The state of governance in Africa: the dimension of illicit financial flows as a governance challenge

Abstract

The state’s ability to pursue a developmental role depends to a large extent on its relative autonomy from the interest of powerful interest groups. In this context, illicit financial flows further deepen the unequal distribution of power (political and economic power) as the beneficiaries of IFF become wealthier and gain further control on the polity, which has adverse implications, notably on pro-poor policies. In other words, a major political cost of illicit financial flows is the undermining of the ability of African governments to implement developmental and transformative policies that run against the powerful interest groups that oppose these policies.