Description
Macroeconomic and broader governance related factors act as drivers of IFFs. These factors include red tape, bureaucratic hurdles, weakness in regulatory oversight, deficient customs enforcement, long judicial delays, bribery and kickbacks. Other governance related factors that prompt IFFs involve the skewed distribution of income. The vicious cycle of rising income of high net-worth individuals, non-inclusive growth exacerbated by tax fatigue among the wealthy (due to a narrow tax base), and subsequent tax evasion exacerbates inequality. These factors act as mark-ups that provide incentives for IFFs. This vicious cycle indicates that inequality may be a cause as much as it effects trade-based IFFs. Human trafficking and smuggling; criminal and terrorist networks continue to profit immensely from illicit trade, including in natural resources. The panel will deliver expert insights and assessments on governance related drivers and motivations for IFFs, including those associated with drug trafficking and crime on one hand and those arising from both traditional governance related IFFs (e.g. corruption, tax evasion) and non-traditional threats.
