Arab states among Africa's worst in terms of illicit capital outflows

On Mar. 26 Global Financial Integrity (GFI), a Washington, DC-based public policy think tank, released a new report on illicit financial flows in Africa. The report, which examines the period from 1970 to 2008, shows that Africa lost $854 billion in illicit financial outflows. According to GFI, that amount "is far in excess of the official development assistance going into African countries." Stemming the flood of illicit capital outflows, which are defined as the proceeds from bribery, tax evasion, theft, drugs, and human trafficking, could significantly improve prospects for development and poverty reduction. Arab states in North Africa performed especially poorly. Egypt, Algeria, and Morocco all exceeded $25 billion in illicit financial outflows. Nigeria was the only other country to exceed those levels.