There is an enormous pool of funds that poor nations could use for development, but this money is denied to them by corruption. While most of us think dictators and corrupt governments in poor countries would be the major culprits, the most corrupt institutions are in fact multinational corporations, including some Australian companies!
It is estimated that these globe-spanning companies are responsible for about two thirds of all money lost to corruption each year (by comparison bribes and embezzlement only represents about 5% of money lost).
Christian Aid estimates that at least $160 billion in tax revenue is denied to developing countries each year through multinational tax dodging, such as the use of tax havens that stop profits remaining in the countries that the resources come from. That’s more than all the money that is given to developing countries in aid.
This is a major injustice and it can be stopped. These corporations can be held to account, regulations changed, tax havens addressed and laws improved to ensure this money stays where it should. This will enable developing countries to provide for the needs of their people.
Watch the campaign video from Micah Challenge: