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CONTENTS
INTRODUCTION ...................................................................................................................................................... 1 DEFINITIONS....................................................................................................................................................... 1 GROUPS................................................................................................................................................................. 2 METHODOLOGY ................................................................................................................................................. 4 1 – CAPITAL FLOW TRENDS IN THE COMCEC MEMBER COUNTRIES ................................................... 5 1.1. CAPITAL INFLOWS TO THE COMCEC MEMBER COUNTRIES – AN OVERVIEW .................. 8 1.2. TRENDS AMONG COUNTRY INCOME GROUPS ............................................................................13 1.3. GLOBAL CARITAL OUTFLOWS- A SNAPSHOT .............................................................................20 2 – LEGAL AND INSTITUTIONAL FRAMEWORKS IN THE COMCEC MEMBER COUNTRIES ..........25 2.1. LOW-INCOME COUNTRIES .................................................................................................................26 2.2 LOWER-MIDDLE INCOME COUNTRIES ..........................................................................................30 2.3. UPPER-MIDDLE INCOME COUNTRIES ...........................................................................................35 2.4. HIGH-INCOME COUNTRIES ................................................................................................................40 3 – COMPLINACE WITH INTERNATIONAL FRAMEWORKS GOVERNING CAPITAL ACCOUNT LIBERALISATION AMONG THE COMCEC MEMBER COUNTRIES...........................................................45 3.1. APPLICABILITY OF FRAMEWORKS AMONG THE COMCEC MEMBER COUNTRIES .........48 3.1.1. LOW-INCOME COUNTRIES ......................................................................................................................... 49 3.1.2. LOWER-MIDDLE INCOME COUNTRIES................................................................................................. 50 3.1.3. UPPER-MIDDLE INCOME COUNTRIES................................................................................................... 52 3.1.4. HIGH-INCOME COUNTRIES ........................................................................................................................ 54 4 – ENHANCING CAPITAL FLOWS AMONG THE COMCEC MEMBER COUNTRIES- OPPORTUNITIES AND OBSTACLES ................................................................................................................58 4.1. HOW REFORMS CAN AFFECT CAPITAL FLOWS ..........................................................................58 4.2. THE ROLE OF COUNTRY ENDOWMENT AND INVESTOR MOTIVATION.............................59 4.3. THE IMPORTANCE OF SEQUENCING ..............................................................................................60 4.4. GLOBAL LIQUIDITY AS A DRIVER OF FINANCIAL FLOWS ......................................................61 4.5. THE POTENTIAL EFFECT OF ENHANCED CAPITAL FLOWS ON ECONOMIC GROTH WITHIN COUNTIRES.......................................................................................................................................64 4.6. OBSTACLES AND OPPORTUNITIES AMONG THE COMCEC MEMBER COUNTRIES .........66 4.6.1. LOW- INCOME CONUNTRIES .................................................................................................. 66 4.6.2. LOWER-MIDDLE INCOME COUNTRIES.................................................................................... 69 4.6.3. UPPER-MIDDLE INCOME COUNTRIES..................................................................................... 71 4.6.4. HIGH-INCOME COUNTRIES..................................................................................................... 74 5- CONCLUSION....................................................................................................................................................77 APPENDICES...........................................................................................................................................................84