India’s lost $128 bn in illicit capital outflow in a decade
December 15th, 2011 - 7:51 pm ICT by IANS
Washington, Dec 15 (IANS) A staggering $128 billion in capital illegally flowed out of India in the last decade, making the country the 15th largest victim of illicit financial outflows that cost developing countries $903 billion in 2009, a new study says.
The study comes as New Delhi announced it would bring out a white paper on black money stashed away in tax havene abroad. Indian Finance Minister Pranab Mukherjee Wednesday said the government will soon introduce a bill to strengthen anti-money laundering laws.
While $903 billion marks a drop from the $1.55 trillion that illicitly flowed out of the developing world in 2008, the study finds the decrease almost entirely attributable to the global financial crisis than any governance improvement or economic reforms.
“This is a breathtakingly large sum at a time when developing and developed countries alike are struggling to make ends meet,” said Raymond Baker, director of research and advocacy organization Global Financial Integrity GFI.
“This report should be a wake up call to world leaders that more must be done to address these harmful outflows.”
Entitled “Illicit Financial Flows from Developing Countries over the Decade Ending 2009″, the report tracks the amount of illegal capital flowing out of 157 developing countries from 2000 to 2009.
According to the report, the 20 biggest victims of illicit financial flows over the decade are: China $2.74 trillion, Mexico $504 billion, Russia $501 billion, Saudi Arabia $380 billion, Malaysia $350 billion, United Arab Emirates $296 billion, Kuwait $271 billion, Nigeria $182 billion, Venezuela $179 billion, Qatar $175 billion, Poland $162 billion, Indonesia $145 billion, the Philippines $142 billion, Kazakhstan $131 billion, India $128 billion, Chile $97.5 billion, Ukraine $95.8 billion, Argentina $95.8 billion, South Africa $85.5 billion and Turkey $79.1 billion.
Mukherjee told the Indian parliament that tax treaties with 60 out of 75 countries had been amended and this would enable the government track black money.
He added there were various estimates of black money available ranging from $500 billion to $1,900 billion.
(Arun Kumar can be contacted at arun.kumar@ians.in)
- Mexico lost $872 bn to illegal capital flight: Study - Jan 31, 2012
- India has fifth largest illegal outflows in Asia: study - Jan 18, 2011
- India lost 462 bln dollars through tax evasion, crime and corruption since 1948: Report - Nov 19, 2010
- India commissions study on black money - May 29, 2011
- Developing nations losing 100 bln dollars annually through trade mispricing: Report - Feb 13, 2010
- Developing nations losing 100 b dollars annually due to trade mispricing - Feb 20, 2010
- Corruption costs Egypt $6 bn annual loss - Feb 11, 2011
- India's corrupt siphoned out $125 bn in eight years: Report (Lead) - Sep 14, 2010
- Rampant corruption siphoning out funds from India - Sep 14, 2010
- Steps taken by India to tackle black money - Jan 25, 2011
- New directorate to probe financial crimes - May 30, 2011
- Direct tax code to come into force from April 2012: Pranab - Dec 07, 2011
- Largest depositors in Swiss banks are Indians: CBI chief - Feb 13, 2012
- 'Can't reveal names yet of Indians with black money abroad' (Roundup) - Jan 25, 2011
- Panel on black money holds first meeting - Jun 09, 2011
Tags: advocacy organization, black money, bn, capital outflow, developing countries, developing world, director of research, economic reforms, financial flows, financial integrity, global financial crisis, indian finance minister, last decade, money laundering laws, pranab mukherjee, raymond baker, saudi arabia, united arab emirates, wake up call, world leaders