Excessive accumulation of wealth by government leaders
Name(s):
Hypocritical accumulation of personal wealth by rulers of countries
Corrupt acquisition of offshore assets by heads of state
Personal greed of government leaders
Excessive salaries of government leaders
Incidence
In the case of a number of developing countries, life presidents, absolute rulers, senior civil servants, military leaders and other members of ruling elites have diverted funds intended for the acceleration of the development process (received in the form of aid grants and bilateral or multilateral loans). In many of these countries capital flight remains the greatest constraint on achievement of agricultural and commercial self-sufficiency. In 1990 the President of Zaire, who came to power in 1965, was estimated to have a amassed a personal fortune of $6 billion (including much real estate in Europe), although he only claimed $50 million. Studies by the World Bank have identified hundreds of millions of dollars unreported in the national budget of Zaire, and more gold and coffee smuggled out of the country than legally exported. Another expression of the problem in government-led countries of all persuasions, is of parliamentarians unilaterally increasing their salaries or benefits, for which the usual strength of oppositional debate is often lukewarm.
Claim
Unless all governments cooperate in making their leaders fully accountable to their people and prevail on offshore banking centres to trace, and report to competent national authorities, corruptly gained flight capital movements, new financial aid to many Third World countries, coupled with debt reduction, will not achieve the goals set.
Broader
Aggravates
Strategy(ies)
Value(s)
Type
(D) Detailed problems