Skip to Content

World Bank headquarters in Washington, DC. Wikipedia

World Bank: Aid to poor countries diverted to tax havens

The average “leakage rate” of aid sent to poor countries is estimated at around 7,5 percent. A study into large-scale corruption has finally been revealed after rumours that its suppression led to the resignation of the World Bank's chief economist.

Published: February 22, 2020, 10:52 am


    The paper, commissioned by the Bank and written by one of its own economists along with two academics, found that as much as one-sixth of all international aid ends up in tax havens, indicating the potential scale of corrupt officials stealing the funds meant for the poor.

    The document was revealed by the British magazine The Economist. The aid released by the World Bank for the poorest countries actually trigger transfers of funds to offshore accounts in tax havens.

    The World Bank estimates that 7,5 percent of the aid paid is eventually diverted. A study looked at 22 of the poorest countries, located mainly in Africa, which received annual payments between 1990 and 2010 from the World Bank, equivalent to at least 2 percent of their GDP.

    “The aid diverted by the politicians in power, the bureaucrats and their acolytes is consistent with all of the patterns observed,” explained the study, adding that the effects “are greater for the most corrupt countries”.

    The publication of this study has provoked debates within the financial institution. According to this publication, this is one of the reasons for the resignation of the chief economist of the World Bank, Pinelopi Koujianou Goldberg.

    Some corrupt officials may be skimming as much as fifteen percent after the study found that flows of capital from the 22 of the world’s poorest countries to countries known for banking secrecy like Switzerland and the Cayman Islands increased within a financial quarter of payments of World Bank aid being made.

    No individual acts of wrongdoing were identified however, but its authors noted that the absence of a sudden spike in transfers in more transparent jurisdictions strongly suggested aid money was being stolen.

    “This is consistent with some kind of capture: That the people who control aid flow have found a way to divert some of that money to their personal accounts,” Professor Niels Johannesen of Copenhagen University told British daily The Telegraph.

    Consider donating to support our work

    Help us to produce more articles like this. FreeWestMedia is depending on donations from our readers to keep going. With your help, we expose the mainstream fake news agenda.

    Keep ​your language polite​. Readers from many different countries visit and contribute to Free West Media and we must therefore obey the rules in​,​ for example​, ​Germany. Illegal content will be deleted.

    If you have been approved to post comments without preview from FWM, you are responsible for violation​s​ of​ any​ law. This means that FWM may be forced to cooperate with authorities in a possible crime investigation.

    If your comments are subject to preview ​by FWM, please be patient. We continually review comments but depending on the time of day it can take up to several hours before your comment is reviewed.

    We reserve the right to del​ete​ comments that are offensive, contain slander or foul language, or are irrelevant to the discussion.


    Bolton: Trump wanted to grant white South African farmers asylum

    WashingtonNeocon John Bolton recounts in his new book how he was dismayed that President Trump in May 2019 was less interested in discussing attacks on Iran than in the terrible treatment that white farmers in South Africa are faced with.

    Covid-19 cases spike in South Africa, an outlier on the continent

    PretoriaSouth Africa is among the top five countries in the world in terms of its murder rate, and in the top three for rape and child rape. On the African continent, it is also now the country worst affected by the Covid-19 pandemic.

    The three non-governmental private contributors to the WHO

    Of the seven largest contributors to the World Health Organization, three are non-governmental private actors. The largest, which gives more than any nation, is the Bill & Melinda Gates Foundation. The third largest donor is the lesser-known GAVI, which is an abbreviation for the The Global Alliance for Vaccination and Immunization.

    ‘My eye was gouged out by the Libyan Interior Minister’

    After the terrible ordeal of a ex-detainee Ragab Rahil Abdel-Fadil Al-Magarhy in the Mitiga secret prison in Libya, an appeal was made to the United Nations. 

    Is US ‘evidence’ of Russian jet fighters in Libya real or fake?

    A number of media outlets published reports which contained statements that Russian MiG-29 fighters and Su-24 front-line bombers were sent to Libya from Hmeimim airbase in Syria. These reports, reminiscent of a planned media campaign, culminated in a statement by the Africa Command of the US Armed Forces (AFRICOM).

    Erdogan’s Africa Corps

    The Turkish Parliament adopted a motion at an emergency session on January 2, authorising the government to send Turkish troops to Libya for one year.

    Two Tu-160 ‘White Swans’ create a stir in Pretoria

    PretoriaOn Wednesday 23 October, two Russian strategic Tupolev Tu-160 bombers arrived in South Africa after a record flight of more than 11 000 kilometers that lasted over 13 hours.

    South Africa: ANC continues to ignore farm murders

    PretoriaIt is a staggering statistic but the South African government insists that it is not happening: During September 2019, there were forty-six farm attacks and seven farm murders, whilst one farm attack was averted.

    Mugabe’s bloody reign of terror in Zimbabwe

    Robert Mugabe died in a hospital in Singapore on Friday, according to sources. He was surrounded by family including his wife, Grace. He had been receiving treatment in Singapore since April.

    South African State Pathologist found guilty of stealing body parts

    JohannesburgA black South African State Forensic Pathologist was found guilty of stealing body parts of a white woman from a mortuary.

    Go to archive