Tuesday, December 18, 2012

Cost to poor countries of illicit Cash flow: $859B

TJN posts this report from Global Financial Integrity, showing that
Crime, corruption, and tax evasion cost the developing world $858.8 billion in 2010
... the biggest exporters of illicit financial flows over the decade are:

  • China,  $274 billion average ($2.74 trillion cumulative)
  • Mexico, $47.6 billion avg. ($476 billion cum.)
  • Malaysia, $28.5 billion avg. ($285 billion cum.)
  • Saudi Arabia, $21.0 billion avg.  ($210 billion cum.)
  • Russia, $15.2 billion avg. ($152 billion cum.)
Table 2 of the report's appendix has a complete list. This demonstrates why information gathering and exchange has got to be global and, contrary to how it's going right now, should probably start with the world's wealthiest countries imposing their gathering, reporting, and sharing regime on their own financial institutions vis a vis the rest of the world, rather than working to protect their own bases first and foremost.  This is a time for leadership by example.

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