Certainly many controls are flawed and have the effects you mention-but not all do. These requirements are also very flexible. Nations can tailor them to specific circumstances. Chile has successfully operated this type of capital control since the early 1990s. The environment chapter suggests that radical reforms are required to respond to global challenges presented by climate change.
Climate change presents a significant challenge, particularly to developing countries.
For example, a one meter rise in the sea level would displace 70 million people in Bangladesh. At the same time, poverty is also huge so there is need for policies that both reduce poverty and preserve environment. One example is to reduce energy subsidies, since these primarily benefit people with higher incomes, at great cost to the economy and the environment. Or it can be focused on demand for greater local self determination-in which case it leads to the decentralization of powers or recognition of local cultural identity. The Ethiopian constitution now states that regions are formed on the basis of ethnic settlement patterns, language identity and with the consent of the people concerned.