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Corrupt have siphoned off $125 bn from India: Think tank
Even as India's economic growth continues, the poor continue to stay poor with rampant corruption siphoning out over $125 billion in illicit capital flight between 2000-2008, says a Washington think tank.
Even as India's economic growth continues, the poor continue to stay poor with rampant corruption siphoning out over $125 billion in illicit capital flight between 2000-2008, says a Washington think tank.
Noting that "much of the funds flowing out are generated at home within India and then sent illegally abroad," an upcoming report from Global Financial Integrity (GFI) says, “So the growth of corruption and India's underground economy contributes significantly to illicit financial flows from the country.”
"Corruption is rampant in India as it is in almost all developing countries. Both corrupt political and corporate officers manage to siphon off funds —intended to aid the people of India ...," research arm of Centre for International Policy said.
“Recent efforts in India to challenge this corrupt affront on humanity have been met with violence,” Junior GFI Economist Karly Curcio said in a blog post on the report on illicit financial flows (IFF) from India and explaining links between IFFs, poverty, corruption, and crime.
"As India develops economically and builds better infrastructure, one would think that all Indian citizens would see an increased standard of living and that the income inequality levels would fall," says the blog post following a news report about recent crimes in India against whistleblowers.
"However, the gini coefficient, which measures income inequality, has actually increased over the time period measured, 2000-2005, from 0.32 to 0.37 on a scale of 0 to 1, with 1 being the highest income inequality," Curcio wrote.
Noting that “in India ... as the economy grows, so do illicit flows,” she wrote: "This correlation exhibits the increased incentives to conduct illicit flows, because more money is flowing within the system to steal away...."
India ranks 84 out of 180 countries in Transparency International's 2009 Corruptions Perceptions Index ranking.
