GFI: Illicit Capital Flight out of India US $462 Billion
From Global Financial Integrity:
The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008,” released today from Global Financial Integrity (GFI), estimates that tax evasion, crime, and corruption have removed gross illicit assets from India worth US $462 billion.In more fine-grained detail:
"From 1948 through 2008, India lost a total of US $213 billion in illicit financial flows (or illegal capital flight). These illicit financial flows were generally the product of: tax evasion, corruption, bribery and kickbacks, and criminal activities. The present value of India’s total illicit financial flows (IFFs) is at least US $462 billion (based on the short-term U.S. Treasury bill rate as a proxy for the rate of return on assets.) India’s aggregate illicit flows are more than twice the current external debt of US $230 billion.The full report is available here.
posted by TJN at 6:54 am
1 Comments:
What is actually leaving the country in this process? Machine tools and equipment that forms part of the productive capacity of India? Pieces of paper that are recognised as claims on wealth? Electronic tokens? Strategic raw materials? Food and water?
There is confusion arising from lack of definition of the term "capital". This leads to failure to analyse what is actually happening, to understand what damage is done,and how, and to devise measures to prevent the damage.
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