Homework Bottom Billion
1. Why don't reforming Bottom Billion nations attract more capital investment?
People with money to investigations are not willing to look past the high risk involved. There is a rating system from 0 to 100 and many of the poorest nations are rated less than 20 and most investors will not invest in anything less than 40. Poor government control and policy over the years have made people too scared to invest is considered to high risk. People simply went to Asia and gave up on Africa.
2. Define capital flight and why it is happening in Bottom Billion Countries.
Capital flight is when money made by people inside of the country is kept outside the country in another country's bank. The example they use was coffee if you get $1000 for your coffee you will keep $500 offshore someplace. This means that people inside these developing nations don't believe enough in the economy of their own nation to put their money into it. People blame corruption and government policies as the reasons they keep money offshore. This
3. How does migration impact these countries?
The people that can make the mostly in the poorest countries are the educated population. People with skills and education leave at a far greater rate than uneducated workers. The workers that are left over that don't leave are a drain on the nation and things only get worse.