A study conducted by the Washington-based think tank Global Financial Integrity (GFI) is showing that Thailand ranks 13th internationally in terms of illicit capital outflow.
What that means in real-world terms is that THB197 billion (USD6.43 billion) is seeping out of the Kingdom each year thanks to such activities as tax evasion, money laundering and good old-fashioned crime.
The GFI’s report on Illicit Financial Flows from Developing Countries: 2001-2010 showed that China is subject to the greatest capital flight, whereas Malaysia ranks third, and the Philippines sixth.
So, Thailand’s not the worst of the bunch, but still, lend an ear to these figures: Between 2001 and 2010, the Kingdom lost USD64.3 billion to illicit hemorrhaging and in that same time period, the developing world as a whole lost some USD6 trillion.
This is especially troubling, seeing as this money is coming out of countries where it is desperately needed to develop infrastructure and spurn local investment.
Perhaps this is why so many Thais are turning to the loan sharks for capital.
