U4 Helpdesk Answer - Illicit financial flows, fragility and conflict

Such measurement attempts all contain a very significant margin of In 2021 and 2022, for instance, UNCTAD (2023a: error, given the large variation in sources, channels 14) piloted various methodologies to track the scale and nature of IFFs, as well as the lack of data due to of different types of IFFs across selected sub- the hidden nature of the phenomenon. [...] The resulting insecurity and inequalities have the potential to further weaken both the capacity and the willingness of the state to fight IFF, reinforcing the cycle.” Figure 4 The vicious cycle of positive security and legal capital IFF (Cobham 2014) There is some empirical basis for the circular nature of the relationship. [...] Given the widespread view that undermining the provision of basic public goods the quality of institutions is a key determinant of and services (thereby weakening the legitimacy of economic development (Robinson and Acemoglu the political system), and by shifting the costs of 2012; Subramanian, Trebbi, and Rodrik 2002), political regimes that finance their consolidation through IFFs have neither t. [...] The causal mechanisms are thought where regulation and oversight of natural resources to be the lack of available resources for investment is weak and the environment especially fragile, to increase productivity, as well as the fact that extractive industry revenues are more likely to illicit financial outflows are associated with the leave the country in the form of an IFF. [...] The Corruption in Fragile States Blog: and the failure of theory:‘State failure’, the Corruption, Justice and Legitimacy idea of the state and the practice of state Program.