outrage over corruption in Africa is commonplace. Going forth, we therefore seek a shut-down of the escape hatch: (i) By developing an understanding as to why office holders behave as “roving bandits” over public resources (the domestic dimension of the problem), and (ii) through arguing that asset stripping in developing countries cannot be mitigated without a reconfiguration of international financial architecture. Furthermore that the current scope of intellectual engagement and policy options must be expanded to accommodate stolen assets recovery [StAR] initiatives and other complementary efforts to keep future loots onshore.
Keywords: Pernicious handshake; grabbing hand, helping hand, asset stripping, capital flight
JEL: o10