Annual Derrick K Gondwe Memorial Lecture
Odious Debts and Africa’s Financial Hemorrhage through Capital Flight
Distinguiched Chair and Professor of Economics
University of Massachusetts Amherst
African countries continue to experience a steady volume of unrecorded capital outflows, exceeding the amount that they receive in foreign aid or foreign direct investment. The continent has lost a combined $1.3 trillion through capital flight from 1970 to 2015, which, including interest earnings, accumulated to $1.8 trillion by 2015. This vastly exceeds the stock of external debts owed by the continent, ironically making Africa a “net creditor” to the rest of the world. Some of the capital flight is financed by loans that were meant to fund economic development, casting doubt on the legitimacy of such debts, making them indeed odious. This hemorrhage of the African continent is a result of a combination of domestic and external economic and institutional factors that must be addressed through concerted efforts at national and global level in a genuine Global Coalition Against Capital Flight. Only then genuine development can take roots in Africa and only then international development assistance can be truly effective.
This event is free and open to the public.
Co-sponsored by Africana Studies Program, the Department of Economics, and EPACC.
Thursday, October 10 at 5:30pm to 6:30pm