Nick Dearden statement on Africa: Africa is not poor,we are stealing it wealth.
In his article "Africa is not poor, we are stealing its wealth," Nick Dearden challenges the prevailing narrative that Africa is inherently impoverished and in need of aid. Instead, he argues that the continent is rich in resources, but its wealth is systematically extracted by external entities, leaving its people in poverty.
Dearden highlights that sub-Saharan Africa is a net creditor to the rest of the world by over $41 billion annually. While approximately $161 billion flows into the continent each year through loans, remittances, and aid, about $203 billion exits. This outflow includes $68 billion lost to tax evasion by multinational corporations that shift profits to tax havens, $30 billion in repatriated profits by these corporations, and $29 billion stolen through illegal activities such as logging, fishing, and wildlife trade.
The exploitation extends to environmental damages, with an estimated $36 billion owed to Africa due to the adverse effects of climate change—a crisis largely caused by industrialized nations. Despite contributing minimally to global emissions, African countries bear significant consequences, hindering their development prospects.
Furthermore, Dearden points out that loans provided to African governments often lead to unmanageable debt burdens. For instance, Ghana allocates 30% of its government revenue to debt repayments, servicing loans that were frequently extended under speculative terms and high-interest rates. Such financial obligations divert resources away from essential public services and infrastructure development.
The accumulation of wealth by a small elite within Africa exacerbates the situation. Approximately 165,000 wealthy Africans hold combined assets of $860 billion, with a significant portion—around $500 billion—stored in offshore tax havens. This capital flight deprives African nations of critical funds that could otherwise be invested domestically to promote economic growth and reduce inequality.
To address these challenges, Dearden advocates for systemic changes rather than increased aid. He calls on Western governments to cease policies that compel African nations to privatize their economies and open markets to unfair competition. Additionally, he emphasizes the need for African countries to have the autonomy to regulate foreign investment and corporate activities within their borders. Combating tax evasion by multinational corporations and shutting down tax havens are also critical steps toward ensuring that Africa's wealth benefits its people.
In conclusion, Dearden urges a shift in the global perception of Africa—from viewing it as a continent in need of charity to recognizing it as a region whose wealth is being extracted. By acknowledging and addressing the mechanisms of this exploitation, the international community can support Africa in reclaiming its resources and fostering sustainable development.
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