“Global bads”, namely corruption and illicit financial flows (IFFs), undermine economic growth and legitimate trade, reduce domestic resource mobilisation, and deprive governments of the financial resources needed to deliver public goods. Curbing corruption in development and stemming IFFs are key priorities of the OECD-DAC.
Through the Council Recommendation for Development Co-operation Actors on Managing the Risk of Corruption, policy research and advice, the ACTT seeks to ensure official development assistance (ODA) is well spent, that fiduciary risks or losses are minimised, and good practices shared.
Although the scale of IFFs is heavily debated, the consensus is that they outstrip ODA and FDI. ACTT work is ongoing to better understand the actors, networks and policy conditions that give rise to or exacerbate IFFs in developing countries. Strengthening evidence on the links between IFFs and development is also key to ensuring coherence of IFF responses across source, transit and destination countries.