Donald Trump's decision to cut $50 million in aid to Zambia is criticized, as issues of corruption are linked instead to foreign corporate practices and large-scale capital flight. Andrew Fischer's research reveals that Zambia's wealth, primarily from copper exports, is largely extracted by multinationals. Despite abundant resources, Zambia defaulted on debt in 2020, showcasing the paradox of wealth without prosperity. With billions disappearing undetected, Fischer highlights the failure of national economic systems to benefit locals, emphasizing the stark disparity between aid received and wealth extracted.
In a paper presented to the Association for Heterodox Economics, Andrew Fischer argues that Zambia's economy is being plundered not by domestic actors but by transnational corporate practices.
Prof. Fischer says Zambia’s situation is a textbook example of a low-income commodity exporter shaped by foreign capital, where export booms enrich multinationals rather than the country itself.
He uncovered billions flowing out of Zambia, hidden in balance-of-payments data, with $5bn disappearing offshore in 2021 alone, adding to the structural problem with debt.
This analysis highlights the stark contrast between the limited aid Zambia receives and the massive capital flight, suggesting that foreign interests, not local corruption, are the primary issue.
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