Paper/Proposal Title
Illicit Financial Flows: A Major Obstacle to the South African Transformational Agenda
Location
M2320
Start Date
November 2023
End Date
November 2023
Abstract
With the advent of democracy in South Africa in 1994, the government is committed to transform the society into an equalitarian one. Starting with the adoption of the 1996 constitution as well as numerous policies to turn it normative commitment into reality, the country became a good constitutional democracy and the most developed on the continent. Yet it is marred by a paradox: On the one hand, it is one the largest economies in Africa, and its constitutions is considered one the best in the world. On the other hand, the country is characterised by massive poverty, huge unemployment and considered one of the most unequal country in the world. While this paradox is playing out in the country, the Zondo Commission on the State Capture unveiled how the political elite and main actors in the private sector have been travelling to Dubai and other exotics places to hide the proceeds of illegally or immorally acquired funds, or channel these funds abroad without travelling. This is the manifestation of illicit financial flows (IFFs) which was also revealed through the Panama papers that exposed numerous South Africans on the list of those hiding stolen money in save heavens. In the same vein, the 2014 financial integrity report revealed that from 2003-2012 , the country lost trillions of dollars to IFFs.
It is against this backdrop that this paper will examine the impact of IFFs in frustrating the South African transformation agenda which seeks to foster the right to equality, and improve the well-being of the entire population. To this end the research examines the political economy of IFFs including their forms and effects on the South Africa’s development and transformative agenda as whole. As part of assessing the impact of IFFs on the country’s transformative agenda, the paper explores the linkages between development and financial transparency, examines the data on IFFs from South Africa and their correlation with extreme poverty, unemployment and inequality, before mapping the way forward in providing remedies to the problem.
Author/Speaker Biographical Statement(s)
Prof. Kamga is dean of the Faculty of Law, University of the Free State.
Illicit Financial Flows: A Major Obstacle to the South African Transformational Agenda
M2320
With the advent of democracy in South Africa in 1994, the government is committed to transform the society into an equalitarian one. Starting with the adoption of the 1996 constitution as well as numerous policies to turn it normative commitment into reality, the country became a good constitutional democracy and the most developed on the continent. Yet it is marred by a paradox: On the one hand, it is one the largest economies in Africa, and its constitutions is considered one the best in the world. On the other hand, the country is characterised by massive poverty, huge unemployment and considered one of the most unequal country in the world. While this paradox is playing out in the country, the Zondo Commission on the State Capture unveiled how the political elite and main actors in the private sector have been travelling to Dubai and other exotics places to hide the proceeds of illegally or immorally acquired funds, or channel these funds abroad without travelling. This is the manifestation of illicit financial flows (IFFs) which was also revealed through the Panama papers that exposed numerous South Africans on the list of those hiding stolen money in save heavens. In the same vein, the 2014 financial integrity report revealed that from 2003-2012 , the country lost trillions of dollars to IFFs.
It is against this backdrop that this paper will examine the impact of IFFs in frustrating the South African transformation agenda which seeks to foster the right to equality, and improve the well-being of the entire population. To this end the research examines the political economy of IFFs including their forms and effects on the South Africa’s development and transformative agenda as whole. As part of assessing the impact of IFFs on the country’s transformative agenda, the paper explores the linkages between development and financial transparency, examines the data on IFFs from South Africa and their correlation with extreme poverty, unemployment and inequality, before mapping the way forward in providing remedies to the problem.
