{
  "title": "Illuminating Dark Corners of the Global Economy",
  "publication": "IMF Blog, September 3, 2019",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2019/09/03/illuminating-dark-corners-of-the-global-economy",
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  "summary": "Author: Gita Bhatt",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Author: Gita Bhatt\n- Publication date: September 3, 2019\n- Context: Issue of Finance & Development focused on secret transactions enabling tax evasion and avoidance, money laundering, illicit financial flows, and corruption.\n- Framing: Uses a Sufi parable to illustrate tendency to search where it is easiest to look and argues for shining a spotlight on hidden financial activity."
    },
    {
      "heading": "Scale of the problem (key statistics and impacts)",
      "content": "- Bribes: \"$1.5–$2 trillion\" change hands every year.\n- Tax evasion: \"more than $3 trillion a year\" lost by governments.\n- Broader losses: \"countless more is lost through other illicit activities.\"\n- Social and economic costs:\n  - Money lost could fund health care, education, and infrastructure for millions worldwide.\n  - Corruption \"distorts incentives and undermines public trust in institutions.\"\n  - Corruption identified as \"the root of many economic injustices young women and men also suffer every day.\""
    },
    {
      "heading": "Proposed responses and governance themes",
      "content": "- Core notion: \"The best disinfectant is sunlight.\"\n- Institutional and policy measures discussed by contributors:\n  - Put in place accountable institutions.\n  - Improve government budget transparency.\n  - Exchange financial information across borders.\n  - Resolve the tension between the need for transparency and the right to privacy.\n  - Curb evasion by low-tax rate locations, noting they \"have a stake in curbing evasion.\"\n  - Promote closer cooperation among law enforcement, financial institutions, and regulators."
    },
    {
      "heading": "Cross-border collaboration and collective action",
      "content": "- Problem characterization: Hidden transactions are \"not one nation’s problem nor within one nation’s power to resolve.\"\n- Recommended approach: Combine strong domestic policies with cross-border collaboration.\n- Expected payoff: \"Myriad other political, economic, and social benefits, not least reducing inequality.\""
    },
    {
      "heading": "Concluding message",
      "content": "- Rationale: Shedding light on secret financial activity can reduce corruption, recover resources for public services, and strengthen public trust.\n- Editorial note: Message signed \"Editor-In-Chief, Finance & Development.\"\n- Call to action: Emphasizes the need to \"shed light on the dark corners of the world economy.\"\n\nSource: IMFBlog post \"Illuminating Dark Corners of the Global Economy\" by Gita Bhatt, September 3, 2019.\n\n---\n\n\n References\n\n- Gita Bhatt\n- Finance & Development\n- tax evasion and avoidance\n- core notion of governance\n- combat graft\n- ways to resolve the tension\n- curbing evasion\n- closer cooperation\n\nSource: https://www.imf.org/en/blogs/articles/2019/09/03/illuminating-dark-corners-of-the-global-economy"
    }
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    "Authors: Getty Images)Credit (photo: iStock by Getty Images)CorruptionIlluminating Dark Corners of the Global EconomySeptember 3",
    "Published: September 3, 2019",
    "Author: Gita Bhatt",
    "Publication date: September 3, 2019",
    "Context: Issue of Finance & Development focused on secret transactions enabling tax evasion and avoidance, money laundering, illicit financial flows, and corruption.",
    "Framing: Uses a Sufi parable to illustrate tendency to search where it is easiest to look and argues for shining a spotlight on hidden financial activity.",
    "Bribes: \"$1.5–$2 trillion\" change hands every year.",
    "Tax evasion: \"more than $3 trillion a year\" lost by governments.",
    "Broader losses: \"countless more is lost through other illicit activities.\"",
    "Social and economic costs:",
    "Core notion: \"The best disinfectant is sunlight.\"",
    "Institutional and policy measures discussed by contributors:",
    "Problem characterization: Hidden transactions are \"not one nation’s problem nor within one nation’s power to resolve.\"",
    "Recommended approach: Combine strong domestic policies with cross-border collaboration.",
    "Expected payoff: \"Myriad other political, economic, and social benefits, not least reducing inequality.\"",
    "Rationale: Shedding light on secret financial activity can reduce corruption, recover resources for public services, and strengthen public trust.",
    "Editorial note: Message signed \"Editor-In-Chief, Finance & Development.\"",
    "Call to action: Emphasizes the need to \"shed light on the dark corners of the world economy.\"",
    "[Gita Bhatt](https://blogs.imf.org/bloggers/gita-bhatt/)",
    "[Finance & Development](https://www.imf.org/external/pubs/ft/fandd/2019/09/index.htm)",
    "[tax evasion and avoidance](https://www.imf.org/external/pubs/ft/fandd/2019/09/the-rise-of-phantom-FDI-in-tax-havens-damgaard.htm)",
    "[core notion of governance](https://www.imf.org/external/pubs/ft/fandd/2019/09/dark-side-of-the-global-economy-lipton.htm)",
    "[combat graft](https://www.imf.org/external/pubs/ft/fandd/2019/09/the-true-cost-of-global-corruption-mauro.htm)",
    "[ways to resolve the tension](https://www.imf.org/external/pubs/ft/fandd/2019/09/illicit-financial-flows-and-privacy-vs-transparency-purcell.htm)",
    "[curbing evasion](https://www.imf.org/external/pubs/ft/fandd/2019/09/tackling-global-tax-havens-shaxon.htm)",
    "[closer cooperation](https://www.imf.org/external/pubs/ft/fandd/2019/09/the-truth-about-the-dark-web-kumar.htm)"
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