The poorest countries have lost just over $2 for every $1 gained since 2008, with illicit financial flows, profits taken out by foreign companies, debt repayments and lending to rich countries responsible for most of the outflow.
A report, State of Finance for Developing Countries, published on Thursday by theEuropean Network on Debt and Development (Eurodad), said lost resources – money that should have been invested but instead left the country – accounted for more than 10% of gross domestic product (GDP) for developing countries since the 2008 financial crash.
These countries are losing twice as much as they gain through aid, investment, charitable donations and remittances.
“Eurodad’s been saying for many years that more money flows out of developing countries than goes in, but the scale of it is incredibly shocking,” said Jesse Griffiths, director of Eurodad and the report’s author. “When you compare these lost resources to the size of the economies, it’s a huge proportion of their income that they’re losing.”