The potential impact of these developments is significant. Well, it is bad. Throughout recorded history, when taxes, social or religious policies or other political conditions have become onerous, freedom-loving individuals have either fought to overthrow the oppression or fled to other locations where they were not so oppressed. Like the Pilgrims who fled religious persecution in England in favor of America, the oppressed vote with their feet. This clearly is welfare enhancing for the formerly oppressed individuals, although likely welfare-reducing for the former oppressors.
Corporate raiders specialize in taking over mismanaged companies and finding better management.
Similarly, capital flight away from political mismanagement serves the same purpose. Whether the political mismanagement takes the form of direct seizure through high taxes or onerous regulation, capital flight sends an unmistakable message that individuals are oppressed. Labour flight serves the same purpose. The real problems lay in Rwanda and Kosovo, not in the safe havens of Uganda or Montenegro. The plight of the immobile.