Curbing Illicit Financial Flows from Resource-rich Developing Countries
Achieving the Sustainable Development Goals (SDGs) by 2030 requires developing countries to mobilize greater domestic resources to finance and implement the Goals. A promising avenue to strengthen their tax base is to effectively reduce illicit financial flows (IFFs). Yet, there is a significant lack of rigorous scientific studies on IFFs.
The project seeks to improve our understanding of commodity trade-related IFFs, and to design and promote ways to effectively address this under-researched phenomenon both from a scientific and policy perspective. The project addresses the following research questions:
- How to complement existing data and strengthen methodological approaches to get precise IFF estimates?
- What are the main incentives and regulatory issues involved in trade-related IFFs?
- What are the roles, responsibilities and capacities of key stakeholders along the value chain to effectively curb IFFs?
- What are the most promising policy responses and what kind of cooperation frameworks should be strengthened or established at the national, regional and global levels to effectively address commodity trade-related IFFs?
Phase one of the project (2017 – 2020) will create an analytical framework applied to two resource-rich developing countries (Ghana and Laos) in relation to two of the world’s largest commodity trading hubs (Geneva/Switzerland and London/UK). In a second phase (2020 – 2023), this research will expand to other contexts: two upper-middle income countries (Peru and South Africa), a post-conflict country (Sierra Leone), and regional grouping (ASEAN).
Contact: Fritz Brugger
Partners:Graduate Institute of International and Development Studies, Geneva; Centre for Development and Environment (CDE), University of Bern; University of Ghana, Accra; National Economic Research Institute, Ventiane, Laos