On the advice of the monitors, I have reposted this question on Economics SE.

According to the Guardian, rich Western countries drain large amounts of money from poor countries, much more than they give in development aid.

If we add theft through trade in services to the mix, it brings total net resource outflows to about $3tn per year. That’s 24 times more than the aid budget. In other words, for every $1 of aid that developing countries receive, they lose $24 in net outflows. These outflows strip developing countries of an important source of revenue and finance for development. The GFI report finds that increasingly large net outflows have caused economic growth rates in developing countries to decline, and are directly responsible for falling living standards.

Aljazeera gives a similar statement.

I would like to know in what way the money is ‘drained’, if this is illegal and if this is indeed ‘directly responsible for falling living standards’.

  • Comments have been moved to chat; please do not continue the discussion here. Before posting a comment below this one, please review the purposes of comments. Comments that do not request clarification or suggest improvements usually belong as an answer, on Skeptics Meta, or in Skeptics Chat. Comments continuing discussion may be removed.
    – Oddthinking
    Commented Oct 19, 2023 at 14:06
  • Why was this closed? Seems like a reasonable question
    – CJR
    Commented Oct 19, 2023 at 23:19
  • @CJR: see chat. Commented Oct 20, 2023 at 0:11
  • 1
    @CJR: I explain here starting "I closed the question because it seems to conflate several concepts (as does the original article)."
    – Oddthinking
    Commented Oct 20, 2023 at 2:07
  • I edited the question. Now it is not focused on if money is drained, but instead on the matter wherein money is drained.
    – Riemann
    Commented Oct 20, 2023 at 9:35


Browse other questions tagged .