scholarly journals Recharacterizing Corruption to Encompass Illicit Financial Flows

AJIL Unbound ◽  
2019 ◽  
Vol 113 ◽  
pp. 336-340 ◽  
Author(s):  
James Thuo Gathii
Keyword(s):  
Multinational Corporations ◽  
Transfer Pricing ◽  
Public Officials ◽  
Financial Flows ◽  
Development Agenda ◽  
Role Of The State ◽  
Illicit Financial Flows ◽  
Definition Of ◽  
Private Actors

Anticorruption treaties generally define corruption as the abuse of entrusted power for private gain. As such, global anticorruption efforts primarily target transactions involving the bribery of governmental officials. The definition excludes transactions in which multinational corporations deprive developing states of revenue by failing to pay taxes and other monies due. Yet such transactions are equally injurious to the development agenda of poor states. This essay argues that corruption should be redefined to encompass illicit financial flows, a term used by a growing network of tax and economic justice groups to refer to money that is “illegally earned, transferred or used.” Transactions such as trade misinvoicing, base-erosion, and abusive transfer pricing to illegally earn additional income undermine the ability of poor states to raise revenue for development. Expanding the definition of corruption would create a more realistic picture of the role of corporate actors and their involvement in corrupt and illicit dealings. It would also bring equivalency to the treatment of corporate actors and public officials. By focusing on illicit dealings involving corporate actors, this essay challenges the partial definition of corruption adopted in the heyday of the Washington Consensus, when skepticism about the role of the state, rather than of private actors, prevailed.

scholarly journals History and overview of ‘IFF’

2020 ◽  
pp. 7-24
Author(s):  
Alex Cobham ◽  
Petr Janský
Keyword(s):  
Financial Flows ◽  
History Of ◽  
Development Goals ◽  
Illicit Financial Flows ◽  
Definition Of ◽  
Lower Income Countries ◽  
Financial Secrecy ◽  
Political Priority

This chapter provides a history of the rise of the term ‘illicit financial flows’ (IFF), and the emergence since 2000 of a global tax justice movement. As a broad umbrella term, the phrase was useful in ensuring the political consensus behind the establishment of a target to curtail IFF in the UN Sustainable Development Goals. But that consensus has hidden, to some extent, disagreements over the relative priorities—from the old view of corruption as a problem predominantly of lower-income countries, to the more recent recognition of the central role of typically high-income financial secrecy jurisdictions. Disagreements over political priority have played out as disputes over the definition of IFF, and over the quality of estimates of scale. This chapter provides a comprehensive typology of IFF, and summarises the evidence on the importance of the phenomenon for human development.

scholarly journals Illicit financial flows and foreign direct investment in developing countries

2016 ◽  
Vol 6 (4) ◽  
pp. 442-447
Author(s):  
Emmanuel Innocents Edoun ◽  
Alexandre Essome Dipita ◽  
Dikgang Motsepe
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Tax Evasion ◽  
Local Governments ◽  
Direct Investment ◽  
Good Governance ◽  
Transfer Pricing ◽  
Developed Countries ◽  
Financial Flows ◽  
Illicit Financial Flows

Africa is facing a number of challenges that are negatively affecting socio-economic development at all levels of governments and local governments are expected to play a leading role for Africa’s development. One of these challenges are illicit financial flows that are perceived by many as a crime against Africa’s transformation. The continent is losing billions of dollars every year because of tax evasion, corruption and inappropriate transfer pricing and maladministration. With tax being one of Africa’s main sources of revenue, current and past researches revealed that, illicit financial flows (IFFs) cripple African Governments tax base as a results of capital outflows and lack of good governance. This situation obviously is a challenge for Africa’s development as governments struggle to finance structuring projects and this in turn compels these governments to seek funds from international organisations at very high interest rates. It is also important to reveal that Foreign Direct Investment (FDI) rapidly grew after the Second World War with the intention to maximize profit on investment in less developed countries and specifically in the African continent. In competing in Africa, most multinationals main objective is to pay less tax, make extensive profits and transfer the proceeds to their country of origin. This subsequently gave rise to illicit financial flows in Africa where the continent is losing billions of dollars. Past studies equally revealed that, Africa’s revenue could increase between 55 and 65%, if appropriate mechanisms of monitoring the flows were in place. This study therefore is based on the premise that, tax evasion, illicit financial flows, corruption and abusive transfers pricing are all factors that affect Africa’s development. Using appropriate method of inquiry, this study wants to demonstrate the presence of FDI’s in Africa as a modus operandi behind tax evasion. It also using the “Appropriability Theory” to explain the rationale for FDI in Africa.

