TED: Meet Global Corruption's Hidden Players - 8 views
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former Soviet megalomaniacs
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Equatorial Guinea, a West African nation that has exported billions of dollars of oil since the 1990s
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vast majority of its people are living in really miserable poverty despite an income per capita that's on a par with that of Portugal
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Both Equatorial Guinea and Portugal have per capita incomes of $23,000 per year...but most Guineans are very, very poor. Only the extremely high incomes of its tiny elite boost the average up!
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When calculating income in Equatorial Guinea using a median income approach, the number is closer to $10,000 per capita.
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So it's easy to think that corruption happens somewhere over there, carried out by a bunch of greedy despots and individuals up to no good in countries that we, personally, may know very little about and feel really unconnected to and unaffected by what might be going on. But does it just happen over there?
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set up an organization called Global Witness
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I'd been speaking to lots of people there who, well, they talked about a different problem: that of a massive web of corruption on a global scale and millions of oil dollars going missing.
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I've repeatedly seen that what makes corruption on a global, massive scale possible, well it isn't just greed or the misuse of power or that nebulous phrase "weak governance." I mean, yes, it's all of those, but corruption, it's made possible by the actions of global facilitators
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He did business with global banks. A bank in Paris held accounts of companies controlled by him, one of which was used to buy the art, and American banks, well, they funneled 73 million dollars into the States, some of which was used to buy that California mansion. And he didn't do all of this in his own name either. He used shell companies. He used one to buy the property, and another, which was in somebody else's name, to pay the huge bills it cost to run the place.
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he awarded an oil block now worth over a billion dollars to a company that, guess what, yeah, he was the hidden owner of
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our international banking system
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failure of our politicians to back up their rhetoric and do something really meaningful and systemic to tackle this stuff
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but they prioritize their profits in other destructive ways too
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because an elite and its facilitators have been making millions of dollars from supporting logging on an industrial scale for many years
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the state's chief minister, despite his later denials, used his control over land and forest licenses to enrich himself and his family
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HSBC bankrolled the region's largest logging companies that were responsible for some of that destruction in Sarawak
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they're used quite a bit by people and companies who are trying to avoid paying their proper dues to society, also known as taxes
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shell companies are used to steal huge sums of money, transformational sums of money, from poor countries
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A recent study by the World Bank looked at 200 cases of corruption. It found that over 70 percent of those cases had used anonymous shell companies, totaling almost 56 billion dollars
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shell companies, they're central to the secret deals which may benefit wealthy elites rather than ordinary citizens
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in the Democratic Republic of Congo sold off a series of valuable, state-owned mining assets to shell companies in the British Virgin Islands.
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these shell companies had quickly flipped many of the assets on for huge profits to major international mining companies listed in London
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Congo may have lost more than 1.3 billion dollars from these deals. That's almost twice the country's annual health and education budget combined