A healthy mix of innovation, continuous engagement, and effective implementation can bring about sustained transformation in public procurement. A more effective and transparent procurement system frees up public money for achieving more and better development outcomes and improving the delivery of public services.
One trillion dollars. That’s a big number. It’s hard to ignore.
One trillion dollars, according to estimates by Global Financial Integrity, is the amount lost every year by developing countries through illicit financial outflows connected to trade mispricing, bribery, theft, kick-backs, tax evasion, organized crime, and trafficking of drugs, weapons, and humans. This means that for every one US dollar developing countries receive in external assistance, ten US dollars are lost to illicit financial flows (IFFS). These estimates should be treated with caution—it is difficult to measure what is designed to remain hidden. But even if we accept that these estimates are uncertain, no one doubts that IFFs are huge.
IFFs drain hard currency reserves, heighten inflation, reduce tax collection, discourage investment, and weaken free trade. These practices stifle poverty alleviation efforts, undermine the integrity of government, and damage the foundations of society.