scholarly journals Remedies to Illicit Financial Flows from Transfer Pricing of Services and Hosting Intellectual Property in Kenya

2017 ◽  
Vol 3 (1) ◽  
pp. 113-130
Author(s):  
Charles Gordema
Keyword(s):  
Transfer Pricing ◽  
Primary Concern ◽  
Financial Flows ◽  
Taxable Income ◽  
Global Corporation ◽  
Intellectual Assets ◽  
Global Corporations ◽  
Illicit Financial Flows ◽  
The Impact ◽  
Pricing Of Services

Numerous reports in the last decade have focused on the challenges to African economies that emanate from the illicit transfers of funds and other valuable assets within some global corporations. A primary concern is the impact of these transfers on the taxable income of African subsidiaries. Two broad categories of intra-group transfers are of particular interest, partly because of the complexities they raise. One comprises transfers in payment of services exchanged among associated enterprises, while the other pertains to transfers by subsidiaries in payment of the value of intellectual assets attributed to the corporate centre of the global corporation. This article highlights the challenges raised by these transfers through case studies. It examines possible mechanisms to mitigate the challenges, drawing attention to current and impending developments. It concludes that there are good prospects for curbing illicit transfers linked to the examined types of transactions.

scholarly journals La théorie autrichienne de la bureaucratie de Mises: une perspective critique

2021 ◽  
pp. 95-137
Author(s):  
Laurent Carnis
Keyword(s):  
Jel Classification ◽  
Market Process ◽  
Political Systems ◽  
Economic Calculation ◽  
Role Of The State ◽  
Théorie Économique ◽  
Definition Of ◽  
Traditional Approaches ◽  
Premiere Partie

The bureaucratic organisations became key actors in our contemporary societies. To develop an appropriate theory to understand how these organisations work and their implications constitute true stakes. This article deals with Mises’ theory of bureaucracy, which differs radically from the traditional approaches. The first part presents the definition of the Misesian bureaucracy, which shares some common points with Wéber’s version and shows also true strong disagreements. The absence of economic calculation constitutes the main key idea to understand the Misesian theory. Mises shows also that bureaucracy reflects the governmental interventions, which can be combined with different types of political systems. The second part deals with the consequences of bureaucracy. This part proposes a detailed analysis of the economic, social, political and psychological effects. The third part raises some critical points for the theory. It seems that the conception of bureaucrat and its place inside the bureaucratic organisation is not sufficiently analysed. Moreover, the modelling of the bureaucratic expansion deserves a more refined research. Finally, the justifications given by Mises to justify a minimal bureaucracy emphasize the necessity to think the place and the role of the State. Keywords: Bureaucracy, economic calculation, market process, minimal government. JEL Classification: D73 H11 L38 P11 P21. Résumé: Compte tenu de place importante que prend désormais l’organisation étatique au sein des sociétés contemporaines, l’élaboration d’une théorie économique de la bureaucratie s’avère essentielle pour en comprendre à la fois les mécanismes de fonctionnement et les implications. Cet article revient sur la contribution de Mises, qui par ses travaux, permet d’offrir une réelle alternative aux approches traditionnelles.La première partie de cette contribution présente la théorie de Mises en soulignant ses spécificités par rapport à la conception défendue par Wéber, dont à la fois elle s’inspire et s’en écarte substantiellement. L’absence du calcul économique dans le processus d’allocation des ressources représente une dimension essentielle pour comprendre la théorie proposée. Mises démontre également que l’organisation bureaucratique s’accommode aisément des différents régimes politiques et reflète l’intervention généralisée de l’Etat. La deuxième partie concerne les conséquences de la bureaucratie. Mises distingue quatre effets: les effets économiques, sociaux, politiques et psychologiques. Chaque catégorie fait l’objet d’une présentation détaillée. La troisième partie soulève des points critiques du modèle de la bureaucratie de Mises. Ainsi, sa conception du bureaucrate et sa place au sein de l’organisation bureaucratique nous paraissent faire l’objet d’une élaboration insuffisante. Les mécanismes de l’expansion bureaucratique méritent également un raffinement de l’analyse, tandis que la justification avancée d’une bureaucratie minimale soulève la question de l’existence d’un Etat minimal. Mots clés: Bureaucratie, calcul économique, processus de marché, Etat minimal.

