By Zayda Manatta, Head of the Secretariat of the Global Forum on Transparency and Exchange of Information for Tax Purposes
One small change can make a big difference in the fight against illicit financial flows.
Illicit financial flows (IFFs) deprive developing countries and regions of much-needed resources to finance and achieve their development agendas (e.g. the African Union’s Agenda 2063) and the global Sustainable Development Goals. They prevent countries from raising legitimate revenues essential for financing basic services such as social, educational and healthcare systems, and spurring economic development.
The ongoing COVID-19 pandemic has underlined how vital it is for countries to have well-financed medical infrastructure and efficient healthcare systems. The economic crisis resulting from the health crisis is undermining public finances the world over. While preserving a business climate favourable to economic recovery, long-term post-crisis strategies will likely have to encompass increased domestic revenues. Improving domestic resource mobilisation and advancing the fight against illicit financial flows needs to be at the forefront of developing countries’ political agendas. Continue reading