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One trillion dollars per year plus lives is the cost of corruption in poor countries

Thursday, September 4th 2014 - 05:37 UTC
Full article 3 comments
Corrupt activities include the use of phantom firms and money laundering. The One report blames corruption for 3.6 million deaths every year. Corrupt activities include the use of phantom firms and money laundering. The One report blames corruption for 3.6 million deaths every year.

An estimated one trillion dollars a year is being taken out of poor countries and millions of lives are lost because of corruption, according to campaigners. A report by the anti-poverty organization One says much of the progress made over the past two decades in tackling extreme poverty has been put at risk by corruption and crime.

 Corrupt activities include the use of phantom firms and money laundering. The report blames corruption for 3.6 million deaths every year.

If action were taken to end secrecy that allows corruption to thrive, and if the recovered revenues were invested in health, the group calculates that many deaths could be prevented in low-income countries.

One describes its findings as a “trillion dollar scandal”.

“Corruption inhibits private investment, reduces economic growth, increases the cost of doing business and can lead to political instability,” the report says.

“But in developing countries, corruption is a killer. When governments are deprived of their own resources to invest in health care, food security or essential infrastructure, it costs lives and the biggest toll is on children.”

The report says that if corruption was eradicated in sub-Saharan Africa:

• Education would be provided to an additional 10 million children per year
• Money would be available to pay for an additional 500,000 primary school teachers
• Antiretroviral drugs for more than 11 million people with HIV/Aids would be provided

One is urging G-20 leaders meeting in Australia in November to take various measures to tackle the problem including making information public about who owns companies and trusts to prevent them being used to launder money and conceal the identity of criminals.

It is advocating the introduction of mandatory reporting laws for the oil, gas and mining sectors so that countries' natural resources “are not effectively stolen from the people living above them”.

It is recommending action against tax evaders “so that developing countries have the information they need to collect the taxes they are due” and more open government so that people can hold authorities accountable for the delivery of essential services.

Categories: Economy, Politics, International.
Tags: corruption.

Top Comments

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  • ilsen

    Welcome to Venezuela - A Socialist Paradise!

    Sep 04th, 2014 - 09:00 am 0
  • welshyakusa

    Corruption starts at the top, Why would politicians stop corruption???? its cutting there own throats.............Its a career choice.....Teacher: “hey little boy what do you want to be when you leave school”
    Little Boy: A Polition Miss“
    Teacher: ”Why“
    Little Boy: ”To make laws for the poor people miss“
    Teacher: ”Thats wonderful“ and then what will you do.
    Little Boy: ”Well miss then they will vote for me and i will become the President“
    Teacher: ”and after you become President what will you do????'
    Little Boy: “I will be corrupt and steal lots of Money”


    Sep 04th, 2014 - 10:42 am 0
  • ChrisR

    I am left wondering if the contributors:

    1) Have any direct knowledge and evidence of the corruption, and if so why aren't they acting upon it?

    2) If the trillion dollars is an actual figure garnered from evidence or a soundbite for the press. The reason is simple, it's a wonderfully round figure and so big that most people cannot comprehend what it means, but it sounds good.

    These people should start with the likes of the presidents of these developing countries and with TMBOA in the failing country that is Argentina.

    Sep 04th, 2014 - 09:52 pm 0
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