'Dirty money' greatly hindering help to developing nations
By Catholic Online (NEWS CONSORTIUM)
12/12/2013 (3 years ago)
Catholic Online (www.catholic.org)
With poverty, war and lack of growth, developing nations must also deal with rampant corruption. Money sent to these developing countries become lost due to shady business transactions, negating most if not all the funds sent in aid. Global Financial Integrity, the Washington-based group that exposes financial corruption estimates that for every $1 in economic development assistance sent to a developing country, $10 are lost via these illicit outflows.
The amount of bad money departing 150 developing countries totaled $946.7 billion in 2011.
LOS ANGELES, CA (Catholic Online) - "As the world economy sputters along in the wake of the global financial crisis, the illicit underworld is thriving-siphoning more and more money from developing countries each year," the group's President Raymond Baker says.
In 2011, developing countries lost nearly $1 trillion to fraud, corruption and shady business transactions - far more than the foreign aid they received. It's only getting worse: Dirty money leaving emerging nations is accelerating.
The amount of bad money departing 150 developing countries totaled $946.7 billion in 2011. These figures are up 13.7 percent from 2010. It was the largest such amount in a decade.
G20 global leaders already trying to repair their economies after the 2008-2009 recession, face a widening gap between rich and poor citizens. Members are cracking down on tax evasion and the corporate structures used to launder money and hide criminal wealth.
Geographically, the Middle East and North Africa saw the fastest increase in dirty money directly coming from illicit business, crime and corruption. Such illicit outflows rose 31.5 percent in the years between 2002 to 2011, which led to the Arab Spring uprisings. A rallying cry at that time was fighting the corruption within government circles. Sub-Saharan Africa followed closely behind, where illicit outflows rose 20.2 percent in the decade ended 2011, the latest period for which data are available.
Asia lost the largest amount of money, accounting for 40 percent of the $5.9 trillion of illicit financial outflows from the developing world in the 10-year period. The majority of those funds came from China at $1.08 trillion, GFI said.
"The evidence continues to mount - illicit financial flows have a devastating impact on economic development and stability in Africa," Dev Kar, GFI's chief economist says.
Illicit flows cannot be precisely measured, since by their nature they are hidden. GFI's updated methodology this year included the re-exporting through Hong Kong and different types of trade data in order to come up with an estimate.
Trade mis-invoicing, whereby exports and imports are booked at different values to avoid taxes or to hide large transfers of money, is the most popular method, accounting for over 79 percent of the illicit flows.
Copyright 2017 - Distributed by THE CALIFORNIA NETWORK
Pope Francis Prayer Intentions for APRIL 2017
Young People. That young people may respond generously to their vocations and seriously consider offering themselves to God in the priesthood or consecrated life.
Is to time to break up the monopolies? As Google, Facebook and others grow larger, calls for their breakup are emerging. There is an urgent ... continue reading
The Tesla Model 3 is a game changer for the auto industry. It is a reasonably priced, well-designed electric car that looks good. It has ... continue reading
During an interview with Dutch newspaper Straatinieuws, Pope Francis explained: "I would like a world without the poor. We must fight for ... continue reading
Is YOUR job in danger? Thousands of Americans to lose jobs as 218 iconic American brands collapse Watch
An iconic American brand with a century-long history is shutting down hundreds of stores in the face of bankruptcy. LOS ANGELES, CA ... continue reading
Yes, Millennials, you have a problem, but it's not your fault. This is the conclusion of Simon Sinek, the famous leadership consultant who ... continue reading
by Catholic Online
- 'Acid is now a fashionable weapon of choice' - Britain averages one ...
- Pope Francis arrives in Egypt with powerful message HD Video
- It feels great to win! Here's the list of things President Trump has ...
- Daily Reading for Tuesday, May 2nd, 2017 HD Video
- Daily Readings for Saturday, April 29, 2017
- Report claims extreme weather on DECLINE - but is someone lying?
- St. Catherine of Siena: Saint of the Day for Saturday, April 29, 2017
- Daily Reading for Monday, May 1st, 2017 HD
- Daily Reading for Sunday, April 30th, 2017 HD
- Day 9 - Novena for Workers, the Unemployed and Underemployed HD
- Day 8 - Novena for Workers, the Unemployed and Underemployed HD
Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.