scholarly journals MACROECONOMIC TOOLS FOR ENSURING RESILIENCE OF THE FINANCIAL CORPORATIONS SECTOR

2020 ◽  
Vol 1 ◽  
pp. 16-22
Author(s):  
Diana Shkuropadska
Keyword(s):  
The State ◽  
Normal Functioning ◽  
Innovation Development ◽  
Role Of The State ◽  
System Method ◽  
Compensation Mechanisms ◽  
Theoretical Generalization ◽  
Definition Of ◽  
International Audit

Research the tools for ensuring resilience of the financial corporations sector is relevant, given the fact that the development of the world economy is increasingly subject to the shock influences, to which financial crises are imposed. The aim of the article is to identify and justify macroeconomic tools according to the directions for ensuring resilience of the financial corporations sector. The theoretical-methodological base of the article is scientific works of scientists and reports of international organizationsfor directions and tools for ensuring resilience of the financial corporations sector and the economy in general. The general approaches and research methods have been used at preparing the article: theoretical generalization, analysis, synthesis and system method. The use of these methods allowed to consider approaches of leading international audit companies to understand the concept “resilience of the financial corporations”. On this basis, there was suggested the author's definition of the concept “resilience of the financial corporations sector” and defined it essential characteristics. It was explained, that the process of ensuring resilience of the financial corporations sector involves the implementation of macroeconomic tools in accordance with the following areas: the introduction of economic stimulus packages, attractive lending conditions, tax and investment benefits, promoting innovation, development of compensation mechanisms, international financial support. The important attention in the study was paid to the role of the state in the process of implementing macroeconomic tools for ensuring resilience of the financial corporations sector. Attention is focused on the fact, that under shock influences the state should implement macroeconomic tools in line with current problems in the development of the financial corporations sector. This in turn will ensure its profitability at a level sufficient for normal functioning.

Nation Branding

2020 ◽  
pp. 57-73
Author(s):  
Héctor Fernández L’Hoeste
Keyword(s):  
The State ◽  
Nation Branding ◽  
Business Managers ◽  
Imagined Community ◽  
Social Sciences And Humanities ◽  
Role Of The State ◽  
The Social ◽  
Definition Of ◽  
Political Technology

This chapter proposes the practice of nation branding as a political technology, as an example of neoliberalism in which the definition of national identity, previously assessed primarily by the social sciences and humanities, becomes the domain of business managers and advertising executives, thanks to technologies associated with social media. It explains how the redefinition of social goods, the role of the state, and the role of experts entail the replacement of a more socially driven understanding of identity with an act of commercial prestidigitation by way of nation branding; the pertinent state entities are replaced by advertising and image consultancy firms; and, lastly, scholars of various disciplines are replaced by advertising and PR executives. In short, following neoliberalism, identity is reinterpreted as brand. Identity no longer results from the never-ending and instantaneous negotiation between a multiplicity of parties, representative of myriad aspects relevant to the configuration of individuals and communities, but is rendered instead as the quantifiable, concrete result of a variety of transactions. Through this reformulation, a new relationship is suggested between the idea of nation as imagined community and the reality of the state as a material expression of the concept of nation.

The Warming Business Climate in Africa

2015 ◽  
Vol 114 (772) ◽  
pp. 163-169
Author(s):  
Scott Taylor
Keyword(s):  
Private Sector ◽  
Economic Life ◽  
Business Climate ◽  
Public Officials ◽  
Private Actors

With a spate of new activity and progress, perceptions of business and the role of the private sector in economic life have shifted markedly among donors, investors, and African public officials and private actors.

scholarly journals Pemikiran Bela Negara Dan Hubungan Internasional: Pergeseran Peran Negara Dan Implikasinya Terhadap Perkembangan Sudut Pandang Studi Ilmu Hubungan Internasional

2017 ◽  
Vol 7 (3) ◽  
Author(s):  
Syahrul Salam, Adi Rio Arianto, Rizky Hikmawan
Keyword(s):  
International Relations ◽  
Multinational Corporations ◽  
The State ◽  
Minor Role ◽  
Global Era ◽  
Non Governmental Organizations ◽  
Role Of The State ◽  
The University ◽  
State Defense

