In a resource starved country, enabling individuals, particularly those with high net-worth, to transfer their wealth to foreign places is surely a low priority policy objective. As far as the financial sector is concerned, the restrictions stem from the premise that it is this segment which creates systemic vulnerabilities in an open economy. 18. There is another way of classifying capital flows, viz.
by the asset class – equity, debt and immovable property. The distinction between equity and debt is too well known. The two financial contracts have their own structures and implications.