Unlocking a Hidden Resource of Development by Addressing the Elephant in the Room: Developing a Legal Framework to Counter Illicit Financial Flows Out of Africa

Abstract

The increasing volume of Illicit Financial Flows (IFFs) from Africa has serious implications on the continent’s development. In Chapter 1, IFFs are conceptually defined, and the reader is offered a comprehensive definition which articulates how best to address the issue. The pertinent effects on Africa indicated in Chapter 2, illustrate what is at stake and how pressing the need to find an effective solution to the problem is, not just for Africa but for developing economies in general. In Chapter 3 the most relevant and notable current global architecture is elucidated and thereafter scrutinised in Chapter 4, where arguments are made espousing how the problem has firstly been misdiagnosed and consequently inadequately treated. All IFFs are problem, but some IFFs are more problematic than others. The research question chosen in this dissertation asks whether the current global framework to tackle IFFs from Africa is sufficient. The responding argument made is that firstly, IFFs are defined inaccurately by the existing framework which, in its treatment of the phenomenon largely neglects IFFs perpetrated by Multi-National Corporations (MNCs). The Report issued by the High Level Panel on IFFs from Africa correctly sketches the extent of IFFs by MNCs, and in agreement, this dissertation prioritised this branch of IFFs. Additionally, in Chapter 4 the attention of the reader is brought to how the said imprecise existing framework has measured, whereupon the reasons for the failure are discussed. The discussion regarding the existing efforts introduces plausible doubt regarding the continuation of the current framework as it is, and in Chapter 5 that doubt is argued into conclusion whereupon the need to reform the existing approach to IFFs is identified as a priority. In accordance with that argument, the contribution towards the solution is made through the proposition of a unique institution that would tackle the scourge. The remainder of the chapter details how it would the proposed institution would be established, accounting for all relevant factors. Chapter 6 engages the institution proposed through a discussion of the possible impasses that would be experienced in the enforcement of this new approach and considers ways in which these could be averted, as well as acknowledging the obstacles that pose a tangible threat to its realistic application. Chapter 7 concludes the dissertation by presenting the conclusions based on the findings of the study, articulating the importance of the research and making recommendations towards further research on the issue of Illicit Financial Flows from developing economies.