OECD, 2nd Task Force Meeting on Charting Illicit Trade - Jack Radisch

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This presentation by Jack Radisch was made at the 2nd Task Force Meeting on Charting Illicit Trade held on 5-7 March 2014. www.oecd.org/gov/risk/charting-illicit-trade-second-task-force-meeting.htm

This presentation by Jack Radisch was made at the 2nd Task Force Meeting on Charting Illicit Trade held on 5-7 March 2014. www.oecd.org/gov/risk/charting-illicit-trade-second-task-force-meeting.htm

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  • 1. OECD TASK FORCE ON CHARTING ILLICIT TRADE Jack Radisch OECD Public Governance and Territorial Development Directorate 2nd Meeting of TF-CIT, Paris, March 5-7 2014
  • 2. A Network to Fight Illicit Networks OECD Task Force on Charting Illicit Trade Tobacco Narcotics Counterfeit Medicines Trafficking in Persons Environmentally Sensitive Goods Corruption Illicit Financial Flows Other industries, e.g. Food? Electronics? Apparel? Cyber- crime Alcohol
  • 3. • Nearly 30 percent of global adult alcohol consumption is unrecorded/illicit. • On average 15 percent alcohol consumption in OECD countries is unrecorded. • Low-income countries have a higher proportion of unrecorded alcohol to total alcohol consumption (approx. 40 – 50 percent) than high- income countries (approx. 11 – 30 percent) (WHO, 2011). • Information about counterfeit alcohol is limited to relatively small case studies Alcohol
  • 4. Excise tax on alcohol and unrecorded APC across OECD countries, 2005 AUS BEL CHL CZ DEN EST FIN FR HUN ICEIRE NTLNZ NOR POL POT KORSLO SWE CH TUR UK 0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% ProportionofunrecordedAPC Excise tax as a per cent of the total retail price for 1 litre of pure alcohol
  • 5. Regional breakdown of the global illicit drug market in 2003, in USD billion 142 106 35 16 14 9 North America Europe Asia Oceania Africa Caribbean, South and Central America Source: adapted from UNODC (2011b), “Estimating illicit financial flows resulting from drug trafficking and other transnational organized crimes”, United Nations Office of Drug and Crime, accessed on 28 February 2014, www.unodc.org/documents/data-and-analysis/Studies/Illicit_financial_flows_2011_web.pdf
  • 6. • Illegal share of global tobacco market - 11 %. • Annual revenue losses USD 40.5 billion . • Biggest illicit cigarette markets (in absolute values) are in China, Russia, the United States and the European Union. Tobacco
  • 7. 10 largest markets for illicit tobacco (2007) Note: Figures are based on updated estimates of the illicit cigarette trade from 84 countries around the world, using the latest available estimates from 2007 or as close to 2007 as possible. Source: Joossens, L. (2011) “Pricing Policies and Control of Tobacco in Europe (PPACTE): Illicit tobacco trade in Europe: Issues and Solutions”, Pricing Policies and Control of Tobacco in Europe (PPACTE). 0 50 100 150 200 250 0% 5% 10% 15% 20% 25% 30% 35% 40% China Russian Federation United States EU Brazil Philippines India Indonesia Pakistan Turkey BillionCigarettes Percentageofillicitmarket Relative size (left axis) Absolute size (right axis)
  • 8. • Annual profits USD 31.6 billion for trafficking 2.45 M persons across borders (ILO, 2005) • 460 trafficking flows reported (2007- 2010) • 20.9 million people were victims of forced labour (2012) • 73% reported victims trafficked across borders • Nearly 50 percent of all victims stay within the same geographical region (2012). Trafficking in Persons in numbers
  • 9. • 5 major areas : Wildlife, Timber, Fisheries, Waste and Chemicals. • Estimated global value per year $30- $70 B, not including Wildlife (2009). Environmentally sensitive goods
  • 10. • Global losses estimated to reach USD 75 billion in 2010. • The ratio between illegal and legal pharmaceuticals is highest in Africa. • Russia and the Ukraine are trafficking hubs of counterfeit medicines. Counterfeit Medicines
  • 11. • Convergence where governance and law enforcement is weak, corruption and violence is high coupled with a sound infrastructure for globalization such as free trade zones. • Examples: – Illicit trade in drugs and trafficking in persons – IUU fishing and trafficking in persons Convergence of illicit trade
  • 12. • Find geographical position of transit hubs • Cross-sectoral data base, increased/automated information sharing • Harmonised methodology for measurement Future Outlook
  • 13. THANK YOU! jack.radisch@oecd.org