NGO
Another Way (Stichting Bakens Verzet), 1018 AM
Edition
04: 02 December, 2010
01. E-course : Diploma in
Integrated Development (Dip. Int. Dev)
SECTION A : DEVELOPMENT
PROBLEMS.
Study value :
04 points out of 18.
Indicative
study time: 112 hours out of 504.
Study points
are awarded only after the consolidated exam for Section A : Development
Problems has been passed.
First block : Poverty and quality of life.
Study value :
02 points out of 18.
Indicative
study time: 57 hours out of 504.
Study points are
awarded only after the consolidated exam for Section A : Development
Problems has been passed.
First block : Poverty and quality of life.
First Block : Section 1.
Analysis of the causes of poverty. [26.50 hours]
First Block : Section 2. Services needed for a good quality of
life.
First Block : Exam. [ 4 hours each attempt]
Block 1 of Section
1. Analysis of the causes of poverty. [26.50 hours]
Part 1 :
Introduction to the causes of poverty.[06.50
hours]
02. Some factors linked with
poverty.
04. Financial leakage : food
and water industries.
05. Financial leakage :
energy.
06. Financial leakage : means
of communication.
07. Financial leakage : health
and education.
08. Financial leakage : theft
of resources.
09. Financial leakage :
corruption.
Part 1 :
Introduction to the causes of poverty.[06.50
hours]
09. Financial leakage :
corruption. (At least 30 minutes)
Look at the following slide:
09. Financial leakage : corruption, exportation of
financial means, tax havens.
Read Illicit Financial Flows from Africa : Hidden Resource
for Development, Kar D. and Cartwright-Smith D., Global Financial Integrity,
This resource includes statistical country by country
tables for
“This massive flow of illicit money out of
“Over the 39-year period [1970-2008] Africa lost an
astonishing $US 854 billion in cumulative capital flight – enough to not only
wipe out the region’s total external debt of around $US 250 trillion (at
end-December 2008) but potentially leave $US 600 billion for poverty
alleviation and economic growth. Instead, cumulative illicit flows from the
continent increase from about $US 57 billion in the decade of the 1970’s to $US
437 billion over the nine years 2000-
Adjusted, “total illicit flows from Africa over the
period 1970-2008 more than double from $US 854 billion to $US 1.8 trillion.
While this is a staggering volume of illicit outflows, it is likely to be still
higher if we were to include flows due to other illegal activities.” (p. 16)
“Developing countries lose at least $10 through illegal flight for every
$1 they receive in external assistance.” (p. 17)
Corruption.
Corruption is a
major cause of financial leakage from poor countries.
There are many facets to the fight against corruption.
Read Shah A., Corruption , Global
Issues, updated: November 07, 2010. This paper includes a good list of
references for anyone who wishes study corruption in more detail. Anup Shah
cites Dr Susan Hawley, Exporting Corruption; Privatisation, Multinationals and
Bribery, The
Corner House, Briefing 19, Sturminster Newton, June 2000 as follows: “…multinationals ….bribes are conservatively
estimated to run at US$ 80 billion a year – roughly the amount that the UN
believes is needed to eradicate global poverty”.
To fully understand the relationship between
integrated development projects under the Model and the problem of corruption,
refer to Section 6: Corruption of block 5. How project
structures solve specific problems of the course.
Local investment of profits from corruption.
You can see from the slide that local investment of
corruption revenues would not necessarily cause financial leakage from the
local area.
1. Opinion.
In which
situations would there be a financial leakage and in which situations would
there be no financial leakage ?
Is local
investment of local of corruption
revenues common or uncommon in your country ? Why ?
In case of
local investment of corruption profits, why would it lead to an unequal
distribution of wealth ?
Offshore accounts in industrialised countries.
2. Opinion.
Why would a resident in a poor country
prefer to make payments into a foreign bank rather than into a local
bank ?
Here are some
aspects you might wish to consider :
The security
of the investments..
Tax evasion.
Lack of commercial
initiatives at local level.
The illegal
character of the profits in question.
The illegal
nature of the purchases to be made, for instance arms purchases.
This problem
is by no means limited to developing countries. For a recent analysis of the
situation in the
Purchases of luxury goods abroad.
3. Opinion.
Do you know of examples of businesses and businessmen or
other persons from your country who possess goods situated abroad?
4. Opinion.
Suppose you are in the happy situation
of having financial means to invest. Where would you invest your
funds ?Why ?
Importation of luxury goods into developing countries.
A third level of financial leakage is the importation of luxury goods
into developing countries.
Warning ! Funds used for these purposes can be either legal or
illegal.
5. Research.
Which luxury goods are most commonly
imported into your chosen area?
Why are they imported there?
How much are they worth ?
How do they increase the quality of life
of the people in question?
How do they increase the quality of life
of the inhabitants of your project area ?
Banks and their investments.
6. Research.
How many inhabitants in your chosen area
have a bank account ?
How many banks are active in your
project area?
Are they part of a national or an
international group?
How many of the banks are of local
origin?
What is the turnover of local banking
activities in the project area?
7. Research.
Make a list of investments made by banks
in your chosen area..
◄ First block : Poverty and quality of life.
◄ Index : Diploma in Integrated
Development (Dip. Int. Dev)
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