1. Why don’t reforming Bottom Billion nations attract more capital investment?
Poor governments and government policy have caused investors to be weary of these countries. High risk discourages investment. The government with the strongest newest reforms have historically been the worst performing governments so the turnaround was great. Investor rating system exaggerated the difficulties that Africa was having and made most investors decide Africa was simply not worth.

2. Define capital flight and why it is happening in Bottom Billion Countries.

Capital flight is when money made inside a country is put in a bank in a different country. By 1990 38% of public wealth in Africa was held abroad. Africans say that the reason they do this is because of political corruption they hold their money elsewhere because they don’t trust their own government. Don’t count on global capital mobility because it only reinforces the traps.

 

3. How does migration impact these countries?

Educated people leave at a far greater rate than uneducated people from the poorest countries. With so many of the most desirable people leaving the countries become worse and worse off. The very people that could make the most dramatic change are the ones that are leaving.