Illicit outflows fleeced India, Asian nations of billions
(Big News Network) – India, Malaysia and Indonesia were fleeced to the tune of $517 billion through illicit financial outflows over the past decade, Washington-based research and advocacy organisation Global Financial Integrity (GFI) has said.
“India suffered illicit financial outflows of $123 billion, Malaysia haemorrhaged $285 billion in illegal capital flight and Indonesia lost $109 billion in dirty money,” GFI said in a report.
GFI, which seeks to promote transparency in the international financial system, also said Russia “experienced illicit inflows and outflows totalling $764.3 billion since the collapse of the Soviet Union.
“Our research shows that illicit financial flows are one of the biggest hindrances to economic growth and one of the primary drivers of inequality in rich and poor nations alike,” said GFI president Raymond Baker.
“The global economy is at a very tenuous place right now with major emerging economies like India, Brazil, and Malaysia in turmoil, China showing signs of slower growth and European nations just beginning a very fragile recovery,” Baker added.
GFI said its research has shown that tax haven secrecy, anonymous shell companies and trade-based money laundering facilitated the illegal outflow of roughly $261 billion from the Greek economy in the lead-up to the European debt crisis, drained $3.79 trillion from China between 2000 and 2011, and tax haven abuse is estimated to cost U.S. taxpayers roughly $150 billion per year.
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