We want our money back

Illicit financial outflows and political fragility as failures of global governance
14 July 2011
Article

Angry citizens want their nations’ money back and rightfully so. Banks should be curbed instead of allowed to enthusiastically facilitate the illicit outflow of money by dictators.

The overthrow of dictators in Arab countries has lifted the veil masking the massive and routine looting of their countries’ assets by these dictators and their associates. Also exposed has been the collusion of Western banks and other firms in moving monies offshore, and in channelling monies to secrecy jurisdictions offshore and in shaping rules in ways that make theft and tax evasion easy, invisible and even legal.

These global rules seriously frustrate equitable development and peacebuilding. Where states continue to lose the means to invest in public goods and thus to shore up popular legitimacy, the risks of fragility and instability rise. Hence, today's dictator- and corporation-friendly governance of global financial flows poses major obstacles to state resilience and sustainable peace. This article looks at this legalised transnational larceny and what can be done to end it.

 

Picture by Truthout.org