The World Bank working paper named ‘Elite Capture of Foreign Aid – Evidence from Offshore Bank Accounts’, which was finally released yesterday is a devastating read. Not because of the facts in it, but because of the extent of the misuse and theft of aid money. The World Bank are now proving by small samples how much of their loans, grants and funds, which is given by donors to the WB, which happens to be moved to tax havens by the regimes that needs it. That is eating of the plate of the poorest and living lavish on others people’s dime.
Just in the Annex, the truth really comes forward, where it is only a small samples, but showing the distasteful enterprise still. Like from table one. You can see that a certain amount of African countries have taken out huge funds into havens deposits and non-haven deposits.
The report explains this about the table one: “The table shows the 22 countries in our main sample and presents summary statistics for the main variables in our analysis. The sample includes all countries for which annual disbursements from the World Bank are equivalent to at least 2 percent of annual GDP on average. Sample mean is the average of the 22 countries in the sample. Annual WB aid (% of GDP) is annual disbursements from the World Bank as a fraction of annual GDP. Annual ODA aid (% of GDP) is annual Official Development Assistance (ODA) from all sources as a fraction of annual GDP. Haven deposits is foreign deposits held in the 17 countries classified as havens. Non-haven deposits is foreign deposits held in the countries not classified as havens” (World Bank Feb 2020).
|Nation||Haven (million USD)||Non-Haven (million USD)|
|Sao Tome and Principe||4||8|
When you add into the A6 Table of the modestly aid-dependent countries. You see yet more African countries, where the money a flowing out of the coffers. Where surely not all aid is going where its supposed too.
The report explains table A6 like this: “The table shows the 24 countries for which annual disbursements from the World Bank are between 1% and 2% of annual GDP on average. is the average of the 24 countries in the sample. Annual WB aid (% of GDP) is annual disbursements from the World Bank as a fraction of annual GDP. Sample mean is the average of the 22 countries in the sample. WB aid disbursements is annual disbursements from the World Bank as a fraction of annual GDP. Annual ODA aid (% of GDP) is annual Official Development Assistance (ODA) from all sources as a fraction of annual GDP. Haven deposits is foreign deposits held in the 17 countries classified as havens. Non-haven deposits is foreign deposits held in the countries not classified as havens” (World Bank Feb 2020).
|Nation||Haven (million USD)||Non-Haven (million USD)|
|Central African Republic||18||53|
|Democratic Republic of Congo||910||93|
Without going into deep technicalities of these operations, neither how the World Bank came through these numbers. We can see there is a staggering amount of funds that disappear and goes missing. Which was supposed to go to development or directly to support the state functions. Which happens to end up in tax-havens, surely by someone closely associated with the state or heads of state. Since, these sorts of amounts couldn’t have left the nations without the approval of the executive or head of state.
We can also clearly see, that some aid is directly feeding the rich and keeping tax-havens alive. Giving them financial stimulus and also covering the expenses of the elites in the respective places. There is certainly a mismanagement and a need for more oversight from the World Bank. But also more mechanisms to stop the misuse of aid. If it is supposed to help and not just create a very vastly elite in the nation in question. Because, with this sort of operations, they have clearly achieved that. Peace.
Alassane Ouattara should remember how he got into power in 2011, as the contested elections of 2010 gave way for him. That because the international pressure and the support for your place got in order. This is why he has had the pivotal role and been the President since 2011. His now going into his third term and pushing the same levels of dishonest elections as his predecessor.
Laurent Gbagbo was the elected President since 2000. A man who struggled a few coup d’etat’s, but that doesn’t stop the fact. That Gbagbo used his place in position and the role of Head of State to have the ability to circumvent an lost election. Which he did in 31st October 2010. That was his third election and was stretching his time in office.
Now Ouattara is trying to do the same. Guillaume Soro, the former Prime Minister is trying to be a viable candidate in the next presidential election. However, his banned and stopped by the authorities. While Ouattara is saying there is no other viable candidates and even as his ageing his the one who can stand yet another time.
It seems like Ouattara seems to forget why people had sympathy with him. That was because he wasn’t power-hungry nor a seemed like someone who wanted to be like Gbagbo. But now he proves that powers corrupts and he doesn’t want to let go.
Ouattara had to use violent means to get his victory validated. A week-long battle for Abidjan continued the bloodshed. Until the fall of Gbagbo, also the use of pro-militia to fight for his incumbency. Seemingly, Ouattara doesn’t want this against himself. But if he tries to overstay.
Who doesn’t say Soro get people pro-him and start the battle, if the state rigs the election and secure a third term. Just like Gbagbo tried back-in-the-day. He was called everything and had to serve time in Europe and charged at the International Criminal Court (ICC). Therefore, Ouattara must have thought his nemesis be gone.
Certainly, Ouattara thinks its wise to bar Soro from participating and joining the elections. Though, it only shows that his not prepared for successor, just like his predecessor. They are alike and the President hasn’t learned from his past. That is why he plans to run again and have a third term. Which would be the continuation since he was sworn in 2011.
Gbagbo had suspended the constitutional powers and suspended the elections between 2005 to 2010. Which in the end lead to the end of his reign in 2011. Just like his was secured as a former Prime Minister in 1999 and voted in 2000. Than he was supposed to have an election in 2005, but that happen later in 2010, which he lost to a previous Prime Minister.
Now Ouattara does what he can to stop a previous Prime Minister from running against him in October 2020. Soro should be able to run. That would only make sense, unless Ouattara is afraid of losing against another former Prime Minister. Which it seems like here.
Ouattara will make Soro look like a criminal, just like he did to Gbagbo too, but Ouattara also used violence and armed forces to get the power after 2010. Therefore, the President should have the sense of letting other run and not trying to capture all power. Nevertheless, don’t expect that he will give way to others.
We are now seeing a man who wanted to teach Gbagbo a lesson, maybe needs the same lesson. As his not indispensable. Ouattara needs to re-thing his strategy and give way. Maybe even try to find someone suitable to run instead of himself. But that means to answer for his time in office, which he most likely not want to do. As the fear to step down, as the consequences of doing so are unknown. That also, that no one before he stepped down and all has left power by the biggest guns. However, it should soon be time for someone to flee office like gentlemen and not like warriors. Drink a cup of tea and not buy more ammunition. Peace.