Africa: States of Independence – the Scramble for Africa

Posted on the 02 December 2013 by Therisingcontinent @Ambrosenz

“…The continued diversion of minerals is not the only exploitative practice. Today Africa is the largest recipient of external aid in the world. A continent where half of the population survives on less than 1$ a day, but for every 1$ of aid coming in 10$ are lost through illegal capital heading out,” indicates Al Jazeera’s commentator in the documentary.

“437 billion $ have left African countries between 2000 and 2008; they left illicitly, secretly, illegally. And much of that has flooded into tax heavens owned by European countries, Britain particularly, and so the ordinary people of Africa haven’t benefited from this last decade which has been a very good decade for Africa economically. But when you go there you still see people as poor as ever,” explains Richard Dowden, Director of the Royal African Society.

“Under the shadow of financial system built on the ruins of colonialism, foreign banks and multinationals working in Africa avoid paying taxes. Anonymous trust accounts, fake foundations, money laundering, tax heavens, and trade mis-pricing all go unchecked. Since 1970, an estimated 854 billion $ has been lost, enough to wipe out external debt. And has also left 600 billion $ more for development. The financial rewards can be traced back to those countries proudly bailing out aid depending African countries: a striking parallel to the colonial story. Also echoing the past, China is entering the scene once monopolized by Europe, opening up options for African commerce,” continues explaining Al Jazeera.