The critical intersection of illicit financial flows (IFF) and political economy has been highlighted by a researcher from the Department of Political Science at the University of Ghana.
Abigail Tetteh Yankey, speaking at a forum on “Curbing IFFs to Finance Development” held on Thursday, November 16, at the AH Hotel in Accra, traced the emergence of the illicit financial flows agenda back to the Global Tax Justice Movement in 2000.
He emphasized that corruption is not limited to lower-income countries and highlighted the significant impact of “commercial tax evasion”, which goes beyond the flows associated with bribery.
Political consensus to curb IFFs, as reflected in the Sustainable Development Goals (SDGs), has been highlighted as a critical global initiative to alleviate poverty and finance sustainable development.
However, Tetteh Yankey pointed to the multifaceted challenges to addressing IFFs, including the need for capacity, resources and, most importantly, political consent.
The overwhelming multiple reporting requirements, the lack of central coordination and the dilemma between international and national standards were identified as barriers to effective action.
Focusing on the gold export regime, the workshop supported the effective implementation of community mining programs and other policy measures to formalize Artisanal and Small-Scale Gold Mining (ASGM).
Strengthening tax administration, regulatory cooperation and capacity building in the use of technology for registration were suggested to enhance transparency and good governance practices in the sector.
Challenges related to the governance architecture were also highlighted.
Tetteh Yankey highlighted issues such as executive dominance, weak checks and balances, rent-seeking behavior, party loyalty overshadowing citizen loyalty, electoral monetization, insufficient resources, and poor law enforcement.
The large informal economy, fragmentation of institutional roles, absence of specific IFF laws and overly centralized policy-making were identified as structural challenges requiring urgent attention.
Fueled by Tetteh Yankey’s insights, the workshop discussions underscored the imperative for political consensus and comprehensive governance reforms to effectively curb illicit financial flows and promote sustainable development in Ghana.
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