Give & Take – Mostly Take?
The basic idea behind 5:50:500 is simple:
Every year, for the past 10 years aid given to the Developing World by non-governmental agencies (voluntary aid) has amounted to at least $5 billion. Estimates vary from a low of $5 billion to a high of $15 billion, so we have chosen the lower figure.
Every year for the past 10 years aid given to the Developing World by governments (official
aid) has amounted to at least $50 billion. The actual figures vary considerably year by year
from $50 billion in 2000 to $105 billion in 2007, so we have chosen the lower figure.
2007 was $792 billion, the estimate for 2008 $895 billion, so we have chosen the lower figure.
HOW 5:50:500 WORKS:
How five fifty five-hundred works
- Interest payments on a total debt of some $375 = $34 BILLION MINIMUM
- The cost to the Developing World of unjust trade barriers = $130 BILLION MINIMUM
- The cost of Ôtrade related intellectual propertyÕ issues = $40 BILLION MINIMUM
- The cost of corruption and capital flight = $193 BILLION MINIMUM
- The cost of the brain drain = $100 BILLION MINIMUM
- TOTAL = $497 billion minimum
The figures change from year to year but in 2007 (according to OECD and IMF figures), the actual ratio was 8:105:790. We have chosen to use the ratio 5:50:500 because it is on the conservative side of the estimates and because it graphically captures the degrees of magnitude involved in the unjust relationship between the ‘Rich’ and ‘Poor’ worlds.
So, in short, for every $55 billion transferred to the Poor World by the Rich World, $500 billion is transferred in the opposite direction.