Financial Transparency Coalition

Country Loses Over US$50 Billion Per Year; Second Highest Illicit Financial Outflows in Developing World

Global FInancial Integrity

WASHINGTON, DC – A new report from Global Financial Integrity (GFI), “Illicit Financial Flows from Developing Countries: 2000-2009,” released this week shows that Russia has the second highest measured illicit outflows out of the developing world–US$427 billion from 2000-2008, an average of US$53 billion per year.

Report co-author and GFI Lead Economist, Dev Kar has just published a piece on the blog of the Task Force on Financial Integrity and Economic Development examining some of the drivers behind these illicit outflows and offering some policy solutions.

In the blog, Mr. Kar writes:

Recent news from Russia confirms that corruption is a serious issue that, unless curbed, can prevent the country from emerging as a global economic powerhouse.  Corruption in Russia has been a hangover from the Soviet Union days. It is just that the forces of globalization have provided old hands and the up-and-coming younger generation of Russians with unprecedented opportunities to make money under the table. Of course, the exponential increase in Russia’s natural resource exports (such as petroleum products and natural gas) has not helped matters as far as overall governance is concerned. There is simply too much money in the hands of the too few.

China was the top ranked country measured with total outflows of $2.18 trillion while Mexico, Saudi Arabia, and Malaysia followed Russia at the #3, #4, and #5 spots, respectively.

Visit http://iff-update.gfip.org to download and learn more about the report.

See “President of Tunisia Flees Country, Just Like All the Illegal Capital” for more information on illicit financial outflows from Tunisia.

See “Mexico: As Violence Spreads, Money Flees” for more information on illicit financial outflows from Mexico.

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Contact:

Monique Perry Danziger
mdanziger@gfip.org
+1 202 293 0740 ext. 222

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The Task Force on Financial Integrity and Economic Development addresses inequalities in the global financial system that penalize billions of people, and advocates for improved transparency and accountability.

Global Financial Integrity is a coordinating committee and founding member of the Task Force on Financial Integrity & Economic Development.

For additional information please visit http://www.financialtransparency.org