Corporations and global debt

I read recently (Observer 21 Jan) of the Tax Justice Network for Africa (TJNA) and its assertion that over €120bn of tax due to governments in Africa has been moved to secretive tax havens, many under the juristiction of Western governments and facilitated by international banks. This far outstrips the empty pledges made at Gleneagles in 2005 and should make for some interesting debate at the World Economic Forum at Davos but will no doubt be swept under the carpet.

This means that 30 per cent of the Africa's GDP is siphoned off from the most vunerable people on the planet by a system that puts profit before people. To put it in context, it was estimated in 2005 (also in the Observer) that the total stock of private wealth in these low-tax havens was €17 trillion. How can our so-called leaders allow this to happen? Governments are supposed to serve the people but this ideal seems to have been corrupted absolutely by big business.

People need to wake up to the fact that a corporation's only legal obligation is to its shareholders. The system now in place allows these corporations the scope to bend rules and influence government in order to pursue the profit agenda. While this is the case situations like the one described above will continue.

Barry Walsh, 2 Church Rd, Blackrock, Cork