India was ranked the fifth largest exporter of black money between 2002-2011 with over 343 billion sent abroad,and it was placed third when nearly USD 85 billion was exported within a year in 2011,a new report said today.
Crime,corruption and tax evasion drained USD 946.7 billion from the developing world in 2011,up more than 13.7 per cent from 2010,when illicit financial outflows totalled USD 832.4 billion,according to the report titled ‘Illicit Financial Flows from Developing Countries: 2002-2011’.
The findings which peg cumulative illicit financial outflows from developing countries at USD 5.9 trillion between 2002 and 2011 are part of a new study published yesterday by Global Financial Integrity (GFI),a Washington-based research and advocacy organisation.
India was ranked fifth largest exporter of illicit money between 2002-2011,with a total of USD 343.04 billion sent abroad,and in 2011 itself the country was placed third when USD 84.93 billion was exported,the report said.
“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,” said GFI president Raymond Baker.
“Anonymous shell companies,tax haven secrecy,and trade-based money laundering techniques drained nearly a trillion dollars from the world’s poorest in 2011,at a time when rich and poor nations alike are struggling to spur economic growth,” he said.
The USD 946.7 billion of illicit outflows lost in 2011 is a 13.7 per cent uptick from 2010 which saw developing countries hemorrhage USD 832.4 billion and a dramatic increase from 2002,when illicit outflows totaled just USD 270.3 billion.
The study estimates the developing world lost a total of USD 5.9 trillion over the decade spanning 2002 through 2011.
The report said six of the top 15 exporters of illicit capital are in Asia (China,Malaysia,India,Indonesia,Thailand and the Philippines),two are in Africa (Nigeria and South Africa),four in Europe (Russia,Belarus,Poland and Serbia),two are in the Western Hemisphere (Mexico and Brazil) and one is in the MENA region (Iraq).
In the last 10 years,China topped the list with USD 1.08 trillion in black money outflow,followed by Russia (USD 880.96 billion),Mexico (USD 461.86 billion) and Malaysia (USD 370.38 billion).
“It’s extremely troubling to note just how fast illicit flows are growing,” said GFI Chief Economist Dev Kar.
“Over the past decade,illicit outflows from developing countries increased by 10.2 per cent each year in real terms significantly outpacing GDP growth. This underscores the urgency with which policymakers should address illicit financial flows,” Kar said.