Barriers and Opportunities for Enhancing Capital Flows
In the COMCEC Member Countries
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Figure 5.1: Factors to address in attracting capital flows and potential means for
attracting them
 Global macroeconomic and liquidity conditions tend to affect financial capital flows
(such as bonds and portfolio investment) more so than foreign direct investment
 Beneath this, at the country level, countries face a number of barriers to attracting
financial capital flows – either general constraints or ones specifically linked to
financial stability and institutional capacity
 As a result, the policy recommendations and reforms that a country within a particular
income group needs to tackle and address differ – and achieving a proper sequencing
of these reforms is essential to both attracting capital flows and making the most of
them