LSE’s Isabella Mosselmans calls on Western governments to monitor and enforce global companies to pay the correct taxes in the countries in which they operate.
The OECD has estimated that developing countries lose an estimated 3 times more to tax havens than they receive in foreign aid each year.
Raymond Baker, the Director of Global Financial Integrity, has called it the “ugliest chapter in global economic affairs since slavery”.
If you read this article very quickly, only another 28 children will have died from hunger by the time you have finished. Developing countries lack the public resources that would provide the nutrition, healthcare and education to lift people out of poverty.
Although public opinion perceives that localised corruption in developing countries is the key cause of global poverty, sixty tax havens and the banking sectors of London and New York have much more to account for. While the World Bank estimates that corruption by government officials costs developing countries a significant US$30 billion a year – this is only 3% of the US$900 billion of public funds lost through tax evasion schemes and other illicit practices by multinational companies. Continue reading