{"id":30530,"date":"2012-12-18T11:56:49","date_gmt":"2012-12-18T09:56:49","guid":{"rendered":"http:\/\/www.nationalturk.com\/en\/?p=30530"},"modified":"2012-12-18T11:56:49","modified_gmt":"2012-12-18T09:56:49","slug":"india-loses-123-billion-in-black-money-in-10-yrs-report-30530","status":"publish","type":"post","link":"https:\/\/www.nationalturk.com\/en\/india-loses-123-billion-in-black-money-in-10-yrs-report-30530\/","title":{"rendered":"India loses $ 123 billion in black money in 10 yrs: Report"},"content":{"rendered":"
\"India
India lost US $ 123 billion in black money in 10 yrs<\/figcaption><\/figure>\n

Indian economy suffered US $1.6 billion in illicit financial outflows in 2010, capping-off a decade in which India experienced black money loses worth \u00a0US $123 billion.<\/h1>\n

New Delhi, Dec 18\/Nationalturk -: According to a report by Global Financial Integrity (GFI), a Washington-based research and advocacy organization, Indian economy suffered US $1.6 billion in illicit financial outflows in 2010, capping-off a decade in which the world\u2019s largest democracy experienced black money loses of US$123 billion.<\/p>\n

The GFI study, titled \u201cIllicit Financial Flows from Developing Countries: 2001-2010,\u201d ranks India as the decade\u2019s 8th largest victim of illicit capital flight behind China, Mexico, Malaysia, Saudi Arabia, Russia, Philippines and Nigeria.<\/p>\n

\u201cWhile progress has been made in recent years, India continues to lose large amount of wealth in illicit financial outflows,\u201d said GFI Director Raymond Baker.<\/p>\n

Co-authored by Dr. Dev Kar, GFI Lead Economist and GFI Economist Sarah Freitas, the study is GFI\u2019s annual update on the amount of money flowing out of developing economies through crime, corruption and tax evasion, and it is the first of GFI\u2019s reports to include data for the year 2010.<\/p>\n

Dr Kar said $123 billion is a massive amount of money for the Indian economy to lose.\u00a0 \u201cIt has very real consequences for Indian citizens.\u00a0 This is more than $100 billion dollars which could have been used to invest in education, healthcare, and upgrade the nation\u2019s infrastructure.\u00a0 Perhaps last summer\u2019s electrical blackout would have been avoided if some of this money had remained in India and been used to invest in the nation\u2019s power grid.\u201d<\/p>\n

The report\u2014the first by GFI to incorporate a new, more conservative, estimate of illicit financial flows\u2014found that all developing and emerging economies suffered US$858.8 billion in illicit outflows in 2010, just below the all-time high of US$871.3 billion set in 2008\u2014the year preceding the global financial crisis.<\/p>\n

\u201cAstronomical sums of dirty money continue to flow out of the developing world and into offshore tax havens and developed country banks.\u00a0 Regardless of the methodology, it\u2019s clear: developing economies are hemorrhaging more and more money at a time when rich and poor nations alike are struggling to spur economic growth. This report should be a wake-up call to world leaders that more must be done to address these harmful outflows,\u201d said GFI Director.<\/p>\n

GFI advocated that world leaders increase the transparency in the international financial system as a means to curtail the illicit flow of money highlighted by Kar and Freitas’ research.<\/p>\n

Findings<\/h2>\n

The US$858.8 billion of illicit outflows lost to all developing countries in 2010 is a significant uptick from 2009, which saw developing nations lose US$776.0 billion under the new methodology.\u00a0 The study estimates the developing world lost a total of US$5.86 trillion over the decade spanning 2001 through 2010.1<\/p>\n

\u201cThis has enormous ramifications for the developing world. Poor countries lost nearly a trillion dollars that could have been used to develop economically, a trillion dollars that could have been used to pull people out of poverty and save lives,\u201d said Freitas, a co-author of the report.<\/p>\n

Dr. Kar and Freitas\u2019 research tracks the amount of illegal capital flowing out of 150 different developing countries over the 10-year period from 2001 through 2010, and it ranks the countries by magnitude of illicit outflows.<\/p>\n

Methodology<\/h3>\n

As developing countries begin to loosen capital controls, the possibility exists that the methodology utilized in previous GFI reports\u2014known as the World Bank Residual Plus Trade Mispricing method\u2014could increasingly pick-up some licit capital flows.\u00a0 The methodology introduced in this report\u2014 the Hot Money Narrow Plus Trade Mispricing method\u2014ensures that all flow estimates are strictly illicit moving forward, but may omit some illicit financial flows detected in the previous methodology.<\/p>\n

\u201cThe estimates provided by either methodology are still likely to be extremely conservative as they do not include trade mispricing in services, same-invoice trade mispricing, hawala transactions, and dealings conducted in bulk cash,\u201d explained Dr. Kar, who previously served as a senior economist at the International Monetary Fund.<\/p>\n

He said this means that much of the proceeds of drug trafficking, human smuggling, and other criminal activities, which are often settled in cash, are not included in these estimates.\u201d<\/p>\n

 <\/p>\n

Write your comments and thoughts below<\/em><\/p>\n

Faiz Ahmad \/ NationalTurk Pakistan News<\/strong><\/p>\n

 <\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Indian economy suffered US $1.6 billion in illicit financial outflows in 2010, capping-off a decade in which India experienced black money loses worth US $123 billion.<\/p>\n","protected":false},"author":732,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30,80,63,51,1,85,14],"tags":[14066,41390,41389,2381,15079,2277,41397,41393,41394,41395,41388,13631,41387,18139,41391,6539,2058,3144,599,41398,3469,40772,41392],"class_list":["post-30530","post","type-post","status-publish","format-standard","hentry","category-asia","category-breaking-news","category-daily","category-economy","category-general","category-media-news","category-world","tag-billion","tag-black-money","tag-capping-off","tag-china","tag-corruption","tag-developing-countries","tag-dr-dev-kar","tag-gfi","tag-global-financial-integrity","tag-illicit-financial-flows","tag-illicit-financial-outflows","tag-indian","tag-indian-business","tag-indian-economy","tag-loses","tag-malaysia","tag-mexico","tag-philippines","tag-russia","tag-sarah-freitas","tag-saudi-arabia","tag-tax-evasion","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/www.nationalturk.com\/en\/wp-json\/wp\/v2\/posts\/30530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationalturk.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationalturk.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationalturk.com\/en\/wp-json\/wp\/v2\/users\/732"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationalturk.com\/en\/wp-json\/wp\/v2\/comments?post=30530"}],"version-history":[{"count":0,"href":"https:\/\/www.nationalturk.com\/en\/wp-json\/wp\/v2\/posts\/30530\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.nationalturk.com\/en\/wp-json\/wp\/v2\/media?parent=30530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationalturk.com\/en\/wp-json\/wp\/v2\/categories?post=30530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationalturk.com\/en\/wp-json\/wp\/v2\/tags?post=30530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}