We have long been told a compelling story about the relationship between rich countries and poor countries. The story holds that the rich nations of the OECD give generously of their wealth to the poorer nations of the global south, to help them eradicate poverty and push them up the development ladder. Yes, during colonialism western powers may have enriched themselves by extracting resources and slave labour from their colonies – but that’s all in the past. These days, they give more than $125bn (£102bn) in aid each year – solid evidence of their benevolent goodwill.
This story is so widely propagated by the aid industry and the governments of the rich world that we have come to take it for granted. But it may not be as simple as it appears.
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. To get a sense for the scale of this, $16.3tn is roughly the GDP of the United States.
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.
Foreign aid from the West is literally a scam to cover up vast flows of money and resources away from the developing world and towards developed countries. It is the equivalent of the Gates’ of the world donating 0.00000001% of their daily income to charity and the media getting on their knees and fellating them for it. And, as others have said, even the absolutely paltry sums of money donated in foreign aid by the West merely ends up back in the hands of their own investors, because developing countries exist merely as debt peons to be endlessly harvested, without meaningfully developing them.
I literally have this link bookmarked for dipshits like you.
Aid in reverse: how poor countries develop rich countries
Foreign aid from the West is literally a scam to cover up vast flows of money and resources away from the developing world and towards developed countries. It is the equivalent of the Gates’ of the world donating 0.00000001% of their daily income to charity and the media getting on their knees and fellating them for it. And, as others have said, even the absolutely paltry sums of money donated in foreign aid by the West merely ends up back in the hands of their own investors, because developing countries exist merely as debt peons to be endlessly harvested, without meaningfully developing them.
This is the face of modern imperialism.