Balancing capital needs and economic stability. An examination of challenges in the governance of increasing short-term international private capital flows in poor countries: The case of East Africa

Globalization of finance has impacted the various economies of the world in different ways. On the one hand, it has allowed for capital to flow freely across borders. This is beneficial to those areas that cannot create sufficient capital from within. On the other hand, globalization of finance has also increased international short-term private capital flows. With sudden, massive withdrawals, such flows can be very risky, not only to capital-importing countries but also regional economies and the global economy. Using East African countries as examples, and from a governance perspective, this thesis examines the challenges facing poor countries in the regulation of international short-term private capital flows and puts forward some general recommendations on how the governance of international short-term private capital can be improved, at the country, regional and global stages.