Some of the biggest developing economies in the world that include China, India and Russia are also the most corrupt, a new report by Global Financial Integrity (GFI), an international corruption watchdog showed.
The report, titled "Illicit Financial Flows from Developing Countries: 2003-2012", showed that some of the biggest developing economies were the largest contributors to corruption, tax evasion and other money-laundering activities.
The developing world lost more than worth $6.6 trillion over the period of 2003 to 2012 due to the illicit financial flows.
"Emerging and developing countries haemorrhaged a trillion dollars from their economies in 2012 that could have been invested in local businesses, healthcare, education, or infrastructure," Joseph Spanjers, economist and co-author of the study told The Rakyat Post.
"This is a trillion dollars that could have contributed to inclusive economic growth, legitimate private-sector job creation and sound public budgets."
The report explains that the countries usually launder money through "export under-invoicing and import over-invoicing"
"...corrupt government officials, criminals and commercial tax evaders are able to easily move assets out of countries and into tax havens, anonymous companies and secret bank accounts" in these countries, the report underscores.
The report also found that the outflow of illegal money was increasing by 9.4 percent every year. Dev Kar, the other author of the report added that it was "troubling" to note the rapid pace of illicit financial flow, which is affecting the share of GDP of poorer countries around the world.
Most of the illicit money outflow came from Asia as it represented 40 percent of the total illegal financial flows.
Below are the top 10 countries most corrupt countries with the amount they :
- China - $125.24 Billion
- Russia - $97.38 Billion
- Mexico - $51.42 Billion
- India - $43.95 Billion
- Malaysia - $39.48 Billion
- Saudi Arabia - $30.86 Billion
- Brazil - $21.71 Billion
- Indonesia - $18.78 Billion
- Thailand - $17.16 Billion
- Nigeria - $15.74 Billion
Financial crime in the world has become a mounting concern. Even at the recent G20 Summit, the members met and resolved to tackle the issue by putting in place some stringent rules and regulations.
Experts note that with the current state of world corruption, economic growth and sustainability is difficult.
"It is simply impossible to achieve sustainable global development unless world leaders agree to address this issue head-on. That's why it is essential for the United Nations to include a specific target next year to halve all trade-related illicit flows by 2030 as part of its post-2015 Sustainable Development Agenda," Raymond Baker, president of Global Financial Integrity, in a public statement on Monday.