Monday, December 28, 2015

Why Africa Isn't Rising - Bloomberg View

Why Africa Isn't Rising - Bloomberg View



...Billions of dollars in oil revenues are also a tempting pot of money for bent politicians. One 2012 report said corruption had swallowed up$37 billion worth of Nigeria’s oil money over the last decade. That surpasses the annual economic output of more than half the nations in Africa as well as Nigeria’s annual federal budget.



Such corruption has other toxic effects. Dirty money from bribes and kickbacks has to be laundered, and because those doing the cleaning don't care so much about profit or productive investment, their infusions of cash distort the value of assets...
...Their looting depends on an all-too-willing cast of outside partners, whether Western mining and oil companies that plunked down bribes and abetted massacres, shady Israeli middlemen or shell companies in the British Virgin Islands...
...If Burgis's book were to be made into a movie, though, the star villain would have to be Samuel Pa, the bespectacled, bearded Zelig behind some of the continent’s most dubious recent resource deals. Over the course of several decades, Pa parlayed the connections he made as a Chinese intelligence operative and arms merchant into a sprawling, secretive consortium based in Hong Kong known as the 88 Queensway Group, not to mention a spot on the U.S. Treasury’ssanctions list...Even China may see the writing on the wall. A few months after Burgis's book came out this year, he reported that Pa had been detained in one of China's deepening anti-corruption probes.

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