Report: Billions lost in corruption

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Report: Billions lost in corruption

Post by Admin » Sat Sep 12, 2015 7:08 am

Almost $20 billion in dirty money linked to corruption, crime and tax evasion has left Burma in the past five decades, slashing government revenue and driving a thriving underground economy, a money-laundering watchdog said on Wednesday.

Fraudulent invoicing of trade deals and physical smuggling of drugs, timber, gems and other goods pose big challenges to Burma, which will hold its first general elections next month since the end of military rule, US-based Global Financial Integrity said in a report. Illicit financial inflows have accelerated in the past few years as the economy has opened up, and over the past five decades were four times as big as outflows, it said.

“Burma must be one of the most porous countries in the world,” GFI economist Joseph Spanjers, the report’s co-author, told the Thomson Reuters Foundation.

“It is a serious challenge for the country as tax losses due to illicit flows are robbing it of crucial public funds.”

Long isolation and trade restrictions during the nearly 50 year reign of a military government until 2011, and attempts to regulate currency exchange rates have combined to drive a substantial part of Burma’s economy underground, GFI said.

The Southeast Asian country, one of the poorest in the region, is not alone in grappling with the negative impacts of illicit financial flows. GFI estimates almost $1 trillion in dirty money leaves poor nations each year, an outflow that has grabbed the attention of anti-poverty groups and world leaders because, by cutting tax revenue needed to fund areas such as health and education, it has a corrosive impact on development.

Illicit financial flows from Burma totaled $18.7 billion from 1960 to 2013, averaging 6.5 percent of the country’s annual economic output, according to the GFI report.

In the same period, $77.7 billion of illicit money entered Burma, an inflow typical of countries where smuggling is a major part of the economy.

Total illicit financial flows were the equivalent of up to 172 percent of health expenditure and up to 73 percent of education spending, the researchers found, showing how both movements of money deprive the government of crucial tax revenue. Burmese tax collection rates are among the lowest in the world, at 7 percent of economic output.

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Re: Report: Billions lost in corruption

Post by Nyinway » Sat Sep 12, 2015 10:04 am

This is what happen when one of the richest nation in South East Asia is corrupt with the Burmese Military take over in the 1960s to 2013, a 50 years plus of greed and guns.
Well, I left Burma and still is today. Is Burmese military totally out of the woods? I don’t think so. I still see the same old propagandas in Burmese Movies and the military is still strong in the Governance of so called the Republic of the Union of Myanmar with 25% uniform military reps and puppet political party USDP taking almost all of the rest of seats in the Parliament leaving a small insignificant seats to the opposition parties combined.
As for Zinyaw, he is still focus on Roses and Romance continues from Myanmar to America.

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Re: Report: Billions lost in corruption

Post by Burmacuda » Sun Sep 13, 2015 9:47 am

The sad thing is that it looks like neighbouring Thailand is following suit, the military junta there are meddling in things to keep them in power longer. Burma may well be a democratic country before Thailand is!
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