In order to break the cycle of poverty, we must first start with the heart. Catholic Online School is something very special, providing FREE Catholic Education to anyone, anywhere. Learn more about the Catholic Online School
Help us create new hope with your donation. This year, please consider making a donation of $5, $20, $50 or whatever you can to support Catholic Online School. Support Catholic Online School
'Dirty money' greatly hindering help to developing nations
By Catholic Online (NEWS CONSORTIUM)
12/12/2013 (4 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 OCTOBER 2017
Workers and the Unemployed. That all workers may receive respect and protection of their rights, and that the unemployed may receive the opportunity to contribute to the common good.
Is now the time to sell on Wall Street? Stocks are on a bubble, according to multiple analysis and expert opinions. Fundamental market ... continue reading
The economy is about to go into recession according to several Wall Street firms. They are warning investors to prepare for an end to the ... continue reading
Get ready for self checkout everywhere: 3.5 million retail cashiers are about to be replaced by automation Watch
Automation is coming soon to a store near you as retailers look for ways to cut costs and improve profits. The best way to accomplish this ... continue reading
The highly relevant quote, "Budgets are moral documents," has been arguably attributed to Rev. Martin Luther King, Jr. But if he didn't ... continue reading
A group of central bankers has warned that a great recession, possibly larger than the 2007-2008 recession is looming on a global scale. ... continue reading
by Catholic Online
- The Net Neutrality Scam: Get ready to pay a lot more for a lot less ...
- St. John of the Cross: Saint of the Day for Thursday, December 14, 2017
- The world's suffering little ones - don't forget them this Christmas
- Alveda King, niece of Dr. Martin Luther King, Jr., meets with Pope ...
- Daily Reading for Saturday, December 16th, 2017 HD Video
- Pope Francis says you need to go to Mass!
- Daily Readings for Thursday, December 14, 2017
- The Net Neutrality Scam: Get ready to pay a lot more for a lot less HD
- Could it be an alien spacecraft? Scientists listening today for signals from strange object HD
- Daily Reading for Friday, December 15th, 2017 HD
- Is Facebook ripping apart human civilization? HD
Learn about Catholic world
Inform - Inspire - Ignite
Catholic Online Saints
Your saints explained
Catholic Online Prayers
Prayers for every need
Catholic Online Bible
Complete bible online
Catholic Online News
Your news Catholic eye
Today's bible reading
Products and services we offer
Catholic Online Shopping
Catholic medals, gifts & books
The California Network
Inspiring streaming service
Learn the Catholic way