Better Policies for Development 2014
Policy Coherence and Illicit Financial Flows
This edition of Better Policies for Development focuses on illicit financial flows
and their detrimental effects on development and growth. Every year, huge sums of
money are transferred out of developing countries illegally. The numbers are disputed,
but illicit financial flows are often cited as outstripping official development aid
and inward investment. These flows strip resources from developing countries that
could be used to finance much-needed public services, such as health care and education.
This report defines policy coherence for development as a global tool for creating
enabling environments for development in a post-2015 context. It shows that coherent
policies in OECD countries in areas such as tax evasion, anti-bribery and money laundering
can contribute to reducing illicit financial flows from developing countries. It also
provides an update on OECD efforts to develop a monitoring matrix for policy coherence
for development, based upon existing OECD indicators of ‘policy effort’. The report
also includes contributions from member states. Most illustrate national processes
to deal with policy coherence for development beyond 2015.
Published on April 28, 2014