An internal World Bank report reveals that much of the development aid intended for the African continent in particular is diverted to offshore financial centres.
This development aid amounted to 163 billion dollars in 2017 and has increased by 50% in ten years. Diversion to tax havens is estimated at 7.5% of total World Bank disbursements. Worse still, according to the report, “the greater the dependence on development aid, the greater the share diverted. In some countries, it is estimated to reach 15%”.
Another factor that weighs on the economies of developing countries is that the International Monetary Fund estimates the amount of tax evasion by multinational corporations in developing countries at $200 billion a year.