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Obstacles to progress

Distortions

In Africa, on average, extractive export underinvoicing is equivalent to 16 per cent of
merchandise exports of the commodities covered in this report

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Capital flight, which captures trade misinvoicing and other balance-of-payment

transactions, was estimated at $88.6 billion, on average, during 2013–2015 or around 3.7
per cent of African GDP. Capital flight between 2000–2015 was $836 billion or 2.6 per

cent of GDP. In terms of capital flight, the largest positive absolute outliers are Nigeria
($41 billion), Egypt ($17.5 billion) and South Africa ($14.1 billion), on average, during
2013–2015. “

"Tackling Illicit Financial Flows for Sustainable Development in Africa,". 305
ECONOMIC DEVELOPMENT IN AFRICA (2020)
UNCTAD

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“ But data compiled by the Guardian shows that the vast majority of DfID's contracts are
going to companies based in the UK and that the share going to UK firms seems to have

risen in recent years. “
"Why Is so Much UK Aid Money Still Going to Companies Based in Britain?" 306
The Guardian (September 2012)

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Donor Self Interest

“ Countries often provide Foreign Aid to enhance their own security. Thus, economic
assistance may be used to prevent friendly governments from falling under the influence
of unfriendly ones or as payment for the right to establish or use military bases on

foreign soil. Foreign Aid also may be used to achieve a country's diplomatic goals,
enabling it to gain diplomatic recognition, to garner support for its positions in

international organizations, or to increase its diplomats' access to foreign officials. Other
purposes of Foreign Aid include promoting a country's exports (e.g., through programs
that require the recipient country to use the aid to purchase the donor country's

agricultural products or manufactured goods) and spreading its language, culture, or
religion. Countries also provide aid to relieve suffering caused by natural or man-made

disasters such as famine, disease, and war, to promote economic development, to help
establish or strengthen political institutions, and to address a variety of transnational
problems including disease, terrorism and other crimes, and destruction of the

environment.