This Tuesday, Global Financial Integrity (GFI),published its annual update of black money that has been draining economies around the world , to include the data for the year 2012.

The report "finds that developing and emerging economies lost US$6.6 trillion in illicit financial flows from 2003 through 2012, with illicit outflows increasing at an staggering average rate of 9.4 percent per year—roughly twice as fast as global GDP."

For the year 2012, India stands shockingly at the 3rd place behind China and Russia with nearly US$ 95 billion leaving the country in illicit financial flows.

Raymond Baker, the founder of GFI has argued in his book that "illicit financial flows are bleeding developing countries dry" and as we can see by these numbers, the impact black money is having on our economy is not hard to guess

Over the 10 year period, India stands at 4th place.
As the Washington Post reports, China Russian, India and Mexico launder as much money as the next 141 developing countries combined.

Black money, explains a question that troubled development economists for long - why developing countries fail to grow despite large foreign aid.

As these findings have proven time and again
"every year, roughly US$ 1 trillion flows illegally out of developing and emerging economies due to crime, corruption, and tax evasion—more than these countries receive in foreign direct investment and foreign aid combined."