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Updating the Rich Countries’ Commitment to Development Index: How They Help Poorer Ones Through Curbing Illicit Financial Flows

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  • Petr Janský

Abstract

Over the recent years illicit financial flows have attracted increasing attention from researchers and policy makers because of their negative effects on poor countries. In 2013 the mostly rich countries’ OECD acknowledged illicit flows as an issue of “central importance”. Since 2003, the Center for Global Development has been publishing the Commitment to Development Index (CDI) which ranks rich countries on their policies which affect poor countries. This paper rationalizes the inclusion of indicators of policies affecting illicit financial flows in the CDI, in addition to the previously included policies of aid, trade, migration, environment, security, technology and investment. It provides a survey of existing approaches to measuring illicit financial flows, discusses possible metrics which could be included in the CDI, evaluates how such indicators might be incorporated into the CDI, and proposes changes to current CDI indicators. The qualitative indicators of the Financial Secrecy Index emerge as the best contribution to the newly renamed and updated finance component of the CDI. Copyright Springer Science+Business Media Dordrecht 2015

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  • Petr Janský, 2015. "Updating the Rich Countries’ Commitment to Development Index: How They Help Poorer Ones Through Curbing Illicit Financial Flows," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(1), pages 43-65, October.
    • Handle: RePEc:spr:soinre:v:124:y:2015:i:1:p:43-65
    DOI: 10.1007/s11205-014-0779-3
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    Cited by:

    1. Bienvenido Ortega & Jesús Sanjuán & Antonio Casquero, 2019. "Illicit Financial Flows: Another Road Block to Human Development in Low- and Middle-Income Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(3), pages 1231-1253, April.
    2. Saila Stausholm & Petr Janský & Marek Šedivý, 2022. "Illicit financial flows and country-by-country reporting in extractive industries," WIDER Working Paper Series wp-2022-76, World Institute for Development Economic Research (UNU-WIDER).
    3. Sheila Killian & Philip O'Regan & Ruth Lynch & Martin Laheen & Dionysios Karavidas, 2022. "Regulating havens: The role of hard and soft governance of tax experts in conditions of secrecy and low regulation," Regulation & Governance, John Wiley & Sons, vol. 16(3), pages 722-737, July.
    4. Ushakov Denis & Natalia Bandurina & Sergey Shkodinsky, 2017. "Country s Welfare as an Efficiency Factor in Fiscal Policy Promoting Economig Growth," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 13(2), pages 121-127.
    5. repec:mje:mjejnl:v:12:y:2017:i:2:p:121-127 is not listed on IDEAS

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