Achieving the SDGs supports the existence of rules-based markets, transparent financial systems, and non-corrupt and well-governed institutions. The corruption and illicit flows of finance in developing countries raises a concern about the effectiveness of the aid and undermines the economic climate for the potential investors.
According to estimates by Global Financial Intergrity, one trillion dollars is lost every year by developing countries trough illicit financial outflows connected to trade mispricing, bribery, theft, kick-backs, tax evasion, organized crime, and trafficikng of drugs, weapons and humans. This means that for every one US dollar developing countries receive in external assistance, ten US dollars are lost to illicit financial flows.
IFFs drain currency reserves, heighten inflation, reduce tax collection, discourage investment and weaken free trade. These practices ravage poverty alleviation efforts, undermine the integrity of government and damage the foundation of society.
The top 5 countries on the IFFs world map: China, Russia, Mexico, India and Malaysia generate a total of 357,500 millions of U.S. dollars of illicit finance flow in average.
Below are some examples of how those funds could help achieving the MDGs:
3 healthy meals (2$ each) per day for all Chinese citizens living under the poverty ratio could be bought for 365 days of the year.
(11.2% of China population lives under the ratio of 1.90$ a day – data from year 2010).
127,679 small hospitals could be built and run for 10 years in developing countries.
(The construction cost of a 50 beds hospital in developing countries is estimated at 1.5 M U.S. dollars with a yearly direct cost of 130.000 $).
WE CAN MAKE A CHANGE.
Check the IFFs data in your country here: Global Finance Integrity