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Governance Research Digest – December 2012

Summary

In the third update of its original report, Global Financial Integrity estimates illicit financial flows from the developing world. The report presents four different methodologies for estimating illicit financial flows from developing countries, including the methodology used in Global Financial Integrity’s previous research.

Key Findings

  • From 2001 to 2010, developing countries lost US$5.86 trillion to illicit outflows.
  • The developing world lost US$859 billion in illicit outflows in 2010, an increase of 11% over 2009. The capital outflows stem from crime, corruption, tax evasion, and other illicit activity.
  • Conservatively estimated, illicit financial flows have increased in every region of developing countries. Real growth of illicit flows by regions over study period is as follows: Africa 23.8 percent, Middle East and North Africa (MENA) 26.3 percent, developing Europe 3.6 percent, Asia 7.8 percent, and Western Hemisphere 2.7 percent.
  • Top 10 countries with the highest measured cumulative illicit financial outflows between 2001 and 2010 were: 1. China: US$2.74 trillion, 2. Mexico: US$476 billion, 3. Malaysia: US$285 billon. 4. Saudi Arabia: US$210 billion, 5. Russia: US$152 billion, 6. Philippines: US$138 billion, 7. Nigeria: US$129 billion, 8. India: US$123 billion, 9. Indonesia: US$109 billion and 10. United Arab Emirates: US$107 billion

Author(s)

Global Financial Integrity

Source

PDF report