THE LIQUIDITY PROBLEM Capital-gains taxes might eventually come due with some of these investments, and the rate could well rise above the current 15 percent long-term rate before too long.
Moreover, if China develops financial problems, capital outflows may accelerate.
Second, in countries with serious governance problems, capital controls can be a particularly pernicious source of corruption.
The truth is there is no cure-all for the ethical, moral and practical problems capital punishment raises -- that is, short of a Supreme Court ruling finally abolishing the inherently cruel and unusual "machinery of death," as Justice Harry Blackmun termed it.
It is premature to conclude whether the various forms of private sector involvement will successfully overcome the major problems (capital shortage, inefficient operation, and service quality) in China's water sector.
Has China got a problem with capital flight Economists tend to be more sanguine about China's capital flight than, say, Russia's (see story above).
In other words, in solving the problem of capital shortage, enterprises can first be in debt to the upstream and repay after the draining of capital.
The British version might be: chronic underinvestment is a problem, foreign capital the solution.
Unlike the climate change problem, natural capital has a big spatial dimension.
Yet saving Lehman would not have addressed the broader problem: the capital shortage in the global banking system.
A linguistic difficulty reflects the problem: "Venture capital" translates badly as Risikokapital, which sounds risky rather than appealing.
