Drug smuggling and human trafficking, money laundering, the illegal exploitation of natural resources and wildlife, the sale of fraudulent medicines or counterfeit goods: They're all criminal activities – and they're all highly lucrative.
As documented by the World Development Report 2011, these threats impede economic development, and Fragile and Conflict-Affected States (FCS) are especially vulnerable. In FCS situations – where countries have been devastated by war, are suffering from weak state security, or are enduring severe economic hardship – criminal networks operate with ease, using corruption and intimidation to undermine the integrity of public officials, institutions and the rule of law. Illegal activity often ends up undermining the state’s capacity to deliver even basic services. The far-reaching impact of such lawbreaking was recently explored at a panel – “Exploring the Link Between Fragility and Criminal Activity” – that was part of the World Bank’s “Fragility, Conflict and Violence Forum 2015.”
The diversion of assets toward illegal activities drains away resources and tax revenues that are needed for urgent human needs and vital civic priorities. Such a siphoning-off of scarce funds undermines governments' integrity and infects countries' investment climate – factors that are indispensable to creating jobs, boosting growth and building shared prosperity. This is an even greater danger in FCS countries, where trust in institutions is already impaired, and where lawbreaking can intensify popular grievances and provoke further violence.
A wide range of tools are available to practitioners seeking to address the scourge of criminal activity, helping them stem the illicit financial flows related to crime. On the prevention side, one example is the Extractive Industries Transparency Initiative in Nigeria, which shows how increased contract transparency in the extractives sector has worked as a remedy. On the enforcement side, there are also criminal-justice mechanisms, like “follow the money” tools that can help trace and recover the proceeds of crime. Improved domestic and international cooperation can also help to combat criminal activities and their furtive flows of funds.
The need to fight illicit financial flows has become a worldwide policy priority, with leaders of the G20 and G8 nations now fully engaged in the crackdown on crime. The World Bank Group, for our part, has focused several of our Global Practices and specialized units – our practice groups on Governance, Finance and Markets, Trade and Competitiveness, and Energy and Extractive Industries, along with our Stolen Asset Recovery (StAR) Initiative – on promoting coordinated action to fight criminal activities and illicit flows of funds.
Efforts to ensure honesty, transparency, accountability and the rule of law help strengthen all aspects of the development process, and they are particularly important in FCS conditions. Understanding criminal activities in FCS situations, and asserting potential remedies, helps promote a clearer vision of the steps that can be taken to reduce transnational crime and to focus the full measure of the world's resources on achieving development impact.
This is a short piece written for UNDP, which is organizing my Kapuscinski lecture in Malta on Wednesday (4pm GMT, webcast live)
Power is intangible, but crucial; a subtle and pervasive force field connecting individuals, communities and nations in a constant process of negotiation, contestation and change. Development is, at its heart, about the redistribution and accumulation of power by citizens.
Much of the standard work on empowerment focuses on institutions and the world of formal power – can people vote, express dissent, organise, find decent jobs, get access to information and justice?
These are all crucial questions, but there is an earlier stage; power ‘within’. The very first step of empowerment takes place in the hearts and minds of the individuals who ask: ‘Do I have rights? Am I a fit person to express a view? Why should anyone listen to me? Am I willing and able to speak up, and what will happen if I do?’
Asking, (and answering) such questions is the first step in exercising citizenship, the process by which men and women engage with each other, and with decision-makers; coming together to seek improvements in their lives. Such engagement can be peaceful (the daily exercise of the social contract between citizen and state), but it may also involve disagreement and conflict, particularly when power must be surrendered by the powerful, to empower those ‘beneath’ them.
In response to such situations, development specialists typically call for sector-wide reforms. And the design of such reforms draws on sector policy analysis and on the assessment of service delivery arrangements and capacity. Increasingly, since the 2004 World Development Report, sector reforms also seek to make teachers, health professionals and other service providers accountable to citizens and communities.
For client countries of the World Bank, there is no shortage of interest in—or desire for—information on trade flows and market access. Improving trade performance is a critical component of many client countries’ development strategies, and trade data hold the key to understanding how countries are faring in the quest to eliminate trade barriers, increase competitiveness, and turn improved market access into actual trade flows.
But the trade data arena is large and complex, full of topical jargon, different nomenclatures and coding systems, availability constraints, and potentially complicated indicators. For newcomers, trade data navigation can be particularly challenging, which belies the immense value and richness in the wealth of information that has become available and accessible over the past few years.
Enter the World Integrated Trade Solution, or WITS.
