draining development.pdf - Khazar University

Policy and Research Implications of Illicit Flows 503made to create the relevant estimates, and they are not, to our knowledge,included in the routine official GDP estimates of any nation.15. There is a conceptual complexity mentioned in Kopp’s chapter, namely, how todeal with the location of the earnings of smugglers. Assume that the prostituteis smuggled by a Moldovan trafficker who is paid in the Netherlands: Puttingaside issues of legality, in which country should the value added (so to speak) berecorded?16. They also offer an even broader definition, as follows: “money that is illegallyearned, transferred or utilized” (Kar and Cartwright-Smith 2008, 1). They donot subsequently develop the concept of “illegally utilized.”17. It is useful to repeat here the distinction between illegal and illicit provided inchapter 1. A typical definition of illicit, presented at dictionary.com, shows twomeanings: “1. not legally permitted or authorized; unlicensed; unlawful,” and“2. disapproved of or not permitted for moral or ethical reasons.” See http://dictionary.reference.com/browse/illicit.18. The World Bank lists Kuwait number 7 in terms of per capita income (adjustedfor purchasing power parity); Saudi Arabia is number 37.19. The issue is dealt with directly in Kar and Cartwright-Smith (2010).20. The translated report can be found on the website of this volume, http://go.worldbank.org/N2HMRB4G20.ReferencesAndreas, P., and K. Greenhill. 2010. Sex, Drugs, and Body Counts: The Politics of Numbersin Global Crime and Conflict. Ithaca, NY: Cornell University Press.Baker, R. W. 2005. Capitalism’s Achilles Heel: Dirty Money and How to Renew the Free-Market System. Hoboken, NJ: John Wiley & Sons.Barua, S., A. Majumder, and M. Akhtaruzzaman. 2007. “Determinants of Workers’Remittances in Bangladesh: An Empirical Study.” Bangladesh Bank WorkingPaper 0713, Policy Analysis Unit, Research Department, Bangladesh Bank,Dhaka, Bangladesh.Bräutigam, D., O.-H. Fjeldstad, and M. Moore, eds. 2008. Taxation and State-Buildingin Developing Countries: Capacity and Consent. Cambridge, U.K.: CambridgeUniversity Press.Caulkins, J. P., M. A. R. Kleiman, and J. D. Kulick. 2010. “Drug Production and Trafficking,Counterdrug Policies, and Security and Governance in Afghanistan.”June, Center on International Cooperation, New York University, New York.Christensen, J. 2009. “Giving with One Hand, Taking with the Other: The Dangerof Tax Havens Use for Development.” Media presentation, Counter Balance,Brussels.DIIS (Danish Institute for International Studies.) 2009. “Combating Illicit FinancialFlows from Poor Countries: Estimating the Possible Gains.” DIIS Policy Brief: