Lack of Government Transparency Fosters US Complicity in Africa’s Underdevelopment: HRRG demands that the US return to Africa what is rightfully hers!
Human Rights Reporters
3 min read
It is 2022, and despite hard-fought independence and liberation, Africa is still being violated and pillaged in despicable ways. One would think that Russia’s overlord, President Vladimir Putin, would be solely to blame for this parasitic hording of African funds in his attempt to consolidate power and resources. The monster behind the curtain, however, remains much of the Global North as it was previously before African independence.
According to the United Nations Conference on Trade and Development, for years, nearly $90 billion of African resources are lost to the Global North in Illicit Financial Flows, or IFFs. It isn’t just the Russians — U.S.-based corporations and others throughout the Global North are also complicit in this theft.
But at this point, as far as we can tell, curbing these flows is not on the Biden administration’s agenda for the U.S.-African Leaders Summit, which will take place this December. This seems to be at odds with President Biden’s commitment to “reinforce the U.S.-Africa commitment to democracy and human rights,” “advance peace and security,” “respond to the climate crisis,” and “amplify diaspora ties.”
There are currently no consequences for companies based in the United States that participate in IFF activities. In other words, they profit from corruption while remaining unpunished. Human rights are always violated as a result of IFF activity, and the worst part is that no single entity is held accountable. As a result, the perpetrators walk free and are emboldened to continue the cycle of violent pillaging.
Human rights violations manifest as a lack of fair and adequate compensation during involuntary relocations and a lack of access to remedy for rights violations, as well as harassment, threats, and prosecution of environmental human rights defenders.
People in these plundered communities do not have a voice. They face harm to local biodiversity, loss of their livelihoods, and a lack of meaningful benefits. The U.S. can do much to mitigate the damage, and we can start with meaningful preparation for the upcoming summit.
A call to arms for concerned citizens and other stakeholders demands that IFF activity be countered through greater transparency from our governments and leaders; after all, they are complicit as well if they stand by and watch their states be robbed year after year. The financial mechanisms that enable IFFs are complicated. They are typically the result of commercial tax evasion, trade mis-invoicing, abusive transfer pricing, and criminal activities such as drug trafficking, human trafficking, illegal arms smuggling, bribery, and theft by government officials.
The impact? Commodities are undervalued at the extraction site and then declared at full market rate on import. Illegal gold exports from Sudan to South Africa end up in Middle Eastern gold markets, and then Russia. Ill-gotten gains sit in tax havens around the world. The losses are breathtaking and heartbreaking, as they represent revenue that should be invested in sustainable development in Africa.
IFFs drain community revenues, which the U.S. government then tries to plug with assistance and alleged “foreign aid”. A more sustainable model would be to help Africa via policies to regulate the IFF-related activity of U.S.-based corporations, transnational agreements that honor human rights, and support for global rules designed to stop IFFs from impoverishing entire communities.
It is time for us to do our part. We can do better.
The Biden/Harris administration can start in December at the African Leaders Summit.
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