Illicit Financial Flows and State Fragility

My proposed research addresses the critical issue of illicit and tax-avoidance related financial flows (ITAFF) within the contemporary global development agenda, with a special focus on 'fragile' states. Analytically, I intend to move beyond the nation-centric dichotomy between external and internal factors driving ITAFFs, by situating the

phenomenon of ITAFFs within a world-system analysis of contemporary capitalism and reconceptualizing these flows as modes of geographical transfer of value (GTV). This pursuit necessitates a critical synthesis of neoclassical perspectives and heterodox traditions of political economy. The research would comprise three interlinked

investigations. The first segment would critically examine the construction and dissemination of indices that ascribe fragility or institutional risk-based scores to nation-states, uncovering the epistemic hegemony of global financial hubs, and proximate multilateral institutions, over contemporary perceptions of 'state capacity' and expected

role of 'institutions'. The second investigation would delve into the politico-economic factors shaping the choice of GTV mode, understanding how IFFs become dominant conduit for GTV in states lacking minimal 'capacity' to support global accumulation. The third chapter would explore how IFFs shape the dynamics of extraction and

geographical transfer of rents in resource-rich 'fragile' settings, where a unique rent-seeking alliance develops between local and global capital.