As per the UN, the poor are mostly hit by corruptive practices

Sep 25 2020 01:46 PM
As per the UN, the poor are mostly hit by corruptive practices

New York: There's no doubt that corruptive practices have hit the economies of poor countries a lot. A UN panel states that tax abuse, corruption and money laundering are dumping hundreds of billions of dollars from governments that could help the world’s poor. A report from the high-level panel on International Financial Accountability, Transparency and Integrity published on Thursday stated that governments can’t agree on the problem or the solution. But they're also losing an estimated $500 billion due to corporate tax avoidance from profit-sharing enterprises.

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Furthermore, the panel estimated that $7 trillion in private wealth is stored in tax haven countries, with 10% of world GDP held offshore, and that money laundering amounts to around $1.6 trillion per year or 2.7% of global GDP. “Corruption and tax avoidance are rampant, too many banks are in cahoots and too many governments are stuck in the past. We’re all being robbed, especially the world’s poor," said former Lithuanian president Dalia Grybauskaitė, a panel co-chair. She further added that trust in the finance system is necessary to tackle global difficulties including poverty, climate change and the COVID-19 pandemic.

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Grybauskaitė said, “Instead we get dithering and delay bordering on complicity." The report further stated that criminals exploited the COVID pandemic as governments relaxed controls to speed up health care and social protection. “Our weakness in tackling corruption and financial crime has been further exposed by ... COVID-19,” said former Niger prime minister Ibrahim Mayaki, a panel co-chair. “Resources to stop the spread, keep people alive and put food on tables are instead lost to corruption and abuse. The panel’s goal is to help achieve UN goals for 2030 that include ending extreme poverty, preserving the environment and achieving gender equality," he further added. 

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