Global Financial Integrity

 

GFI Applauds G8 Commitment to Tackle Illicit Financial Flows, Create Financial Transparency

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Monique Perry Danziger, +1 202 293 0740 ext. 222

WASHINGTON, DC – Language in the G8 Economic Declaration stating a commitment to fight “illegal financial flows,” and improve “financial transparency” is further evidence of a sea change in world-views about finance and development, said Global Financial Integrity today.

“We welcome the entrance of the term “illicit financial flow” into the popular vernacular of international development and economics,” said GFI director Raymond Baker in reaction to the G8 statement. “The term describes the billions of dollars a year that exit developing countries illicitly through crime, corruption, and tax evasion—$900 billion per year in total.”

The Economic Declaration issued by the Group of 8 on Wednesday states:

National governments have the primary responsibility for ensuring development, by engaging with their parliaments, local authorities, civil society organizations and citizens in shaping appropriate policies, mobilizing domestic resources and promoting their efficient and sustainable use.

Yet a renewed commitment to fight poverty requires increasing efforts by public and private actors, from developed countries, emerging economies and developing countries. We will continue to support partner countries’ efforts to increase domestic revenues through modernized tax and customs regulations, improved revenue collection capacities and effective fight against tax evasion, illegal financial flows and corruption. We will enhance cooperation on financial transparency and tax information exchange.