Capital Flight & the Case of Panama
This essay set out to explore Panama as a source for capital flight. Thorough research was carried out, considering and surmising academic literature relevant to Panama’s position and development as a tax haven and a source for illegal capital flight. Attention was paid to international attempts to try and stop the flow of capital flight, including initiatives by the OECD. However limitations were found to such attempts. On top of that, it was found that the establishment of the Panama Canal and its relationship with the US at throughout the 20th century were both key to its economic position and tax haven qualities today. The final conclusion was that financial flows, including those of capital flight are likely to continue into the future.