<p><strong>Abstrak – </strong>Kemajuan teknologi, khususnya dibidang informasi, transportasi, dan sains, telah<strong> </strong>menciptakan evolusi peran negara sebagai aktor Hubungan Internasional (HI). Negara harus berbagi peran dengan aktor HI lainnya, seperti: organisasi internasional (OI), organisasi pemerintah/ non-pemerintah (IGOs/NGOs), kelompok epistemik, perusahaan multinasional (MNCs), dan individu. Pergeseran peran negara dalam usaha membela negara mengubah warna disiplin ilmu HI, yaitu pendekatannya. Kajian ini mendalami pergeseran peran negara dan implikasinya bagi sudut pandang HI, serta mengkaji evolusi lingkungan strategis. Hasil studi menemukan bahwa selain negara, universitas adalah salah satu calon aktor HI. Hal ini diidentifikasi melalui empat aspek berikut, yaitu: (1) aspek bela negara menuntut peran sentral (mayor) dan peran sektoral (minor) negara sebagai subyek HI dimana negara berbagi peran dengan Universitas, (2) aspek bela negara mempengaruhi pendekatan Realisme dengan perilaku anarkisnya bergeser ke pendekatan alternatif: Horizontalisme dengan perilaku gotong-royongnya, (3) aspek bela negara menuntut perubahan lingkungan strategis dari Era Global (Globalisasi) ke Era Horizontal (Horizontalisasi) atau dengan istilah “Globalinium”, dan (4) aspek bela negara menjadi krusial saat disandingkan dengan kepentingan nasional di pentas Internasional.</p><p><strong>Kata Kunci : </strong>bela negara, hubungan internasional, era horizontal, globalinium, negara, universitas</p><p><strong><em>Abstract – </em></strong><em>The development of technological in the fields of information, transportation, and science,<strong> </strong>have created the evolution of the role of the state as an actor of International Relations (IRs). States should share roles with other IRs actors, such as international organizations (IO), government/ non-governmental organizations (IGOs / NGOs), epistemic groups, multinational corporations (MNCs), and individuals. The shifting role of the state in the effort to defend a state changed the color of the discipline of IRs, particularly in its approach. This study explores the shifting role of the state and its implications to IRs paradigm, and examines the evolution of the strategic environment. The results found that beside the “state”, the “university” can be one of the IRs actors. This is identified through the following four aspects: (1) the state defense aspect demands the major role and the minor role of the state as the subject of IRs in which the State shares its role with the university, (2) the state defense aspect affects the Realism approach with the anarchy shifts to alternative approaches: Horizontalism </em><em>with its “gotong-royong”, (3) the state defending aspect demands a strategic environmental change from the Global Era (Globalization) to the Horizontal Era (Horizontalization) or with the term “Globalinium”, and (4) the state defending aspect were crucial when it juxtaposed with national interests on the international stage.</em></p><p><em><strong><em>Keywords: </em></strong><em>state defending, international relations, horizontal era, globalinium, state, university</em></em></p>

scholarly journals The State-based Financial Control in Ukraine: Status and Directions for Improvement

2021 ◽  
Vol 10 (525) ◽  
pp. 336-340
Author(s):  
I. V. Yahodenko ◽  
◽  
O. D. Hordei ◽  
Keyword(s):  
The State ◽  
Current Status ◽  
Financial Control ◽  
Theoretical Understanding ◽  
Regulatory Authorities ◽  
Control Functions ◽  
Role Of The State ◽  
Definition Of ◽  
Effective Use

The article is aimed at disclosing the economic essence of the concept of «the State-based financial control», defining and analyzing the current status of the State-based financial control in Ukraine. The article analyzes the opinions of scholars on the definition of the conceptual apparatus of the research topic and derives a theoretical understanding of the State-based financial control. The issue of building an effective unified system of the State-based financial control is researched. The analysis of legislation norms on the implementation of the State-based financial control is carried out. The opinions of leading scholars who study the problems of control over the effective use of both the State and the local budgets together with reforms in this area are taken into account. The current status of the State-based financial control in the country is analyzed, a number of problems within the system are outlined. The characteristic shortcomings of functioning of the elements of the State-based control system are outlined (absence of a unified concept for the development of the State-based financial control, deepening of the powers of regulatory authorities, presence of a large number of normative legal acts, their outdatedness and inconsistency), the inadmissibility of duplication of control functions is emphasized. The role of the State-based audit in the formation of the successful State-based financial control in the country is determined. The risks that influence the formation of the State-based financial control are analyzed. It is concluded that the system of the State-based financial control in Ukraine does not have sufficient legal, informational, organizational, communicative, institutional and methodological provision that would meet the modern challenges of the country’s economy. Solving the problems of organization and functioning of the State-based financial control is possible by systematically improving the activities of financial control bodies, increasing the level of audit and continuous improvement of the management system within the organizations of regulatory authorities.

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