Saturday, September 17, 2005

International Development: East African countries earn $20 billion annually from narcotics

I have put this under the "International Development" category as the article addresses an issue that I believe is one of the root causes of poverty in the developing world.

A South African crime lawyer has claimed that East African countries, Kenya, Tanzania and Uganda earn $20b annually from illegal trade in narcotics and other forms of organised crime.

Charles Gerodema said "Corruption is rated as a significant source of illegally earned wealth in Kenya, Tanzania and Uganda. In Kenya, it ranks ahead of the illegal trade in narcotics. In 2003, an estimate of $8.57m was held in foreign accounts."

Smuggling of gold, gems and tanzanite account for a high proportion of illegal income.

In 1999 and 2000, Germany recorded imports of gems from Tanzania worth $300m and United States imported $328m worth of tanzanite yet Tanzania official figures showed tanzanite exports worth only $31m was recorded.