Illicit Financial Flows, Trade Mispricing, and their impact on African economies

Simon Mevel, Siope Ofa and Stephen Karingi

Chapter 10 in Regional Integration and Policy Challenges in Africa, 2015, pp 220-252 from Palgrave Macmillan

Abstract: Abstract Capital flight from developing countries has increased tremendously in the last decade. A large portion of these flows occurs via illicit means. Kar and Cartwright (2010) estimate such illicit financial flows from Africa between 1970 and 2008 to be about US$854 billion. This cumulative amount is considerable and equivalent to nearly all of the Official Development Aid (ODA) received by Africa during that 39-year period (Kar and Cartwright, 2010). From a different perspective, only one-third of the Illicit Financial Flows (IFF) would have fully covered the continent’s external debt of US$279 billion in 2008 (UNECA, 2009). Such a phenomenon takes even more importance as Africa is deepening its regional integration and critically needs to implement costly reforms to ensure the integration process is effective.

Keywords: capital flight; growth; illicit financial flows; trade mispricing (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-46208-4_11

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DOI: 10.1057/9781137462084_11

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