Illicit trade faces socio-economic consequences

In the past few decades, the growing growth in global trade and globalization has inadvertently caused the illegal trade to grow unimportantly. The scale of illegal trade has taken on an alarming dimension, now estimated worldwide by financial surveillants to amount to hundreds of trillions of USD per year. Unlawful trade increases expenses undermine legitimate financial activity and deprive governments of much-needed incomes for essential government services investments. It also diverges from the SDGs of the United Nations.
In a recent forum, the Transnational Alliance to Fight Illicit Trade (TRACIT), the threat of illicit trade to positive development, and many others are taking place in Switzerland under the auspices of the United Nations Conference on Trade and Development (UNCTAD), in collaboration with a US NGO.
The industries comprise oil, agricultural products, drugs, alcohol, fishing, smoking, wood, valuable metals and gemstones, pesticides and fauna, etc. The following sector groups are also included. The finds demonstrate in the study that illegal businesses considerably compromise accomplishment of the SDGs with a sweeping down of legitimate financial activity, depriving governments of incomes for investment into key public services, dislodging hundreds of thousands of lawful employment and causing irreversible damages for ecosystems and human life. The report’s findings reveal that illegal trade activities are seriously impeding the accomplishment of the SDGs.
In April 2019, the Federal Government was forced to suspend mined minerals in Zamfara State after the intelligence reports claiming that police inspector general Mohammed Adamu “developed powerful and glaring links between armed bandits operations and illicit miners.”
The World Health Organization (WHO) describes the illegal trade in tobacco as “any practice or behavior that is forbidden under the legislation concerning the manufacturing, shipment, receipt, ownership, delivery, distribution, sale or buy of tobacco goods or which is meant to promote this activity.” This is tens of billions of dollars’ worth of losses. Because of the nature of the item, it is readily transferred and disguised as a high profit.