Illicit fund flows
As per the latest Global Financial Integrity report, Bangladesh has lost between USD 6 to 9 billion to illicit financial outflows in 2014. This is roughly enough to build three Padma bridges. The loss of USD 75 billion between 2005 and 2014 would cover the entire fiscal budget for Bangladesh twice.
It is extremely disheartening to witness these events at a time when there is little foreign direct investment, with the wealthy transferring their capital out of the country instead of investing in Bangladesh. Bangladesh is enjoying the extra benefits of population dividend or population bonus, i.e. when working age (15-64) population is much more than dependent population (0-14 &64+). Of our 10 crore (60 percent) working age population, 25 percent are unemployed, and 2 million youth are entering the job market every year. There aren’t enough jobs to meet this demand. Under the circumstances, Bangladesh needs huge investment that can in turn create new jobs.
The situation calls for an international law by the UN against illicit capital transfers, which would hold tax haven countries responsible. In addition, anti-money laundering laws must be strengthened in their enforcement. Finally, anonymous shell companies must be eliminated so as to curtail trade misinvoicing, and enhance transparency.
Juel Rana
Dhaka
