World Bank, UN Launch Plan To Recover Stolen Loot
The UN and the World Bank have launched an initiative to make it easier for governments in developing countries to recover stolen assets stashed in rich countries by corrupt leaders.
The Stolen Asset Recovery initiative, or StAR, aims to encourage rich countries to return the loot and for developing countries to properly invest the recovered funds in social and anti-poverty programs.
The StAR initiative shifts the recovery of looted assets from a bilateral effort between two countries to one with the muscle that comes from having the backing of international conventions and organizations.
World Bank President Robert Zoellick said he hoped the initiative would improve cooperation between rich and poor countries over the recovery of stolen assets and would encourage more countries to ratify the UN Convention against Corruption.
Zoellick noted that it took the Philippines 18 years to recover just 620 million US dollar of (the fallen dictator) Ferdinand Marcos money, and “it will be many decades before it recovers from the devastating consequences of his actions”.
Former Nigerian finance minister, Ngozi Okonjo-Iweala, who helped recover 500 million dollar worth of assets looted by former military dictator Sani Abacha (and mostly stashed in Switzerland), said the StAR initiative marked a first step towards “rebalancing” responsibilities in the fight against corruption.
The scheme follows fresh research showing massive international flows of illicit funds, estimated to be worth more than 1.000 billion dollar a year. The joint initiative is an attempt to provide a new multilateral framework for the recovery of stolen assets, but will depend on cooperation from national governments who often have legal jurisdiction.
Zoellick said: – Developing countries need to improve governance and accountability, but developed countries should also stop providing a safe haven for stolen proceeds.
Zoellick further noted, that every 100 million dollar recovered could pay for immunizations for four million children, or provide water connections for 250.000 households, or finance treatment for a year for more than 600.000 people with HIV and AIDS.
The new system will work to build the capacity of developing countries to track stolen money going overseas and to emphasize ways that financial centers can better detect and deter money laundering.
Under the plan, the World Bank would help develop financial and legal institutions in poor nations to detect the illegal diversion of resources. Zoellick said the Bank would also support countries that sue in international courts.
Kilde: www.worldbank.org
