draining development.pdf - Khazar University

362 Draining Development?Figure 11.2. Intensity of Economic Exposure: Implied Ratios of Secrecy Jurisdiction Sharesto GDP, by Region% of GDP5045403530252015105East Asia and PacificEurope and Central AsiaLatin America and the CaribbeanMiddle East and North AfricaSouth AsiaSub-Saharan Africa0narrow SJ broad SJ narrow SJ broad SJ narrow SJ broad SJ narrow SJ broad SJexports (goods) imports (goods) portfolio investment bank claimsimportance of economic and financial links with SJsSources: See figure 11.1.Note: SJ = secrecy jurisdiction. “Narrow” and “broad” refer to shorter or longer lists of secrecy jurisdictions (see the text).jurisdiction lists are often driven, as in the case of Latin American trade,by the inclusion of the United States in the latter list.Striking examples emerge from the underlying country-level data.One example is highlighted in figure 11.3, which shows the total value ofZambian trade from 1995 to 2008, as well as the shares attributable toonly one secrecy jurisdiction, Switzerland.Note that the share of declared Zambian exports to Switzerland in thetotal declared exports of Zambia (that is, exports declared at and subsequentlyreported by Zambian customs) rise from a fraction of 1 percentin 1995–98 to more than 50 percent in 2008. The growth in exports overthe period reflects Zambia’s emergence as a major copper producer.However, copper is not a product for which particular demand or processingcapacity is noted in Switzerland, although relatively opaque metaltrading does take place there. This highlights a major concern about thedata and emphasizes the need for transparency. If one were to assume