I discuss how financial crises, revolutions, military coups, and other forms of capital instability can influence the flow of capital. While the damage caused by this type of capital flight is relatively limited and can be prevented through proper policies, the second type of evasion involves the escape of capital from illegal sources such as private embassies, drug money, commissions, secret deals, and illicit businesses. These capital flows seek safe havens, often in countries like Switzerland that provide banking secrecy, to disappear from the reach of local financial authorities and national intelligence sources. For example, it's estimated that African leaders transferred $20 billion to Swiss banks in 1999 alone.
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