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New reports show that the Ebola-affected countries of Liberia, Guinea and Sierra Leone lose an average of .4 billion each year to corruption, debt payments and tax evasion. Global Financial Integrity (GFI) calculates the three countries lost about .3 billion per year to corruption and tax evasion in the decade leading up to the Ebola outbreak. New World Bank data indicates the countries spent over million on debt payments in 2013, the year the outbreak began. According to the World Bank, the countries spent a total of 0 million on public health in 2012.
“Debt, corruption and tax evasion are part of why people die in West Africa,” stated Eric LeCompte, Executive Director of Jubilee USA, a religious development coalition. “The money was there to contain Ebola and save more people from preventable diseases.”
Guinea, where the outbreak began, spent more on debt payments in 2012 than it spent on public health. Guinea spent 7 million on debt payments in 2013 and 2012. According to the Financial Times, the three countries owe the International Monetary Fund (IMF) nearly 0 million. Sierra Leone spent .3 million paying off debts since the IMF announced a debt relief plan in November and will spend nearly million more before the end of the year. The three countries accrued much of their current debt burden during civil wars, dictatorships and one-party rule. US Treasury Secretary Jacob Lew brought Jubilee USA’s plan for debt relief to the November G20 meetings held in Brisbane, Australia. The G20 made a financing commitment to the three Ebola affected countries of 300 million dollars in debt relief, grants and new loans. The IMF could announce the financing plan as early as January.
“Winning debt relief and stopping tax evasion provide long term monies for healthcare and development,” said LeCompte, who serves on United Nations Expert Groups that address debt and illicit finance. “More people die from preventable diseases annually in these countries than from Ebola.”
According to GFI, developing countries lose nearly trillion each year to illicit flows. From 2003 – 2012, Liberia lost more than 0 million annually on average, while Guinea lost more than 0 million. In 2013, the G8 signed a joint declaration calling on the international community to curb corruption and corporate tax avoidance. This past August, during the White House Africa Summit, the Obama Administration announced a committee to make recommendations to address these outflows.
“There’s broad consensus that we need to keep money from flowing out of developing economies,” added LeCompte. “There’s so much the international community can do.”