Talking Points on Illicit Financial Flows and Tax Justice
Inequality and tax evasion are growing both
within and between countries, while the rich on all continents funnel
their wealth into secret bank accounts scattered around the world.
This erodes the public sector, starves countries of funds needed
for development, and drives up deficits.
The trend is worldwide as multinational companies shuttle money and
subsidiaries between countries to minimize taxes, while the ultra-rich and organized crime hide their assets in untraceable shell accounts. But the toll in Africa is enormous, with losses estimated at $50 billion to $80 billion a year due to illicit capital flight.
One recent study, for example, estimated at least US$60.8 billion in losses due to transfer pricing in or out of 5 African Countries (Ghana, Kenya, Mozambique, Tanzania, and Uganda), from 2002-2011.
The good news is that governments and multilateral agencies around
the world are waking up to this issue, and the pressure for transparency
in financial reporting is growing. The same technical mechanisms that
have been used to track funds of drug traffickers and terrorist networks can now be used, if there is political will, to track
monies lost to illicit financial flows and tax evasion.
June 22, 2016 Africa/Global: "Stop the Bleeding" Updates
"A new report by Tax Justice Network-Africa and ActionAid says that
East African countries (Tanzania, Kenya, Uganda and Rwanda) are
losing approximately $2 billion a year of revenue each year by
granting tax incentives to multinational companies. ... According to
Yaekob Metena, ActionAid Tanzania's country director, 'Though there
have been improvements in recent years in addressing the issue,
governments in East Africa continue to give away domestic resources
in tax incentives, funds that could pay for the regions' education
and health needs and meeting the development objectives.'"
June 13, 2016 Africa/Global: Don't Be a Fossil Fool
From solar TVs in rural Kenya to modular concrete for windmills in
Iowa, the pace of technological advance continues to accelerate,
making renewable fuels more and more competitive with fossil fuels.
Technology alone will not be sufficient, of course. But these
trends, combined with worldwide climate activism and increasing awareness
among the public and government policy-makers, are leading even
establishment analysts to conclude that, in the words of the
Financial Times, "fossil fuel producers face a future of slow and
Jun 2, 2016 Liberia/Global: Financial Secrecy at Work
"Finance Uncovered, working with an anonymous Liberian journalist,
has exposed a little-known offshore business registry that has
created tens of thousands of anonymous companies and registered them
to a non-existent address in Monrovia, Liberia's capital city.
Although these companies are technically a creation of Liberian law,
management of the registry is based in the United States and appears
to have the support of the US government. ... Our investigation has
discovered over half a billion pounds of high-value London property
registered to Liberian offshore companies."
May 26, 2016 Africa/Global: Migrants' Rights Roundup
the informal consensus was that the system of humanitarian response
to today's crises is "broken." The calls to "leave no one behind"
highlighted the particular vulnerability of the displaced. But it is
clear that such non-binding resolutions will only be implemented by
extensive mobilization on many fronts, including both those most
affected and their allies.
by date | by place | by topic
May 13, 2016
Mozambique: Debt Crisis & the Panama Papers
May 5, 2016
Uganda: Accountability and Child Soldiers
April 27, 2016
Nigeria: Shapes of Violence, 2
April 27, 2016
Nigeria: Shapes of Violence, 1
April 11, 2016
Africa/Global: Panama Papers Tip of Iceberg
Apr 5, 2016
USA/Global: When Elephants Fight
March 23, 2016
Namibia: Meeting Expectations?
March 16, 2016
Africa: Tolerance and Intolerance in Perspective
March 9, 2016
Africa/Global: Making Choices on Climate Future
February 29, 2016
USA/Africa: Rising Opposition to Tax Evasion
February 16, 2016
Africa: Ghosts at the African Union Summit
February 1, 2016
Africa/Global: Accounting Tricks with Coca-Cola
January 25, 2016
Africa: Charting the Digital Gender Gap
January 19, 2016
Africa: Stealth Assault on African Seeds
December 10, 2015
Africa/Global: Beyond the Paris Climate Talks
December 1, 2015
Africa/Global: Changing "the Media"