The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth
by Tom Burgis

Summary

Africa’s rich endowment of natural resources was one of the reasons it was colonized in the 18th and 19th centuries, and provided a basis for hope that the continent would flourish economically once colonialism ended.  As anyone who studies Africa knows, things didn’t work out that way.  Tom Burgis opens his book with an anecdote about being treated for PTSD related to one of the many tragedies he covered as Africa correspondent for the Financial Times—a tragically apt metaphor for what Africa might need after the last six decades.

Africa’s resource wealth touches everyone in the developed world.  Every consumer electronic you use is likely made with key parts built with rare metals extracted from various regions of the continent, with few, if any, of the profits making their way back to Africans.  Petro-states abound in Africa as well, their fossil fuel exports powering the US and European economies, with plenty to spare for China and others.  Whether we are aware of it or not, Africa plays a key role in providing vital materials that make the developed world run.

The real tragedy is how little of the wealth generated by the continent has been reinvested in basic state functions.  Burgis goes into minute detail describing how corporate entities are formed, laws manipulated, and loopholes traversed in order to filter almost all the proceeds from Africa’s resources into the pockets of a small elite, both inside and outside Africa.  In Burgis’ telling, manipulative business practices enable the looting of revenue by leaders in order to maintain power and provide key resources at cheap prices to developed states.  These arrangements allow businesses to do almost as they please within African states, to the detriment of locals, so long as they play by the rules set out by the rulers.

While these are important stories that should be told, I think the book suffers from a few flaws that potential readers should bear in mind.  A lot of Burgis’ writing, especially when tracing the formation, function, and funding of corporate fronts is a bit dense and sometimes difficult to follow.  Burgis also jumps around geographically rather than focusing on one state at a time, which can make things a little confusing.  Despite this, I don’t think the unwieldy organization takes away from Burgis’ core message: Africa has problems, and we should give more thought to whether investment from developed states is helping to solve them or is simply enabling them.

Why is this relevant?

The African continent is inhabited by 1.2 billion people, and already has some of the highest population growth rates in the world.  As Burgis suggests, if African states are going to provide a better life for current and future citizens, the proceeds from their abundant resources need to form a developmental foundation.  It has been an issue since decolonization, and this book provides a good starting point for understanding the factors preventing progress.

Who should be reading this?

Anyone who’s interested in development generally, and Africa specifically, would likely find a lot to like in this book.  A word of warning though—if you don’t know a whole lot about international investment practices, Burgis only provides a light primer on the issues that he discusses at some length.  My advice: read up a little on international investment concepts and practices first, then give this book a read!

Note: Context Corner are brief reviews by the HPAR editorial board of the books they were reading or had read.

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