Lately, there have been many scandals reported around the world. Among the most notable cases is the money laundering scandal involved the Russian President, senior Russian officials, business people, and several other countries. The gravity of the problem, its impact and the importance of confronting such problem prompted a serious debate on this issue due to the fact that there is no country free from such a situation.
A candid review the economic theory which seemingly provides intellectual legitimacy to the so-called 'Washington Consensus' which under girds the decade long liberalization of international capital flows. Above all why the economic theory is such a poor description of what is actually happening.
