Ideas to Action:

Independent research for global prosperity

CGD Policy Blogs

Topic

 

Financial Secrecy and the Commitment to Development Index

Many people cite corruption as the biggest obstacle to development, but corruption has many faces.  Viewed primarily as a poor country problem, corruption can be the basis for arguing against aid, on the grounds that it will be stolen or wasted. Seeing the global nature of corruption in practice, however, reveals the responsibility of aid donors and other rich countries to address their own culpability. Turns out that rich country financial secrecy can facilitate illicit transfers and even make possible grand corruption, to the tune of billions of dollars.