A second reason capital might not flow to poor nations is that property rights are often not enforced. Corruption is much more prevalent; revolutions, coups, and expropriation of wealth are more common; and goverments often default on their debts. So even if capital is more valuable in poor nations, foreigners may avoid investing their wealth there simply because they are afraid of losing it. Moreover, local investors face similar incentives. Imagine that you live in a poor nation and are lucky enough to have some wealth to invest; you might well decide that putting it in a safe country like the United States is your best option, even if capital is less valuable there than in your home country.