Aid in reverse: how poor countries develop rich countries

New research shows that developing countries send trillions of dollars more to the west than the other way around. Why?

We have long been told a compelling story about the relationship between rich countries and poor countries. The story holds that the rich nations of the OECD give generously of their wealth to the poorer nations of the global south, to help them eradicate poverty and push them up the development ladder. Yes, during colonialism western powers may have enriched themselves by extracting resources and slave labour from their colonies - but that's all in the past. These days, they give more than $125bn (102bn) in aid each year - solid evidence of their benevolent goodwill.

This story is so widely propagated by the aid industry and the governments of the rich world that we have come to take it for granted. But it may not be as simple as it appears.

The flow of money from rich countries to poor countries pales in comparison to the flow that runs in the other direction

Related: Forget 'developing' poor countries, it's time to 'de-develop' rich countries