London Daily

Focus on the big picture.
Wednesday, Jul 29, 2026

Corruption blights the developing world but the US and Europe are accomplices

Corruption blights the developing world but the US and Europe are accomplices

State capture is growing on every continent but only because the west helps to launder and hide money stolen by kleptocrats
Last week, John Penrose, Boris Johnson’s anti-corruption tsar, resigned in protest at his leader’s apparent breach of the ministerial code during Partygate. In January, Lord Agnew resigned as a Treasury minister, angered at the government’s negligence in allowing fraud to occur in its Covid contracts and loans.

Both were standing up against corruption through bad governance and poor leadership.

Last month, as part of the launch of its excellent publication Understanding Corruption, the University of Sussex’s Centre for the Study of Corruption held an event entitled Breaking Free from State Capture, featuring a keynote address by Mo Ibrahim.

The Sudanese-British telecoms billionaire is a passionate advocate and campaigner for good governance and better leadership through his foundation, charged with making a difference in Africa, where state capture and crony capitalism have enfeebled the continent for decades.

Corruption, defined as the abuse of entrusted power for private gain, is a complex and nuanced subject. Its consequences are deeply significant. It is a barrier to equitable and sustainable development, and it diverts resources from the poorest to the rich and the restlessly ambitious, creating inequity, exclusion and inequality.

It deters foreign investment and distorts public expenditures. It is pervasive, deleterious and often likened to water, as it is seen as unstoppable, difficult to contain and always finds a way around barriers. It permeates our political and legal institutions and trickles down to the bedrock of our society, manifesting in fraud, bribery, extortion, embezzlement, cronyism and nepotism.

The word “corruption” can evoke images of past world leaders such as Mohammed Suharto, Ferdinand Marcos, Mobutu Sese Seko, Slobodan Milosevic, Jean-Claude Duvalier, Alberto Fujimori or Arnoldo Alemán. More recently it can conjure up images of Nicolás Maduro, Isabel dos Santos, Vladimir Putin and Kim Jong-un.

Clearly, corruption does not have a colour, gender or race. It has a credo though: power, greed and a total absence of integrity and accountability.

One could easily also come to the conclusion that corruption only occurs in developing countries. An understanding of the mechanics of illicit financial flows will change that opinion. Corruption facilitates the business of criminality that enriches actors through drug and human trafficking, money-laundering and financing terrorism.

This financial network, enabled by lawyers, accountants, estate agents and others, stretches through the Americas and the Caribbean, eventually terminating in the US, EU, UK and its territories. These financial structures allow kleptocrats to easily hide the proceeds of their corruption.

State capture is a form of grand corruption and refers to systemic political corruption in which private interests significantly influence formation of a state’s policies and laws to their own advantage. These captors, through their personal connections to the political elite, gain a long-term economic stranglehold, not just by changing the rules but by the compounding over time of their interests, power and wealth.

Over the last few decades, state capture has manifested in countries including Bulgaria, Hungary, Brazil, Colombia, Mexico, Angola, South Africa, Turkey and Malaysia. That is evidence that corruption does not just occur on any one continent.

Capture can take place when a small group has unfathomable influence over policy formation. Consider the National Rifle Association in the US where, even in the face of school shootings, they continue to block policy on gun ownership.

Capture can also be a group of politicians in the same party, educated at the same university, stamping their elitist ideology on a country, closing ranks when there are allegations of corruption.

Ibrahim criticised the mismanagement of both natural and human resources, noting that more than 600 million African people were without electricity, which affects their quality of life, business and education. He asked and answered the question that has always been a conundrum: why is Africa so poor while it possesses so many natural resources?

He laid the blame squarely on corruption – aided by bad governance and poor leadership but more so by illicit financial flows entrenched in the US and Europe. He quoted the UN’s estimate that this amounts to more than $89bn (£75bn) a year – roughly 3.7% of Africa’s GDP – as money-laundering in the US and Europe enables the proliferation of corruption, supporting criminals and dictators.

