Stolen Assets Recovery and the SDG Finance Gap: a Novel Dataset and a Research Agenda

The international development community increasingly recognizes the connection between stolen asset recovery and development, as illicit financial flows from corruption and tax evasion significantly impair countries' development goals. This recognition is reflected in key international commitments, including the UN General Assembly's political declaration on corruption (2021) and the "Pact for the Future" declaration (2024), which emphasize recovering stolen assets to promote sustainable development and address SDG financing gaps. The asset recovery process consists of three stages (Angélico et al, 2022; Maguchu & Ghozi, 2022): identification of assets purchased with ill-gotten gains, judicial proceedings in the asset location's jurisdiction (typically in the Global North), and the return phase, where funds are transferred to the jurisdiction of origin (usually in the Global South). The StAR (Stolen Asset Recovery) Initiative, a World Bank and UNODC joint project, maintains a database of over 500 asset recovery cases, with 195 completed cases where funds have been returned to their country of origin. Our research examines whether these returned funds have been used to finance SDG-related projects and which specific SDGs they target. Using data from the StAR initiative, official documents, and media reports, we created a novel dataset documenting 35 cases where returned assets funded development programs. Twenty-nine of these cases can be linked to specific SDGs. Despite these international developments and available empirical data, academic research on these topics remains limited. Our scoping literature review found only a dozen papers in quality journals addressing corruption and asset return, mostly in law journals (e.g., Wahyudi, 2019; Moiseienko, 2018; Chamberlain, 2003) focusing on legal aspects. Notably, no paper addresses the connection between asset recovery and sustainable development. Our dataset and identified literature gap open new research avenues exploring links between corruption, sustainable development finance, and asset recovery stages. Key research questions include: What is the transparency level of agreements between sending and receiving countries? What safeguards prevent "re-corruption" of returned funds? What roles do non-state actors and intermediaries (banking system, accountants, real estate agents) play in asset recovery processes and in facilitating corruption? The literature gaps we identify and our shared dataset provide a foundation for developing research programs on the relationship between stolen asset recovery and sustainable development. References • Angélico, F., Villeneuve, J.-P., & Andrews, L. (2022). Civil society organisations & asset recovery: A manual for action. Civil Forum for Asset Recovery e.V. • Maguchu, P., & Ghozi, A. (2022). The Role of Civil Society Organisations in Asset Recovery. Indonesian Journal of International Law, 19(2), 317-338. • Moiseienko, A. (2018). The ownership of confiscated proceeds of corruption under the un convention against corruption. International & comparative law quarterly, 67(3), 669-694. • United Nations General Assembly. (2021, June 2). Resolution adopted by the General Assembly on 2 June 2021 [32nd Special Session]. https://undocs.org/A/RES/S-32/1 • United Nations General Assembly. (2024, September 22). The Pact for the Future: Strengthening of the United Nations system [Resolution 79/1]. 79th Session. • Wahyudi, S. (2019). Penal policy on assets recovery on corruption cases in Indonesia. JILS, 4, 45.