A/HRC/22/42 United Nations General Assembly Distr.: General 21 February 2013 Original: English Human Rights Council Twenty-second session Agenda item 3 Promotion and protection of all human rights, civil, political, economic, social and cultural rights, including the right to development The negative impact of the non-repatriation of funds of illicit origin on the enjoyment of human rights Interim report by the Independent Expert on the effects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights, Cephas Lumina* Summary Illicit financial flows – generated from crime, corruption, embezzlement and tax evasion – represent a major drain on the resources of developing countries, reducing tax revenues and investment inflows, hindering development, exacerbating poverty and undermining the enjoyment of human rights. It is estimated that, on average, developing countries lost between US$783 billion and US$1,138 billion in illicit financial outflows in 2010 and that these flows have increased in real terms to 8.6 per cent over the period 2001– 2010, suggesting that existing measures to tackle the problem have not had a significant impact. Many of the countries affected by massive illicit financial outflows are burdened with heavy external debts and have to make difficult choices concerning allocation of scarce national resources between debt service and provision of essential public services. Curtailing illicit financial outflows and ensuring the repatriation of illicit funds to the countries of origin can increase the resources available to these countries for development, poverty alleviation and the realization of all human rights, particularly economic, social and cultural rights. Repatriation of illicit funds may also help ease the external debt burdens of the countries of origin. * GE.13-11383 Late submission.