Greece and illicit money flows

The Greek economy lost 261 billion US$ to crime, corruption and tax evasion from 2003 to 2011.

Greece also experienced massive inflows of illicit money in 2010 and 2011.

This means at least two things, according to Global Financial Integrity:

1. If it were not for tax havens, Greece would never have needed a bail-out.
2. The Greek (shadow) economy continues to grow at an increasing rate.

For workers and self-employed people at the bottom of the social hierarchy, these data must come as a shock. Or maybe people will say: we knew that already. But for anyone who still believes in the need and the possibility of social justice, these data are just unacceptable.

Every year, about 1 trillion USDollars of illicit money leave the developing countries, which is roughly 10 times the amount of official development aid.

Wealthy people from all over the world hold between 21 and 32 trillion US Dollars of undeclared income in tax havens.

At the global level, the richest 20 % had 82,8 % of income in 2007. The poorest 20 % had barely 1 % of incomes. In terms of wealth, this inequality is even much worse, and one dares not think of what it is taking into account the tax haven money.

When the European Commission tries to harmonize a modest tax on financial incomes, countries run to make bilateral arrangements with Switzerland, so as to escape the new legislation and maintain bank secrecy.

This is what the world looks like today. How long can this last?

In the meantime, the attempts to ‘fight extreme poverty’ are just absurd and ridiculous. The far too modest attempts to organize ‘basic’ health care and primary education are a slap in the face of poor people. This world is more than rich enough to give everyone a decent standard of living. Fighting inequality with universal social protection while fighting for just taxes and against tax havens should be the top priority.

This is what Global Social Justice is about. Read the contributions with new figures on illicit money flows, new considerations on global inequality and so much more. And give us your feedback, which is always very welcome.