Developing nations losing 100 b dollars annually due to trade mispricing - India News and Travel Times Provides India-centric and other News and Features

Trade mispricing is being cited as a key reason for the movement of illicit money across borders than any other single phenomenon, according to a new Global Financial Integrity (GFI) report. According to the report, treasuries in developing countries lose 100 billion dollars annually through this mechanism. This roughly is comparable to the amount of Official Development Assistance (ODA) going into developing countries, claims the report. The report says that curtailing this tax loss will therefore greatly contribute to revenues available for poverty alleviation and sustainable growth in poorer countries. It says that to curtail such tax losses, developing and developed countries alike must work to curb the global shadow financial system that facilitates illicit financial flows. The GFI recently launched the G-20 Transparency Campaign, an initiative to empower citizens around the world to make their voices heard when the G-20 meets in Canada this June. There is a crucial need for greater transparency and accountability in the global financial system, the GFI said. The GFI promotes national and multilateral policies, safeguards, and agreements aimed at curtailing the cross-border flow of illegal money. In putting forward solutions, facilitating strategic partnerships, and conducting groundbreaking research, the GFI is leading the way in efforts to curtail illicit financial flows and enhance global development and security.