Illicit Financial Flows The Economy Of Illicit Trade In West Africa

This report is a first step towards building a qualitative understanding of the way illicit or criminal activities interact with the economy, security and development of West African States.

- Foreword and acknowledgements - About the authors - Abbreviations and acronyms - Executive summary - Overview - West Africa: Regional context and susceptibility to criminal economies - Criminal economies and illicit financial flows in West Africa - Conclusions and recommendations - Research methodology

This book examines the detrimental impact of illicit financial flows on South Africa’s development, political economy, and transformation in the 21st century. Over the years, illicit financial flows have led to the systematic looting and channelling away of South African resources, yet they are rarely studied by researchers looking to explain the country’s underdevelopment and political economy. This book looks across sectors, showing that illicit financial flows cut across all the key pillars of development, frustrating the betterment of peoples’ lives in South Africa. Investigating the problem from a decolonial perspective, the book delves deep into the catastrophic impacts of illicit financial flows for people and the economy, discusses how the problem is being combatted, and ultimately suggests solutions for rebuilding social trust between people and the state. Making an important contribution to the decolonial debate, as well as to discussions of South Africa’s political economy, this book will be of interest to researchers across African studies, global development, political science, law and corruption studies.

This publication identifies the main areas of weakness and potential areas for action to combat money-laundering, tax evasion, foreign bribery, and to identify, freeze and return stolen assets.

Gerard Emmanuel Kamdem Kamga, Serges Djoyou Kamga, and Arnold Kwesiga explore a relatively new phenomenon, namely referred to as illicit financial flows, that aim to impoverish the African continent and prevent its economic development. There is a direct relationship between illicit financial flows and failed initiatives to realize the right to development on the continent. For instance, in 2016, Africa received $41 billion towards public development while $50 billion left the continent through illicit financial flows. The gap between recent economic achievements on the continent and its state of generalized underdevelopment coupled with rampant poverty, corruption, prolonged economic crisis, and political instabilities signals an issue with resource allocations. The systematic theft of resources by multinational corporations and criminal networks is a hard blow to the idea of people-driven development in line with the Pan African vision of “an integrated, prosperous and peaceful Africa” proclaimed by Agenda 2063. Right to Development and Illicit Financial Flows from Africa: Dynamics, Perspectives, and Prospects provides insights into the dynamics and perspectives on illicit financial flows and its dire impacts on the right to development and development initiatives across the continent.

The book explores the evolving economics of gold as a global commodity as well as the production and trade of gold in and from the African continent. The growth of gold as an increasingly important and diverse source of African wealth is examined, alongside the impact that the rise of China in the 21st century has had on the demand for gold. The volatility of the gold price has increased as a result of the dramatic decline of gold demand for manufacturing purposes. Gold is Africa’s second largest export after oil and is a perfect metaphor for a continent rich in resources while so much of its population lives in such dire poverty. The artisanal and small scale gold mining (ASGM) sector, is surprisingly widely perceived as being beneficial to the development of Africa despite its exploitation and dreadful health and environmental consequences. African Gold: Production, Trade and Economic Development considers policy issues regarding the gold mining sector, the economics of beneficiation, the retreat of jewelry manufacturing across the continent as well as ‘Africa’s golden future’. It is a relevant book for both academics and policymakers interested in Africa, natural resource, and development economics.

Why are carefully designed, sensible policies too often not adopted or implemented? When they are, why do they often fail to generate development outcomes such as security, growth, and equity? And why do some bad policies endure? World Development Report 2017: Governance and the Law addresses these fundamental questions, which are at the heart of development. Policy making and policy implementation do not occur in a vacuum. Rather, they take place in complex political and social settings, in which individuals and groups with unequal power interact within changing rules as they pursue conflicting interests. The process of these interactions is what this Report calls governance, and the space in which these interactions take place, the policy arena. The capacity of actors to commit and their willingness to cooperate and coordinate to achieve socially desirable goals are what matter for effectiveness. However, who bargains, who is excluded, and what barriers block entry to the policy arena determine the selection and implementation of policies and, consequently, their impact on development outcomes. Exclusion, capture, and clientelism are manifestations of power asymmetries that lead to failures to achieve security, growth, and equity. The distribution of power in society is partly determined by history. Yet, there is room for positive change. This Report reveals that governance can mitigate, even overcome, power asymmetries to bring about more effective policy interventions that achieve sustainable improvements in security, growth, and equity. This happens by shifting the incentives of those with power, reshaping their preferences in favor of good outcomes, and taking into account the interests of previously excluded participants. These changes can come about through bargains among elites and greater citizen engagement, as well as by international actors supporting rules that strengthen coalitions for reform.