Billions of pounds of aid meant for the most dependent nations ends up in tax havens, a report by World Bank economists has concluded.
The study, Elite Capture of Foreign Aid, tracked aid payments to 22 nations and found that as much as a sixth flowed into havens such as Switzerland. The “leakage” was worst in the most dependent countries, where aid accounts for as much as 3 per cent of GDP, according to the paper, published on Tuesday.
The World Bank, the largest multilateral donor, issued a statement defending the research and its efforts to stamp out corruption. Nevertheless the study, which was repeatedly delayed, will reignite the debate on Britain’s commitment to spend 0.7 per cent of GDP on aid.
For countries receiving
