SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Behind 'Smokescreen' of Charity, Global Financial Elite Pillage African Nations $60bn Each Year
"Notions of aid and charity are in reality aiding politicians and multinational corporations to continue plundering Africa behind a shroud of ‘generosity’."
Jul 15, 2014
Under the "smokescreen" of giving aid or charity, western governments and multinational corporations are pillaging states in sub-Sahara Africa with losses nearing $60 billion each year, according to research published on Tuesday by a coalition of 10 Africa and UK-based NGOs.
The report, Honest accounts? The true story of Africa's billion dollar losses (pdf), finds that while an estimated $134 billion flows into the continent annually through a combination of loans, foreign investment and aid, African nations lose approximately $192 billion in profits made by foreign multinational companies, as well as through tax evasion and the costs of adapting to climate change.
"Notions of aid and charity are in reality aiding politicians and multinational corporations to continue plundering Africa behind a shroud of 'generosity'," the report's authors write. "It is preventing governments from being held accountable for policies that have a far greater impact on Africa and diverting attention from the structural changes needed to eliminate poverty and gross inequality."
The losses stem from abuses across a wide range of areas including: "illicit financial flows; profits taken out of the continent by multinational companies; debt payments; brain drain of skilled workers; illegal logging and fishing and the costs incurred as a result of climate change."
According to the report, if other countries keep looting Africa at the same rate, over the next 10 years the African people will lose $580 billion.
"Common understanding is the UK 'helps' Africa through aid, but in reality this serves as a smokescreen for the billions taken out," said Martin Drewry, director of Health Poverty Action. "It's sustained looting - the opposite of generous giving - and we should recognize that the City of London is at the heart of the global financial system that facilitates this."
"The amount of resources flowing out of Africa demands we rethink the idea that Africa is impoverished," the report continues. "Millions of ordinary Africans are certainly poor, but they are being kept so by a combination of bad policies and immoral or criminal activities perpetrated by elites both inside and outside the continent.
_____________________
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
Lauren McCauley
Lauren McCauley is a former senior editor for Common Dreams covering national and international politics and progressive news. She is now the Editor of Maine Morning Star. Lauren also helped produce a number of documentary films, including the award-winning Soundtrack for a Revolution and The Hollywood Complex, as well as one currently in production about civil rights icon James Meredith. Her writing has been featured on Newsweek, BillMoyers.com, TruthDig, Truthout, In These Times, and Extra! the newsletter of Fairness and Accuracy in Reporting. She currently lives in Kennebunk, Maine with her husband, two children, a dog, and several chickens.
Under the "smokescreen" of giving aid or charity, western governments and multinational corporations are pillaging states in sub-Sahara Africa with losses nearing $60 billion each year, according to research published on Tuesday by a coalition of 10 Africa and UK-based NGOs.
The report, Honest accounts? The true story of Africa's billion dollar losses (pdf), finds that while an estimated $134 billion flows into the continent annually through a combination of loans, foreign investment and aid, African nations lose approximately $192 billion in profits made by foreign multinational companies, as well as through tax evasion and the costs of adapting to climate change.
"Notions of aid and charity are in reality aiding politicians and multinational corporations to continue plundering Africa behind a shroud of 'generosity'," the report's authors write. "It is preventing governments from being held accountable for policies that have a far greater impact on Africa and diverting attention from the structural changes needed to eliminate poverty and gross inequality."
The losses stem from abuses across a wide range of areas including: "illicit financial flows; profits taken out of the continent by multinational companies; debt payments; brain drain of skilled workers; illegal logging and fishing and the costs incurred as a result of climate change."
According to the report, if other countries keep looting Africa at the same rate, over the next 10 years the African people will lose $580 billion.
"Common understanding is the UK 'helps' Africa through aid, but in reality this serves as a smokescreen for the billions taken out," said Martin Drewry, director of Health Poverty Action. "It's sustained looting - the opposite of generous giving - and we should recognize that the City of London is at the heart of the global financial system that facilitates this."
"The amount of resources flowing out of Africa demands we rethink the idea that Africa is impoverished," the report continues. "Millions of ordinary Africans are certainly poor, but they are being kept so by a combination of bad policies and immoral or criminal activities perpetrated by elites both inside and outside the continent.
_____________________
Lauren McCauley
Lauren McCauley is a former senior editor for Common Dreams covering national and international politics and progressive news. She is now the Editor of Maine Morning Star. Lauren also helped produce a number of documentary films, including the award-winning Soundtrack for a Revolution and The Hollywood Complex, as well as one currently in production about civil rights icon James Meredith. Her writing has been featured on Newsweek, BillMoyers.com, TruthDig, Truthout, In These Times, and Extra! the newsletter of Fairness and Accuracy in Reporting. She currently lives in Kennebunk, Maine with her husband, two children, a dog, and several chickens.
Under the "smokescreen" of giving aid or charity, western governments and multinational corporations are pillaging states in sub-Sahara Africa with losses nearing $60 billion each year, according to research published on Tuesday by a coalition of 10 Africa and UK-based NGOs.
The report, Honest accounts? The true story of Africa's billion dollar losses (pdf), finds that while an estimated $134 billion flows into the continent annually through a combination of loans, foreign investment and aid, African nations lose approximately $192 billion in profits made by foreign multinational companies, as well as through tax evasion and the costs of adapting to climate change.
"Notions of aid and charity are in reality aiding politicians and multinational corporations to continue plundering Africa behind a shroud of 'generosity'," the report's authors write. "It is preventing governments from being held accountable for policies that have a far greater impact on Africa and diverting attention from the structural changes needed to eliminate poverty and gross inequality."
The losses stem from abuses across a wide range of areas including: "illicit financial flows; profits taken out of the continent by multinational companies; debt payments; brain drain of skilled workers; illegal logging and fishing and the costs incurred as a result of climate change."
According to the report, if other countries keep looting Africa at the same rate, over the next 10 years the African people will lose $580 billion.
"Common understanding is the UK 'helps' Africa through aid, but in reality this serves as a smokescreen for the billions taken out," said Martin Drewry, director of Health Poverty Action. "It's sustained looting - the opposite of generous giving - and we should recognize that the City of London is at the heart of the global financial system that facilitates this."
"The amount of resources flowing out of Africa demands we rethink the idea that Africa is impoverished," the report continues. "Millions of ordinary Africans are certainly poor, but they are being kept so by a combination of bad policies and immoral or criminal activities perpetrated by elites both inside and outside the continent.
_____________________
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.