|Illicit Financial Flows from Developing Countries: 2001-2010|
A December 2012 Report from Global Financial Integrity
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Illicit Financial Flows Report Update: In the third update of its original report, Global Financial Integrity introduces a new, more accurate, methodolgy to estimate illicit financial flows from the developing world.
The report for the first time includes a special analysis of sovereign wealth funds and their relationship to illicit financial flows.
Press Release: New Report Finds Crime, Corruption, and Tax Evasion at Near-Historic Highs in 2010 - December 17, 2012
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Contact: Clark Gascoigne
+1 202-293-0740 ext 222
About the Authors
The authors would like to thank intern Simon Ramirez for his assistance with data research as well as Raymond Baker and other staff at Global Financial Integrity (GFI) for helpful comments. Any errors that remain are the authors’ responsibility.
Dev Kar, formerly a Senior Economist at the International Monetary Fund (IMF), is Lead Economist at GFI.
Sarah Freitas is an Economist at GFI.
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.
The report finds that illicit financial flows. From 2001 to 2010, developing countries lost US$5.86 trillion to illicit outflows.
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:
Top 10 countries with the highest measured cumulative illicit financial outflows between 2001 and 2010 were:
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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, and encourages scholars and experts to weigh in which best estimates illicit financial flows.
All analysis unless otherwise noted refers to the GER+HMR method, which represents a highly conservative estimate for illicit financial outflows.
Under the previous GFI methodology, the developing world lost US$1.138 trillion in 2010, a 26% increase over 2009.
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