The Guardian view of Zambia Tramba’s dilemma: American aid discounts dwarf us with much more Editorial

DOnly Trump’s decision to definitely 50 million dollars One year of aid to Zambia – one of the poorest countries in the world – horrific, given reason, corruption, hollow rings. There is evidence of widespread looting, but the real scandal is that the theft appears legal, systematic and driven by foreign interests. In a paper submitted to the Association of Heterogeneous Economy conference In London later this month, Andrew Fischer of the University of Erasmus Rotterdam argues that Zambia’s economy is not looted by local actors but rather through the practices of via national companies that enable dark accounting. The results of which are amazing to extract the wealth that dwarms the value of aid to help.

Blessed Zambia – or perhaps cursed – with mineral wealth. It is the second largest copper producer in Africa. The metal, the key to green energy, represents about 70 % of the country’s export profits. Nevertheless, in 2020, Zambia became the first era in the era of Africa. He only agreed to religion Restructuring With the main creditors. How did the nation become rich in natural resources very bad? Professor Fischer says this An example of the textbook From a source of low -income commodities formed by foreign capital, as it enriches export columns with multinational companies instead of the country itself. In the case of Zambia, copper may bring a foreign exchange, but many of these money flow straight.

Its most surprising discovery is a scale and hidden a capital. Disclosure of billions of dollars flowing from Zambia, hidden in payment data. These “errors and negligence” have not been marked, but they are obscured in entries that are very detailed for the investigation. in 2021 alone, $ 5 billion About 20 % of GDP – disappeared abroad, just as Zambia was lagging behind its debts. This was in addition to the $ 1.2 billion profit remittances. On the other hand, the annual American Aid amounted to only $ 250 million, or 1 % of GDP in Zambia. It is a realistic difference between calmness of help against a torrent of extraction.

Professor Fisher Links External flows to the mining giants that dominate the Zambia economy. These companies have invested billions of dollars from abroad to finance operations, but the money was left as soon as they arrived. What looks like foreign direct investment during the mining boom in the past decade, deeper drain: the profits that are restarted through financial financial flows. Numbers Unusually Great to Zambia: More than $ 5 billion in 2012, 3 billion dollars in 2015, and about $ 2 billion in 2017. These private sector flows were exceeding public audit.

Tax mining companies have always been accused in Zambia. In 2018, the tax authorities slapped $ 8 billion tax bill The first Canadian mining company for quantum minerals, which was reported later settled 23 million dollars. GlencoreThe Anglo giant left the country in 2021 after falling with the authorities. After 2023 Half of the copper was exported in Zambia to Switzerland – that is, purchased and sold by Swiss commodity merchants such as Glencore. Academics Rita Kiselling and Gregor Doppler In 2019, he noticed that such companies use transportation prices and the lack of transparency to transfer profits abroad.

Professor Fisher’s research indicates the same Legal mechanisms Work in global trade. It admits that some external flows may include the wealthy Zambian, but wonder whether they can transfer money on this range and complexity. His research exposes a form of deliberate blindness. If through patriotism companies can strip Zambia legally while donors look in the other direction, the real scandal is not a theft. It is the global economic system itself.

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