He also outlined how corporate practices need to be addressed through better governance. He singled out big corporations such as Starbucks, Apple and Google, which have all had tax avoidance schemes investigated. He omitted Meta, Microsoft and Amazon.He lamented the dire need for registers of beneficial ownership of companies, previously shrouded in secrecy but now suddenly under scrutiny in tracing and freezing assets of Russians. He omitted laws to promote transparency of party financing and lobbying, as called for by Penrose.

Ibrahim ended with a declaration that corruption needed to be confronted in Westminster and Washington before it could ever be dealt with effectively in Africa. The world needs more people like Mo Ibrahim.
Newsletter

Related Articles

0:00
0:00
Close
Trump says Israel ‘would not survive’ without US
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Badenoch Offers Tory Votes to Keep Serious Offenders in Prison
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
Another AI Genius Left the United States — and Silicon Valley Is Starting to Worry
Shein Reports $99mn Loss as Trade Barriers Test Low-Cost Model
CXMT Gains 466% in China’s Biggest IPO Since 2010
Amazon Seeks Approval for 5,105-Satellite Mobile Network
Burnham Puts School-to-Work Reform at Centre of Welfare Strategy
Johnson & Johnson Agrees to $5.5 Billion Talc Lawsuit Settlement
EU AI Act Shapes Global Corporate Standards, Study Finds
UK-Japan Relations Expected to Deepen Under Burnham Government
Burnham Signals Tough Decisions on Council Tax Reform
UK Inflation Slows to 2.6% in June
Bank of England Holds Interest Rates at 3.75%
Prime Minister Burnham Opens Talks With Business Leaders on Economic Growth
Government Launches 'Number Ten North' to Drive UK Devolution
Labour Regains Poll Lead After Burnham's First Weeks in Office
Prime Minister Burnham Rules Out Early UK General Election Before 2029
Burnham Rules Out Replacing Council Tax and Stamp Duty
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
The Burnham government is seeking to establish its credibility through ambitious social care reform while maintaining fiscal discipline and public confidence in the National Health Service. Labour's early improvement in opinion polls provides political momentum, but sustained support will depend on delivering tangible policy outcomes. Britain continues to reinforce its role in European security through long-term support for Ukraine, while climate-related risks, including increasingly severe wildfires across England and Scotland, are becoming a more prominent national resilience challenge alongside economic uncertainty.
United Kingdom Economy Remains Exposed to Global Energy Risks
Prime Minister Dismisses Calls for an Early General Election
Scottish Wildfires Continue to Stretch Emergency Services
United Kingdom Faces Rising Wildfire Risk as Heatwave Continues
Lower Oil Prices Ease Inflation Concerns and Support Financial Markets
Financial Conduct Authority Launches Consumer Campaign on Car Finance Compensation
Government Prioritises Employment Over Benefit Cuts in Welfare Reform Plans
Prime Minister Rules Out Sweeping Property Tax Changes Before Autumn Budget
AstraZeneca Beats Expectations as Cancer Medicines Drive Strong Profit Growth
Labour Regains Narrow Polling Lead After Burnham's First Week in Office
United Kingdom Reaffirms Long-Term Commitment to Ukraine Under Burnham Government
Prime Minister Andy Burnham Makes Social Care Reform the First Major Test of His Government
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
Autopsy Finds No Violence in Death of Epstein-Linked Model Scout
Indian Education Minister Resigns After Cockroach Youth Protests
California Desert Data-Centre Plan Stalls as Water and Power Disputes Mount
Northern Ireland Border Security Tightened After Military-Grade Explosive Interception
British Hospitality Sector Targets Summer Visitors Through Regional Promotions
England River Access Debate Intensifies After New Data Shows Limited Public Access
Royal Navy Strengthens Maritime Vigilance Amid Rising Security Concerns
UK Education Department Expands Mental Health Support for Young People Entering Work
UK Tourism Industry Launches Summer Campaigns to Boost Domestic Travel
North England Transport Plans Advance to Support Industrial Growth
Financial Markets Watch New Government’s Economic Strategy as Investors Assess Fiscal Risks
Royal Navy Continues Monitoring Russian Naval Activity Near UK Waters
×