Aid in reverse: how poor countries develop rich countries

Aid in reverse: how poor countries develop rich countries, was published in The Guardian on January 14, 2017, and was written by Jason Hickel. In that article, among other things we learn the following (follow the links to the original reports):

The US-based Global Financial Integrity (GFI) and the Centre for Applied Research at the Norwegian School of Economics recently published some fascinating data. They tallied up all of the financial resources that get transferred between rich countries and poor countries each year: not just aid, foreign investment and trade flows (as previous studies have done) but also non-financial transfers such as debt cancellation, unrequited transfers like workers’ remittances, and unrecorded capital flight (more of this later). As far as I am aware, it is the most comprehensive assessment of resource transfers ever undertaken.

What they discovered is that the flow of money from rich countries to poor countries pales in comparison to the flow that runs in the other direction.

In 2012, the last year of recorded data, developing countries received a total of $1.3tn, including all aid, investment, and income from abroad. But that same year some $3.3tn flowed out of them. In other words, developing countries sent $2tn more to the rest of the world than they received. If we look at all years since 1980, these net outflows add up to an eye-popping total of $16.3tn – that’s how much money has been drained out of the global south over the past few decades….

What this means is that the usual development narrative has it backwards. Aid is effectively flowing in reverse. Rich countries aren’t developing poor countries; poor countries are developing rich ones.

Read further here.

 

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About Maximilian C. Forte

I am a professor of anthropology at Concordia University in Montreal, Canada. My areas of research and teaching interest are centered in Political Anthropology, with a focus on imperialism, neoliberalism and globalization, nationalism, democracy, and the international political economy of knowledge production.
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