Crime, corruption and tax evasion drained $ 946.7 billion from the developing world in 2011, up more than 13.7 per cent from 2010 — when illicit financial outflows totalled $ 832.4 billion, according to the report titled “Illicit Financial Flows from Developing Countries: 2002-2011”. The findings — which peg cumulative illicit financial outflows from developing countries at $ 5.9 trillion between 2002 and 2011 — are part of a new study published Dec 11 by Global Financial Integrity (GFI), a Washington-based research and advocacy organisation.
The $ 946.7 billion of illicit outflows lost in 2011 is a 13.7 per cent uptick from 2010 — which saw developing countries hemorrhage $ 832.4 billion — and a dramatic increase from 2002, when illicit outflows totaled just $ 270.3 billion. The study estimates the developing world lost a total of $ 5.9 trillion over the decade spanning 2002 through 2011.
The report said six of the top 15 exporters of illicit capital are in Asia (China, Malaysia, India, Indonesia, Thailand and the Philippines), two are in Africa (Nigeria and South Africa), four in Europe (Russia, Belarus, Poland and Serbia), two are in the Western Hemisphere (Mexico and Brazil) and one is in the MENA region (Iraq). In the last 10 years, China topped the list with $ 1.08 trillion in black money outflow, followed by Russia ($ 880.96 billion), Mexico ($ 461.86 billion) and Malaysia ($ 370.38 billion).
“It’s extremely troubling to note just how fast illicit flows are growing,” said GFI Chief Economist Dev Kar. “Over the past decade, illicit outflows from developing countries increased by 10.2 per cent each year in real terms —significantly outpacing GDP growth. This underscores the urgency with which policymakers should address illicit financial flows,” Kar said. (PTI)