Debate Speech

Thank You Honorable Speaker for giving me the floor. Now, I will discuss the international

scenario of capital flight.

Your Honor, Capital flight is not only our problem. Developing countries around the world are

facing the same kind of problems due to capital flight. And, in this era of globalization, capital

flight has become more available in countries due to advanced communication and transportation

systems. Apart from other countries, China encourages its investors to invest in overseas funds

and as the legal issues have full support, there are fewer approaches for choosing an illegal

approach to capital flight. According to Bloomberg, to manage and counterbalance the inflows,

China has steadily granted an additional quota for onshore funds to invest in securities overseas,

in March boosting it to $135 billion -- the highest ever.

Your Honor, but not everyone’s case is like China's. China uses its capital flight as an approach to

its debt trap. However, in the case of other developing countries where FDI is encouraged rather

than capital outflow, capital flight hurt the economy a lot and as the legal approaches have less

support for capital outflow, illegal approaches are used mostly. According to Y.V Reddy, a popular

way to calculate capital flight is by evaluating the mismatch between the balance of payments and

the external debt of a country. In the case of India, in 2021, the deficit in the current account is 9.6

billion USD and external debt is 570 billion USD. So, this mismatch indicates a huge amount of

capital flight from the country and most of it has happened through the illegal way which is

facilitated by Globalization.
Your honour, in the case of Pakistan, the scenario is even worse. In 2021, their deficit in the current

account is 5.6 billion USD and the amount of external debt is 1.3 lakh million USD which indicates

a really bad condition in case of capital outflow. So, from these scenarios, it can be seen that capital

flight is occurring in every country around the world but the approach of capital flight is mostly

hurting the developing countries.

Your Honor, in developing countries, the government allows FDI but in most cases, the capital

outflow is not welcomed which drives many investors to use illegal ways to flight the capital out

of the country. In India, capital flight is increased four to five times even due to globalization. In

the case of Pakistan, the amount can be measured in numbers as their external debt is very high.

Your Honor, our opponents might say that new laws are introduced to reduce capital flight and it

is true but it is also true that new technologies are introduced that can enable new, effective and

efficient approaches to capital flight. So, all of these are happening due to globalization.

Your Honor, through offshore banking people now can easily have a foreign bank account staying

in their host country. All the illegal money, which cannot be invested in the home country, now

people depositing on the foreign banks through electric banking. Which only have become possible

because of globalization. Again, the use of cryptocurrency such as bitcoins to flight capital from

one country to another is also a popular way for crypto miners to transform their bitcoins into

actual currency. This is all have been possible due to globalization. It has expanded how the capital

can be sent outside of the country both legally and illegally. But, your honour, My opponent

members will still try to prove that globalization doesn’t facilitate capital flight.