The critical intersection of Illicit Financial Flows (IFFs) and the political economy has been highlighted by a researcher from the University of Ghana’s Department of Political Science.

Abigail Tetteh Yankey speaking at a forum on "Curbing IFFs to Finance Development" held on Thursday, November 16, at AH Hotel in Accra, traced the emergence of the illicit financial flows agenda back to the Global Tax Justice Movement in 2000.

She emphasised that corruption is not confined to lower-income countries and highlighted the significant impact of 'commercial tax evasion,' surpassing flows linked to bribery.

The political consensus to curtail IFFs, as reflected in the Sustainable Development Goals (SDGs), was underscored as a crucial global initiative to alleviate poverty and finance sustainable development.

However, Tetteh Yankey pointed out the multifaceted challenges in addressing IFFs, including the need for capacity, resources, and, most importantly, political consensus.

The overwhelming multiple mandating reporting requirements, lack of central coordination, and the dilemma between international and national standards were identified as impediments to effective action.

Focusing on the gold export regime, the workshop advocated for the effective implementation of community mining schemes and other policy measures to formalize Artisanal and Small-Scale Gold Mining (ASGM).

Strengthening tax administration, regulatory collaboration, and capacity-building in technology usage for registration were proposed to enhance transparency and good governance practices in the sector.

The challenges associated with governance architecture were also brought to the forefront.

Tetteh Yankey highlighted issues such as executive dominance, weak checks and balances, rent-seeking behaviour, party loyalty overshadowing civic loyalty, monetisation of elections, inadequate resources, and insufficient enforcement of laws.

The large informal economy, fragmentation of institutional roles, the absence of specific laws on IFF, and excessively centralized policy-making were identified as structural challenges that need urgent attention.

The workshop's discussions, fueled by Tetteh Yankey's insights, underscored the imperative for political consensus and comprehensive governance reforms to effectively curb Illicit Financial Flows and foster sustainable development in Ghana.