Illicit Financial Flows: Perspectives from Developing Asian Countries
Illicit Financial flows undermine the socio-political and economic stability of a country. Moreover, they erode a country’s tax base and are especially detrimental towards developing countries which most crucially need financing for development. Therefore, taxes, as an effective tool for domestic revenue collection and redistribution of resources, have figured high on the development agenda for developing countries to finance their development and in moving away from their dependence on foreign aid.
This policy brief delves in the modalities of illicit financial flows, tax injustice and their impact on domestic mobilisation of resources in five specific developing Asian country contexts: Afghanistan, Bangladesh, China, India and the Philippines. It further sheds light on how issues pertaining to taxation and financial transparency vary regionally and discusses policy recommendations specific to those countries.
The current international institutional architecture on taxation is skewed in favour of rich, developed countries and has unfairly allocated taxation rights towards developing countries. The brief comments on setting a political regional and global agenda on tax matters in the context of Asia- Pacific.