More than $12 trillion stuffed offshore, from developing countries alone
May 9th, 2016
New analysis from James S Henry looks at the amount of money leaving emerging economies headed for tax havens and offshore financial centers. More below:
From The Guardian:
“More than $12tn has been siphoned out of Russia, China and other emerging economies into the secretive world of offshore finance, new research has revealed, as David Cameron prepares to host world leaders for an anti-corruption summit.
. . .
The analysis, carried out by Columbia University professor James S Henry for the Tax Justice Network, shows that by the end of 2014, $1.3tn of assets from Russia were sitting offshore.“
David Cay Johnston, writing in The Daily Beast in the U.S., adds:
“The $12.1 trillion estimate—which amounts to two-thirds of America’s annual GDP being taken out of the economies of much poorer nations—is for flight wealth built up since 1970. Add to that flight wealth from the world’s rich regions, much of it due to tax evasion and criminal activities like drug dealing, and the global figure for hidden offshore wealth totals as much as $36 trillion.”
Cay Johnston goes into greater detail, and is worth reading. For the raw data behind the numbers, you’ll need to contact Henry directly: he expects to publish some further details soon. We’ll carry updates in the Reports section of our website.
Also see this Guardian story: Tax havens have no economic justification, say top economists. This is a letter co-ordinated by Oxfam, which is reproduced in full here. The list of 300 signatories is here.