Available in: Español | عربي
Noranna busy at work: A true-blooded Moro, she is among the many witnesses to the struggle around her. As a child, she saw how conflict affected the lives of the people in their community in Maguindanao – lack of social services, slow development progress and displaced families.
In Mindanao, southern Philippines, the decades-long search for long lasting peace has been hindered by many challenges and natural calamities. This has led to a situation where young professionals are learning a type of development work that deals with the effects of various conflicts.
The Bangsamoro Development Agency or BDA, provides more than work opportunities for residents of Mindanao. Bangsamoro basically means “Moro nation,” a term currently used to describe the Muslim-majority areas in Mindanao – its peoples, culture and ethnic groups.
In post conflict countries, those who have made it out of the country are keenly aware that the livelihoods of those left behind vitally depend on remittance transfers. While concerns have been expressed about the possibility that remittances may stoke conflict, the majority view is that Diaspora support from abroad can contribute to democracy. It has been clearly established that private remittances are of central importance for restoring stability by enhancing human security in strife-torn societies. As in much of Sub-Saharan Africa, due to the predominantly informal nature of remittance delivery mechanisms, the magnitude of remittances to the economies of these regions has been under-estimated.
Our Top Ten Blog Posts from 2013
This post was originally published on July 31, 2013
From Action on Armed Violence using data from the Geneva Declaration’s Global Burden of Armed Violence report (whose link seems to be down at the moment). Key points to note:
Only one in 8 violent deaths occur in the ‘conflict settings’ so beloved of news coverage. Most of the rest are ‘intentional homicides’ committed in gun and drug-plagued (but supposedly non-conflict) countries like El Salvador (at 62 deaths per 100,000 people, the world’s most violent ‘peaceful’ country). People often claim the death toll in El Salvador is now worse than during its 1980s civil war, but the numbers don’t seem to add up – 70,000 died over about 12 years in that war, whereas the current carnage kills ‘only’ about 3,600 a year. Latin America remains the world’s homicide hotspot.
Total global death toll is 526,000. That’s a shocking one a minute, but less than half the deaths from road accidents (which I imagine have a similar victim demographic).
But things can improve. The murder rate in El Salvador has halved since the data for this report was gathered, thanks to a truce struck between the country’s two main street gangs.
Elif Yavuz, a former World Bank consultant, was amongst the 68 people who died in the attack at the Westgate shopping mall in Nairobi in September of this year. At the time of her death, Elif was working for the Clinton Foundation. Hers had been a life dedicated to fighting poverty and disease.
The horror of what enfolded at Westgate is a reminder of the pervasive threat of insecurity, and at the same time of our efforts to protect lives and preserve human dignity the world over. The massacre raises questions, too. Are we deploying the right tools to help put an end to such violence? And what is the role, if any, that development practitioners can play in preventing them? The recently released World Bank report, Inclusion Matters: The Foundation for Shared Prosperity, provides us with some ideas.
The Al-Shabab attack in Nairobi was a tragedy for the victims and their families. Nevertheless, countless numbers of people across the globe die every day in less violent circumstances, and yet just as needlessly – from disease and malnutrition for example. Consider malaria – the issue on which Elif had been working: the latest data show that more than one million people, the majority of them children under the age of five in Africa, are likely to die of malaria this year. Many of these deaths occur in countries where wealth and opportunity are to be found, but the wealth is concentrated in the hands of only a few, while others are barred from opportunities. The evidence suggests that these inequalities, and the feelings of injustice and powerlessness they engender, have the potential to fuel conflict and tempt people to espouse radical ideologies and resort to violence as a means of addressing injustice.
OUAGADOUGOU, Burkina Faso — I arrived in the Sahel on a four-country trip thinking of the trouble in the region: drought, hunger, and conflict. I left impressed by the political leadership and the resolve of the people. To learn more, please watch this video blog.
“You are a Bangladeshi. Did your country benefit from seceding from Pakistan?” I was recently invited to meet with members of the Yemeni National Dialogue who are debating the future of the state. The wounds of the past are deep in Yemen’s history – war between the South and the North and conflict within Regions – and not surprisingly the talk of regional secession is present in the discussions. The question drew a murmur in a room full of policy makers and activists from different parts of Yemen. It had clearly touched a raw nerve.
The National Dialogue is an important moment in Yemen’s rich history. It has brought together political parties, social groups, women, youth, and regional representation around a dialogue to craft the future of Yemen. Some argue that the process is incomplete and imperfect – not all stakeholders are present; there is a fear of elite capture; and in some parts of the country there is armed conflict. But, despite these challenges it is to Yemen’s credit that it is hoping to forge a state through dialogue – not the typical image of Yemen portrayed in the international press.