Thursday, May 01, 2014

When Capitalism is a Crime

At least $1.8 trillion illicitly flowed out of Africa between 1970 and 2009. This is far more than the external aid the continent received over the same period, and almost five times its current external debt. According to researchers, the continent also loses at least $100bn a year in this financial haemorrhage.

Illicit flows from Africa grew at an average rate of 12.1 percent per year since 1970, and that capital flight from West and Central African countries accounted for most of the illicit flows from sub-Saharan Africa.

Illicit financial flows consist of money earned illegally and then transferred for use elsewhere. The money is usually generated from criminal activities, corruption, tax evasion, bribes and smuggling.

Nigeria lost at least $250bn between 2000 and 2009. South Africa came second with a loss of at least $170bn over the same period.

Somalia loses between $800m and $1bn through illegal fishing every year.

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