A/HRC/36/52
51.
The negative consequences for the affected population derived from the nonrepatriation of illicit financial flows are evident. When the population is deprived of the
minimum quality standards indispensable for survival, not only the civil and political but
also the economic, social and cultural rights of the population are violated. Such violations
undoubtedly have a direct impact on the dignity of the citizens, whose most fundamental
rights are deliberately curtailed.
52.
In Tunisia, the return of the assets frozen in several countries would contribute to
alleviating the effects on the population of the increasing fiscal pressure caused by the
country’s deteriorating economic situation. The repatriation of the looted money to Yemen
would certainly contribute to ameliorating the extreme living conditions of the population
in a country with one of the lowest rates of human development. 69
Non-return hinders the realization of the right to development
53.
The non-repatriation of illicit financial flows deprives countries of origin of the
much-needed additional resources for public investment, jeopardizing its development
prospects. Developing countries lose billions of dollars every year through illicit financial
flows. In Africa, it is estimated that over the past 50 years, the continent has lost $1 trillion
in illicit financial flows. This amount is equivalent to all the official development assistance
received in the same time frame.70
54.
Furthermore, non-repatriation of illicit financial flows creates immense human
suffering and clearly undermines development. Countries lose capital for investment and
revenue that could have been used to finance development programmes. These outflows
pose a particularly serious concern to countries with high levels of poverty and increasing
resource needs due to population growth. Reduction of official development assistance due
to the global economic and financial crisis is compelling even more developing countries to
look to their own resources to fund their development agendas. 71
55.
Deprived of important monetary assets and of the revenues of their natural
resources, developing countries are forced to reduce investment in key development sectors
or to increase their debt burden in order to introduce the necessary policies at the domestic
level. Lack of public policies and investment in social and economic programmes
disproportionately affects the weakest sectors of the population.
56.
Illicit financial flows also undermine State capacity and governance. The people and
corporations behind illicit financial flows usually become involved in acts of corruption in
order to transfer the proceeds of bribery and abuse of power. By preventing the proper
functioning of regulatory institutions, they compromise State officials and institutions. This
situation may reverse all efforts to reinforce State structures and to consolidate the rule of
law.
57.
Countries which are rich in natural resources and countries with inadequate or nonexistent institutional architectures particularly attract illicit financial flows. In a
memorandum of understanding on the modalities for the return to Nigeria of stolen assets
confiscated by the United Kingdom of Great Britain and Northern Ireland, it was
acknowledged that the embezzlement of large amounts of State funds considerably reduced
the resources available to the Government of Nigeria to provide social services or invest in
infrastructure and economic development in order to move the country to greater
69
70
71
14
Yemen ranks 168 out of 188 countries on the Human Development Index. In 2013, 4 per cent of the
population was considered by the United Nations Development Programme as suffering from
multidimensional poverty. Today, food insecurity affects 70 per cent of the population as a result of
the armed conflict. See H. Kodmani, “Guerre oubliée au Yémen : la famine menace”, Libération, 23
March 2017.
ECA, Illicit Financial Flows: Report of the High Level Panel, p. 14.
Ibid., p. 53.
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